Telecomunicazioni
Orange Financial results at 30 June 2020
Press release
Paris, 30 July 2020
Financial results at 30 June 2020
Orange very resilient despite the effects of the Covid-19 pandemic
Revenues and EBITDAaL declined in the 2 quarter of 2020, negatively impacted by the effects of the health crisis. In the 1 half overall, revenues continued to grow, with a very moderate decline in EBITDAaL.
Good commercial performance, deferred investments and cost control enable Orange to reiterate its objective of 2020 organic cash flow of more than 2.3 billion euros.
§ In the 2 quarter of 2020, revenues declined 0.4% , negatively impacted by the decline in roaming and equipment sales directly linked to the health crisis.
France and Africa & Middle East rose 2.7% and 1.3% respectively year on year, almost completely offsetting the combined decline in other segments: Spain (-6.8%), Europe (-3.6%), Enterprise (-3.3%).
These resilient results stem from the Group's strategy focused on greater connectivity and new growth areas, enabling us to increase our customer bases.
In line with the "Engage 2025" plan, Orange signed a long-term electricity purchasing agreement with Boralex, a pioneer in renewable energy and the leading independent producer of onshore wind energy in France. This contract for 67 GWh per year covers nearly 3% of Orange's electricity consumption in France.
Outlook
For the financial year 2020, Orange confirms that it does not foresee any significant deviation with respect to its financial objectives:
For the 2021-2023 period, Orange confirms its financial objectives as announced during the investor day on December 4, 2019.
Orange will pay an interim dividend of 0.30 euros in cash on December 9, 2020. The decision on the final amount of the 2020 dividend will be announced between the results publication dates for the 3 and 4 quarters of 2020. A distribution of 0.70 euros per share remains the Group's objective, including for the 2020 fiscal year, the final decision will be taken at a later date, depending on the situation.
Commenting on the publication of the 1 half 2020 results, Stéphane Richard, Chairman and CEO of the Orange Group, said:
"Orange has shown a remarkable level of resistance in the first half of the year, despite the effects of the Covid-19 pandemic, with a 0.3% increase in revenues and a contained decrease in EBITDAaL of 0.8%. These results bear witness to our business' resilience and its capacity for collective mobilisation in the face of this crisis.
In France, in spite of the restrictions due to the pandemic, our commercial dynamic is good, in particular in fiber: indeed we delivered a second-quarter record of 238,000 net additions. Our customers' appetite for fiber confirms the validity of our investment strategy and we are continuing our deployment with a view to building as many connection points in 2020 as we did in 2019 notwithstanding the unprecedented health context.
In Spain, where the situation remains challenging given the market's slide towards low cost, we have adapted our positioning and enlarged the range of our offers: a strategy that is now showing its first results.
In Africa and in the Middle East, revenues grew 3.8% in the first half and EBITDAaL rose by more than 7%: an excellent performance driven by mobile data (with a 40% increase in 4G customers year on year), by broadband and by Orange Money, that will be further strengthened by last week's launch of Orange Bank Africa.
Even though Orange has proven to be more vital than ever to its business customers over these past months, the health crisis has impacted our results in B2B. I would, however, point to the very good performance of Orange Cyberdefense and Orange Cloud for Business where revenues grew by 11% and 8% in the first half.
This crisis has revealed the strategic nature of telecoms networks for our economies and even society as a whole. While impacted, we are comforted in the strategic choices we made with Engage 2025, the roll-out of which we will be accelerating, whether this be through mastering our carbon footprint, the deployment and optimisation of our infrastructures or the development of our growth territories.
I'd like to conclude by extending my warm thanks to all of Orange's teams who have been fully mobilised throughout the crisis to serve our customers."
Key figures
Data at June 30
(1) Adjustments to the presentation of EBITDAaL are described in Appendix 1.
(1) Net financial debt as defined and used by Orange does not include Orange Bank activities, for which this concept is not relevant.
(2) The ratio of net financial debt to EBITDAaL for telecoms activities is calculated as the ratio of the Group's net financial debt (see Section 3.1.5.6 Net financial debt) to EBITDAaL for telecoms activities (see Section 3.1.5.2 EBITDAaL) calculated over the previous 12 months.
Key figures
Quarterly data
(1) Adjustments to the presentation of EBITDAaL are described in Appendix 1.
On July 29, 2020, Orange SA's Board of Directors reviewed the consolidated half-year financial statements and activity report for the period ended June 30, 2020. In accordance with auditing standards, the Group's auditors conducted a limited review of the half-year accounts and verified the information given in the half-year activity report.
More detailed information on the Group's financial statements and performance indicators is available on the Orange website in the "Investors/Results and Presentations" section:
www.orange.com/en/Investors/Results-and-presentations
Comments on key Group figures
Revenues
Orange Group revenues were 20.8 billion euros in the 1 half year, up 0.3% year on year on a comparable basis. This growth was fueled by the momentum of the 1 quarter (+1.0%) while 2 quarter 2020 revenues were down (-0.4%), negatively impacted primarily by the decline in roaming and equipment sales directly linked to the health crisis.
At the Group level, the principal services posted the following 1 half performances on a comparable basis (all changes are year on year):
Revenues from convergence services in all of the Group's European countries were 3.6 billion euros in the 1 half, up 4.1%. This increase enabled Orange to consolidate its position as the leading convergent operator in Europe.
Revenues from mobile only services were 5.1 billion euros in the 1 half, down 1.2% due to the slowdown in net additions in Spain and to a lesser degree in Europe.
Revenues from fixed only services (4.7 billion euros) declined 2.0% due to the downward trend in fixed narrowband services and the migration towards convergent services.
Revenues from IT and integration services (1.6 billion euros) grew 5.1%. This growth was driven by Poland and to a lesser extent by Enterprise which was impacted by the health crisis in the 2 quarter.
Revenues from carrier services (4.1 billion euros) rose 5.2%. This growth was driven by wholesale fixed services, in particular revenues related to co-financing and the construction of Public Initiative Networks (PINs) in France.
Revenues from equipment sales fell 16.9% (1.2 billion euros), impacted by a slowdown in the market and the closure of stores during the lockdown period.
Customer base growth
The convergent customer base had 10.8 million customers across the Group as of June 30, 2020, up 2.1% year on year, supported by very strong growth in Europe.
Mobile services had 208.0 million customers at June 30, 2020, an increase of 1.9% year on year.
Fixed services had 45.1 million customers at June 30, 2020, down 2.0% over one year, mainly due to the decline of nearly 12.5% in the number of fixed narrowband accesses.
EBITDAaL
Group EBITDAaL was 5.91 billion euros in the 1 half, down 0.8% on a comparable basis, impacted by the decline in activity related to the health crisis. The main additional costs arising from the management of the health crisis were 160 million euros over the first six months of 2020. They were broadly offset by efforts to control costs of an equivalent amount. In the 2 quarter, Group EBITDAaL declined 1.8%, after growth of 0.5% in the previous quarter, negatively impacted in particular by the costs related to health measures, the decrease in roaming and a slight increase in customer bad debts.
EBITDAaL from telecoms activities was 5.99 billion euros in the 1 half, down 0.9% on a comparable basis.
Operating income
In the 1 half, the Group's operating income was 2.25 billion euros, down 139 million euros (-5.8%) on an historical basis.
This decrease is explained mainly by the 43 million euro decrease in EBITDAaL on an historical basis, the 104 million euro increase in net expenses for legal actions, corresponding to the reassessment of the risk relating to a number of these disputes, and the 49 million euro increase in depreciation and amortization of fixed assets which were partially offset by the 56 million euro decline in the costs of restructuring programs.
Net income
At June 30, 2020, Orange's consolidated net income was 1,016 million euros, compared with 1,137 million euros at June 30, 2019, on an historical basis. This change reflects mainly the decrease in operating income.
eCAPEX
The Group's eCAPEX declined 9.9% in the 1 half and 15.8% in the 2 quarter due to the increase in co-financing in France and to disposals of assets, in particular the disposal of non-strategic towers in Spain. This decrease is also explained by a slowdown in investments in mobile and traditional services that offset growth in FTTH investments, particularly in France, which were lower than expected following the health crisis.
In spite of this decrease, the Group continues deploying fiber, in which it is the undisputed leader in Europe. Between June 30, 2019 and June 30, 2020, the number of connectable households increased 42.7% in France, 21.3% in Poland, and 7% in Spain.
Organic cash flow
Organic cash flow from telecoms activities reached 255 million euros, up by 163 million euros over one year on an historical basis. This was mainly due to the decline in eCAPEX and payments linked to net financial interests and to corporate taxes which offset the decline in EBITDAaL and the deterioration of working capital requirements affected in particular by the impact of the Group's measures to support its most vulnerable suppliers and service providers in France.
Changes in asset portfolio
There was no significant change in the asset portfolio in the 2 quarter of 2020.
Net financial debt
The Orange Group's net financial debt totaled 26.4 billion euros at June 30, 2020, up by 954 million euros compared with December 31, 2019. The change in debt in the first half of 2020 is in particular linked to the seasonality of activity.
The ratio of "net financial debt to EBITDAaL for telecoms activities" stood at 2.04x at June 30, 2020. This is in line with the objective of a net debt to EBITDAaL ratio for telecoms activities of about 2x in the medium term.
Dividends
Orange will make an interim dividend payment of 0.30 euros in cash on December 9, 2020. The decision on the balance of the dividend will be announced between the results publication dates for the 3 and 4 quarters of 2020. A distribution of 0.70 euros per share remains the Group's objective, including for the 2020 fiscal year, the final decision will be taken at a later date, depending on the situation.
Review by operating segment
France
In France, revenue growth was driven by wholesale services and the resiliency of retail services.
Revenues in France were up 2.7% in the 2 quarter, driven by the momentum of wholesale services (+11.7%) and the strong resilience of retail services (+0.1%), despite the negative effects of the lockdown on roaming and FTTH deployment.
Revenues from retail services grew 0.1% in the 2 quarter, an improved trend compared to the 1 quarter, when it was stable. Excluding STN, retail services grew 1.9% year on year.
In the 2 quarter, convergent revenue grew 4.1%, thanks in particular to the profusion and new pricing of offers. Mobile only revenues were down 3.1%, impacted by migrations towards convergence. Fixed only revenues dropped 2.5%, impacted by the continued decline of narrowband services (-12.0%).
Wholesale revenues grew 11.7% in the 2 quarter, an acceleration compared to the 2.6% growth in the 1 quarter. This growth was driven by co-financing received in Less-Populated Areas and by the construction of PINs, which more than offset the decline in roaming and unbundling.
Revenue from equipment sales declined 26.7% year on year, very heavily impacted by the closure of all stores in France during the lockdown and despite a strong recovery in June.
Other revenues growth of 27% year on year was driven by continuation of the built-to-suit program, which will enable Orange to undertake the accelerated deployment of its mobile network and increase the density of its coverage in rural areas and on transportation routes while still retaining the investment power needed to consolidate its leadership across the entire network.
In terms of ARPO, convergent ARPO grew 1.5 euros in the quarter to reach 68.7 euros. Mobile only ARPO dropped 0.21 euro year on year and stood at 16.6 euros in the 2 quarter, due to lower roaming revenues related to Covid-19. Fixed broadband ARPO grew 0.07 euros in the 2 quarter, in particular thanks to the increase of VoIP and entertainment usage, which intensified during the lockdown.
In terms of sales performance in the 2 quarter, mobile contracts showed solid resilience with 29,000 net additions (after -58,000 net adds in the 1 quarter of 2020), in a market that remains very competitive and was impacted by the closure of shops during the lockdown.
Fixed broadband recorded 61,000 net adds in the 2 quarter, compared to 41,000 net adds in the 2 quarter of 2019. This performance was driven by an excellent quarter for fiber with 238,000 net adds despite the lockdown. This was a record high for a 2 quarter and a real commercial success since 51% of these sales were to new customers. Orange continued fiber deployment at a faster pace in the 2 quarter with a total of 19.3 million households connected and 3.8 million fiber customers at the end of June.
The broadband convergent retail customer base grew 1.1% year on year with 1.67 mobile lines per convergent offer, up 1.3% year on year.
EBITDAaL grew slightly in the 1 half (+0.5%) The FTTH co-financing received, as well as our cost-saving efforts, offset the effects of the crisis (loss of roaming revenue, health costs, etc.) as well as the sharp decline in traditional services, such as national roaming.
Spain
Financial performance in Spain was impacted by the health crisis and the market shift towards low-cost.
Orange Spain's revenues dropped 6.8% in the 2 quarter, strongly impacted by the health crisis and a very intense promotional environment since the end of portability restrictions. Thus, revenues from retail services dropped 7.2%, affected by declines in all its components.
Convergent revenues fell 3.1% in the 2 quarter, with mobile only revenues down 13.1% and fixed only revenues down 10.8%. Revenues from IT and Integration services jumped 64.4 %, fueled by the enterprise market, but remain low in volume terms.
Revenues from wholesale services rose 10.4% in the 2 quarter, despite the sharp decline in visitor roaming, driven by the increase in international traffic, while revenues from equipment sales fell 27.2%, impacted by the almost-total shutdown of sales activity during the lockdown.
On the commercial front, in response to a market polarization accentuated by the health crisis, Orange has implemented a strategy aimed at protecting value at the high end of the market while increasing volumes at the low end. This strategy is bearing fruit and enabled an increase in convergent ARPO for the two main brands, Orange and Jazztel, and a stable convergent ARPO of 57.5 euros overall.
EBITDAaL declined 7.5% in the 1 half, absorbing part of the lost revenue through continued efforts on indirect cost and direct cost savings, mainly related to the slowdown in sales activity during the health crisis.
Europe
Convergence and IT supported the solid momentum in retail services. EBITDAaL grew thanks to transformation initiatives.
Revenue from Europe ( namely Belgium, Luxembourg, Moldova, Poland, Romania and Slovakia) declined 3.6% in the 2 quarter, mainly impacted by a sharp slowdown in equipment sales (-16.6%) and energy resales in Poland (a component of "other revenues" which declined 34.2%). Growth in retail services was sustained (+1.6%), although slowing from the previous quarter (+4.3%) due in particular to a lower contribution from international roaming tied to travel restrictions put in place by many countries.
Within retail services, convergent revenues maintained solid growth of 22.5%, confirming the momentum of this market where Orange is the leader in Europe. Mobile only revenues were down 6.7% in the 2 quarter impacted in particular by migrations towards convergence. Fixed only revenue slowed 2.5%, which was an improvement compared to the 5.2% decline in the 1 quarter and the 8.0% decrease in the 4 quarter of 2019. The growth in fixed broadband services did not offset the decline in fixed narrowband services. IT and integration services continued to post strong revenue growth rising 39.3%, mainly due to Poland.
Wholesale revenues declined 6.9% in the 2 quarter after a 0.6% increase in the previous quarter. This slowdown was due to reductions in mobile call termination rates, the end of national roaming contracts, lower SMS usage, particularly in Belgium, and a decrease in the number of international visitors. Revenue from equipment sales fell 16.6%, impacted by the slowing market and above all by the closure of a large number of stores which lasted until June. In terms of sales performance in the 2 quarter, the health crisis weighed heavily on mobile contract net additions (-10,000 vs. +28,000 in the 1 quarter) and on prepaid (-460,000 vs. -228,000 in the previous quarter). The impact was more moderate on convergence (+58,000 vs. +85,000 in the 1 quarter) and fixed broadband (+40,000 compared with +51,000 in the previous period), which included +49,000 net fiber additions, even better than a year ago (+46,000). The TV customer base continued to grow, up 4.6%, albeit at a slower rate than the 1 quarter (+7.4%).
At the European country level, Poland posted its 8 consecutive quarter of growth (+2.6%), an acceleration compared to the previous quarter (+0.9%), driven by good momentum in retail services (+4.5%). Other countries in the region posted lower revenues, mainly due to the slight decline in retail services and a more marked decline in equipment sales.
EBITDAaL in the 1 half grew 4.3% (+30 million euros), with a positive contribution from Poland (+8.2%) and Belgium (+8.8%), as a result of successful transformation initiatives and efforts to mitigate the impact of the health crisis, especially in Poland.
Africa & Middle East
Good resilience in Africa & Middle East.
Africa & Middle East revenues rose 1.3% in the 2 quarter compared to a 6.2% increase in the previous quarter. Despite the impact of the health crisis which caused shop closures, the resilience of retail services (+4.7%) fueled this momentum, due in particular to the growth drivers of mobile data, fixed broadband and Orange Money, whose growth has however slowed compared to the 1 quarter.
Mobile only revenues grew 3.9% in the 2 quarter with the 4G customer base reaching 27.9 million, a 40.4% increase over 12 months. This growth is supported in particular by data with revenue up 26.5% in the 2 quarter. The composition of the mobile customer base continued to improve with a contract base share up 2 points and a churn rate on prepaid services down 0.3%.
Fixed only revenues rose 10.8% in the 2 quarter, a decline compared to the 12.0% increase in the previous quarter. The number of fixed broadband customers grew 31% year on year, reaching 1.4 million customers, confirming its role as a growth driver with fixed broadband revenue up 32.9% in the 2 quarter.
Revenues from wholesale services were down 16.0% in the 2 quarter, impacted in particular by the decline in international transit business and visitor roaming. Revenues from equipment sales also fell, down 18.3% due to a market slowdown and of course the health crisis that caused the closure of many shops.
Orange Money revenues were up 12.5% in the 2 quarter, compared with a 22.3% rise in the 1 quarter, adversely impacted by both the lockdown and free transactions recommended by the Central Bank of West African States in the context of the health crisis. The active customer base grew strongly (+18.9% year on year) and totals 19.6 million customers.
Across the countries of Africa & Middle East, the mobile customer base remained stable with 123.5 million customers.
In the 2 quarter, 10 countries in the region grew, including 5 that posted double-digit revenue growth. Among the countries contributing most to total revenues in Africa and the Middle East, the Côte d'Ivoire cluster posted 7.3% year-on-year growth, thanks to the good performance from Burkina Faso and value offers in Côte d'Ivoire, and Egypt grew 3.3 % .
EBITDAaL in Africa & Middle East grew 7.2% in the 1 half to reach a 32.9% margin rate, up 1.1 points thanks to cost control and continued transformation initiatives.
Enterprise
A decrease in revenues after six consecutive quarterly increases due to the impact of the health crisis on business activity and project roll-outs.
In the 2 quarter, revenue in the Enterprise segment fell 3.3% after six consecutive quarterly increases. Orange's B2B services have played a critical role in enabling businesses to remain operational during the health crisis; nevertheless the decline in business activity and delays in project roll-outs by enterprise customers impacted revenues.
Revenues from IT and integration services recorded the first decline in its history (-2.6%) in the 2 quarter, while remaining up over the half year (+1.9%). The 2 quarter decline stemmed from the effect of the health crisis, which was unable to be offset by the good performance in the 1 half of cloud and cybersecurity services, up 8% and 11% respectively, demonstrating their importance, particularly in times of crisis. As of June 30, 2020, IT and integration services represented 38% of Enterprise segment revenues.
Data revenues decreased 2.0% in the 2 quarter, impacted in particular by Globecast whose broadcasting revenues were sharply reduced following the widespread cancellations of events around the world. Mobile* revenues declined 14.8% in the 2 quarter, mainly due to lower roaming revenues which were strongly impacted by the health crisis. Revenues from traditional voice services , however, grew 1.0%, driven by growth in voice traffic and audio conferencing services during the lockdown.
Enterprise EBITDAaL declined 18.5% in the 1 half with two-thirds of this decrease due to the impact of the health crisis, in particular on roaming and data. A transformation plan is currently being implemented and a return to EBITDAaL growth is not expected before the end of 2021.
* Mobile revenues include mobile services and mobile equipment sales invoiced to businesses and incoming mobile traffic from businesses invoiced to other carriers.
International Carriers & Shared Services
Revenues from International Carriers and Shared Services declined 5.4% in the 2 quarter after an increase of 0.7% in the 1 quarter.
Services to international carriers were severely impacted by the Covid-19 pandemic due to the halt in international travel and trips and the reduction of flows on voice Corridors. Other revenues were also impacted by the closure of movie theaters during the lockdown and by the decline in Orange Marine's installation activities, which were also slowed by the health crisis.
Orange Bank
In the 1 half of 2020, the Net Banking Income (NBI) of Orange Bank grew by 18 million euros year on year due to development of the new Orange Bank offer.
Operating income grew by 1 million euros compared to the 1 half of 2019, due to the increase in NBI and lower customer acquisition costs, in the context of a deteriorating economic and commercial environment due to the health crisis which resulted in the closure of Orange shops and Groupama agencies during the lockdown and led to an increase in the cost of risk.
In France, Orange Bank integrated Orange Courtage, which offers insurance for mobile handsets to 450,000 retail customers and 150,000 business customers. Orange Bank is continuing its value-oriented strategy by also becoming an insurance broker, achieving a new milestone in the development of cross-selling offers with Orange's core business.
As of June 30, 2020, Orange Bank had 1 million customers, including 31,000 in Spain where the service was launched in the 4 quarter of 2019.
Schedule of upcoming events
10/29/2020 - Publication of third quarter 2020 results
Contacts
Disclaimer
This press release contains forward-looking statements about Orange's financial situation and results of operations. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. In particular, the consequences of the Covid-19 outbreak are uncertain and the health crisis may exacerbate the risks that the Group faces. More detailed information on the potential risks that could affect our financial results is included in the Registration Document filed on 20 April 2020 with the French Financial Markets Authority (AMF) and in the annual report (Form 20-F) filed on 21 April 2020 with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Other than as required by law, Orange does not undertake any obligation to update them in light of new information or future developments.
Appendix 1: adjusted data to income statement items
In the 2 quarter:
Half-year data:
Appendix 2: key performance indicators
2019 data is on a comparable basis.
The key indicators by country are shown on the Orange Group website orange.com, in the Investors section of the document "Orange Investors data book Q2 2020", directly accessible through the following link:
www.orange.com/en/Investors/Results-and-presentations/Folder/All-consolidated-results
Appendix 3: glossary
Key figures
Data on a comparable basis: data based on comparable accounting principles, scope of consolidation and exchange rates are presented for previous periods. The transition from data on an historical basis to data on a comparable basis consists of keeping the results for the period ended and then restating the results for the corresponding period of the preceding year for the purpose of presenting, over comparable periods, financial data with comparable accounting principles, scope of consolidation and exchange rate. The method used is to apply to the data of the corresponding period of the preceding year, the accounting principles and scope of consolidation for the period just ended as well as the average exchange rate used for the income statement for the period ended. Changes in data on a comparable basis reflect organic business changes. Data on a comparable basis is not a financial aggregate as defined by IFRS and may not be comparable to similarly-named indicators used by other companies.
EBITDAaL or “EBITDA after Leases”: operating income (i) before depreciation and amortization of fixed assets, effects resulting from business combinations, reclassification of cumulative translation adjustment from liquidated entities, impairment of goodwill and fixed assets, share of profits (losses) of associates and joint ventures, (ii) after interest on debts related to financed assets and on lease liabilities, and (iii) adjusted for significant litigation, specific labor expenses, fixed assets, investments and businesses portfolio review, restructuring programs costs, acquisition and integration costs and, where appropriate, other specific elements. EBITDAaL is not a financial aggregate as defined by IFRS standards and may not be directly comparable to similarly-named indicators in other companies.
eCAPEX or “economic CAPEX”: (i) acquisitions of property, plant and equipment and intangible assets, excluding telecommunications licenses and financed assets, (ii) less the price of disposal of property, plant and equipment and intangible assets. eCAPEX is not a financial performance indicator as defined by IFRS standards and may not be directly comparable to indicators referenced by similarly-named indicators in other companies.
Organic Cash Flow (telecoms activities): for the perimeter of the telecoms activities, this corresponds to the net cash provided by operating activities, minus (i) lease liabilities repayments and debts related to financed assets repayments, and (ii) purchases and sales of property, plant and equipment and intangible assets, net of the change in the fixed assets payables, (iii) excluding effect of telecommunication licenses paid and significant litigations paid or received. Organic Cash Flow (telecoms activities) is not a financial aggregate defined by IFRS and may not be comparable to similarly-named indicators used by other companies.
Convergence
The customer base and the revenues invoiced to convergence services customers (excluding equipment sales) was for convergent offers defined as the combination of, at a minimum, a fixed broadband access and a mobile contract subscribed by retail market customers.
Convergent ARPO: the average quarterly revenues per convergent offer (ARPO) is calculated by dividing revenues from retail convergent services offers invoiced to customers generated over the past three months (excluding IFRS 15 adjustments) by the weighted average number of retail convergent offers over the same period. ARPO is expressed by monthly revenues per convergent offer.
Performance indicators
The fixed retail accesses correspond to the number of fixed broadband accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and other broadband accesses (satellite, Wimax and others)) and fixed narrowband accesses (mainly PSTN) and payphones.
The fixed wholesale accesses correspond to the number of fixed broadband and narrowband wholesale accesses operated by Orange.
Mobile only services
Revenues from Mobile only services consists of revenues invoiced to customers of mobile offers excluding retail convergence and equipment sales. The customer base includes customers with a contract excluding retail convergence, machine-to-machine contracts and prepaid cards.
Mobile only ARPO: the average quarterly revenues from Mobile only (ARPO) is calculated by dividing the revenue from Mobile only services (excluding machine-to-machine and IFRS 15 adjustments) generated over the past three months by the weighted average of Mobile only customers (excluding machine-to-machine) over the same period. The ARPO is expressed as monthly revenues per Mobile only customer.
Fixed only services
Revenues from Fixed only services include the revenue of fixed services excluding retail convergence and equipment sales: traditional fixed-line telephony, fixed broadband and enterprise solutions and networks . The customer base consists of fixed-line telephony and fixed broadband customers, excluding retail convergence customers.
Fixed only Broadband ARPO: the average quarterly revenues from Fixed only Broadband (ARPO) is calculated by dividing the revenue from Fixed only Broadband services (excluding IFRS 15 adjustments) generated over the past three months by the weighted average of Fixed only Broadband customers over the same period. ARPO is expressed as monthly revenues per Fixed only Broadband customer.
IT & integration services
Revenues from IT and integration services include revenue from unified communication and collaboration services (Local Area Network and telephony, consulting, integration, project management and video conferencing offers), hosting and infrastructure services (including cloud computing), application services (customer relations management and other application services), security services, machine-to-machine services (excluding connectivity), as well as equipment sales for the products and services above.
Wholesale
Revenues from other carriers consists of (i) mobile services to other carriers including incoming traffic, visitor roaming, network sharing, national roaming and Mobile Virtual Network Operators (MVNOs), and (ii) fixed services to other carriers including national networking, services to international carriers, high-speed and very high-speed broadband access (fibre access, unbundling of telephone lines and xDSL access sales) and the sale of telephone lines on the wholesale market.
Unless otherwise stated, changes are on a comparable basis.
Attachment
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