Orange (ORA) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered robust results with revenues of €9,911 million, up 0.6% year-over-year, and EBITDAAL growth of 3.2%, confirming 2025 financial targets and guidance, with all major segments contributing.

• Strong retail commercial performance, especially in Africa & Middle East, which posted double-digit revenue growth for the eighth consecutive quarter.

• MASORANGE joint venture in Spain performed in line with expectations, delivering significant synergies and commercial momentum.

Financial highlights

• Revenues rose to €9,911 million (+0.6% year-over-year), driven by retail services (+2.4%) and strong Africa & Middle East growth (+12.8%).

• EBITDAAL reached €2,480 million, up 3.2% year-over-year, with margin at 25.2% and eCAPEX at 14.8% of revenues.

• Retail revenue in France (ex-PSTN) grew 1.5%, with convergent ARPU up 4% year-over-year.

• Equipment sales declined 5.7%, and wholesale services fell 3.1%.

• Middle East and Africa retail revenue grew 12.8%, marking the eighth consecutive quarter of double-digit growth.

Outlook and guidance

• 2025 targets confirmed: around 3% EBITDAAL growth, disciplined eCAPEX, organic cash flow from telecom activities of at least €3.6 billion, and net debt/EBITDAAL ratio around 2x.

• Dividend of €0.75 per share proposed for 2024, with a 2025 floor at €0.75.

• MASORANGE targets over €300 million in synergies for 2025 and double-digit adjusted EBITDA minus net recurring CAPEX growth.

• Middle East and Africa expected to deliver at least high single-digit EBITDA growth in 2025.

• Europe segment outlook is for low single-digit EBITDA growth in 2025.