Orange (ORA) Q2 2024 earnings summary

Executive summary

• H1 2024 delivered strong results, with revenue at €19,839 million (up 2.5% historical, 1.5% comparable), EBITDAaL up 2.5% to €5,511 million, and organic cash flow up 17.4%, confirming full-year guidance.

• Africa & Middle East posted double-digit growth in both revenues (+10.7%) and EBITDAaL (+14.7%), significantly contributing to group performance.

• Strategic initiatives advanced, including the MásOrange JV in Spain, a new FibreCo with Vodafone Spain, and B2C cybersecurity offerings.

• Net financial debt reduced by €3,991 million to €23,011 million, mainly due to MásOrange proceeds; net debt/EBITDAaL ratio improved to 1.90x.

• The group is the official connectivity partner for the Paris Olympic Games, showcasing operational expertise.

Financial highlights

• H1 2024 revenues reached €19.8 billion, up 1.5% year-over-year; EBITDAaL at €5.5 billion, up 2.5%; free cash flow (all-in) at €1.26–1.3 billion, up over €200 million year-on-year.

• Organic cash flow from telecom activities was €1.55 billion (+17.4% yoy); net income stable at €1.1 billion; EPS at €0.28.

• eCAPEX (excluding Spain) was €2,921–2,921 million, up 2.6% year-on-year; eCAPEX/sales ratio at 14.7%.

• EBITDAaL margin from telecom activities: 28.1%, up 0.3 pts year-over-year.

• Average number of employees: 120,018, down 1.9% year-over-year.

Outlook and guidance

• Full-year 2024 and 2025 organic cash flow guidance fully confirmed: low single-digit EBITDAaL growth, disciplined eCAPEX, organic cash flow (telecom) ≥ €3.3 billion, net debt/EBITDAaL around 2x, and €0.75 dividend proposed for 2024.

• Interim dividend of €0.30 per share to be paid in December 2024.

• Upgraded ambition for MEA to double-digit EBITDAaL growth; Europe outlook upgraded to low- to mid-single-digit EBITDAaL growth.

• France expects stable EBITDAaL in 2024, with retail revenue (ex-PSTN) to grow 2–4% in coming quarters.