Orange (ORA) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong revenue and EBITDA/EBITDAaL growth, confirming full-year 2024 guidance and demonstrating robust commercial momentum in France and double-digit growth in Middle East & Africa (MEA).

• Maintained market leadership in France with solid convergence, improved customer metrics, and strong upsell momentum.

• MEA achieved its sixth consecutive quarter of double-digit revenue growth, with outstanding performance in mobile, broadband, and Orange Money.

• Paris 2024 Olympics showcased technological leadership, boosting brand image and B2B opportunities.

• 2024 financial guidance fully confirmed, with successful execution of the Lead the Future strategic plan.

Financial highlights

• Q3 2024 revenues rose 1.6% year-over-year to €10.0 billion; EBITDA/EBITDAaL increased 2.7% to €3.3 billion, with margin at 33.7%.

• eCAPEX decreased 2.5% year-over-year to €1.36 billion; eCAPEX/revenues at 13.6%, in line with the annual target.

• Retail services revenue in France (ex-PSTN) grew 2.8% in Q3; MEA revenues up 10.5% year-over-year.

• Organic cash flow from telecom activities expected to be at least €3.3 billion for 2024.

• Interim dividend of €0.30/share in December 2024; proposed full-year dividend of €0.75/share.

Outlook and guidance

• 2024 and 2025 guidance reaffirmed: low single-digit EBITDA/EBITDAaL growth, disciplined eCAPEX, and net debt/EBITDAaL ratio around 2x medium term.

• Organic cash flow from telecom activities expected to be at least €3.3 billion for 2024.

• Segment targets: stable EBITDA/EBITDAaL in France, low-to-mid single-digit growth in Europe, double-digit growth in MEA, and halved EBITDAaL decline in Orange Business.

• Dividend of €0.75/share payable in 2025.

• Retail services in France (excluding PSTN) expected to grow by more than 2.5% in H2.