Jul 31, 2008

France Telecom issued a turnover up 1.5%

France Telecom issued a turnover up 1.5% over a year in the first half, to 26.3 billion euros, exceeding the expectations of analysts who tablaient about 26.1 billion euros. The net profit reported a decline of 19% in historical data to 2.7 billion euros against 3.3 billion in the first half of 2007 due to an increase in the tax burden on companies, the group in 2007 benefited from a deferred tax credit. A result, however, exceeds expectations. In a comparable basis, net income grew by 4.4%.

The gross operating margin increased by 4.7% to 9.7 billion euros, representing 36.8% of turnover. Accordingly, the cash flow organic earns 12%. The financial debt decreased by 4 billion a year. The staff costs rose by 17.4% to 16.7%, 4 000 posts successors been lost in the last twelve months in France.

The revenue growth reflects the performance of mature countries (+ 3% on a comparable basis in the first half) and growth in emerging countries (+ 11.2%). The results were better in the second quarter (+ 4.1% on a comparable basis), thanks to the dynamism of mature countries (+ 3.4%) and business mobile (+ 7%).

Revenues from mobile activity grew by 4.8% due to growth in customer base (+ 3.9% over a year in France) and uses. Consumption of votes included an increase which had not seen from a long time as chief financial officer of the group (+ 2.6% over a year). However, the price of voice decrease, consequently the share of data in revenue per subscriber increases (18.6% against 16.1% a year earlier). 66.5% of customers mobile operator customers are now packages in France.

In the ADSL in Europe, Orange won 15.6% of customers in one year in the first half. In France, turnover of the Internet increases by 26%. The number of fixed lines installed increased by 2%, while the erosion of market share across all lines slows. France Telecom believes its market share in ADSL to 49.5% in France, with 7.8 million ADSL customers at the end of June (+19%). The situation in the United Kingdom is more difficult, sales of broadband continues to erode (-7.7%). In Spain, however, for the first time since 2006, the strong growth of DSL compensates for the decline in other activities.

Regarding the fiber optics, the incumbent has indicated that its offer of civil engineering enabling alternative operators to access its sheaths to deploy fiber, to which he had committed two years ago, recently went out "in time and hour "and that it was operating" satisfactorily ". A few days ago, Arcep had asked France Telecom to "accede to any request" for access to its infrastructure, civil engineering, proposing a deal "at rates that reflect the costs involved."

The base of corporate clients increased by 19.8% to 630 000, and revenues by 2.9% in the world. This activity has contributed to the increase in gross operating margin.

For 2008, the group confirms its targets of over 7.8 billion euros in organic cash flow, stability of its gross operating margin, and maintaining the investment rate to 13% of turnover. It will pay an ordinary dividend of 0.6 euro per share, with a view to better distribution of dividends for the year.

Regarding external growth policy, France Telecom was "still looking for external growth opportunities in emerging markets and consolidation in the mature countries," while indicating that no "major project was to preparation in terms of consolidation ", echoing the failure of the acquisition of Telia Sonera.

by erectusplus at 5:42 AM |

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