- Orange 1Q Revenue has missed estimates, with a reported revenue of EU9.85 billion against the estimated EU10.03 billion.
- In terms of geography, France has seen a 0.7% y/y increase in revenue, reaching EU4.34 billion. This exceeds the estimated EU4.3 billion.
- Revenue for Africa & Middle East has seen a significant increase of 8.8% y/y to reach EU1.85 billion, surpassing the estimated EU1.8 billion.
- Enterprise revenue has experienced a slight dip of -0.6% y/y, totaling EU1.94 billion, which falls slightly below the estimated EU1.97 billion.
- Totem revenue remains unchanged y/y, at EU174 million. This falls short of the estimated EU180.2 million.
- International carriers and shared services witnessed a decrease of 5.6% y/y in their revenue, amounting to EU334 million. This is considerably lesser than the estimate of EU348.8 million.
- Earnings before interest, tax, depreciation, and amortization (EBITDA) after leases fell to EU2.41 billion, lower than the estimated EU2.46 billion.
- The Capex for telecom activities was reported to be EU1.38 billion, which is below the two separate estimates of EU1.48 billion.
- Notwithstanding these shortfalls, the company confirmed their target for low single-digit growth in EBITDAaL by 2024 and expect to generate at minimum of 3.3 billion euros organic cash flow from telecom activities.
- The dividend payable in 2025 is proposed to increase to 0.75 euros/share, with an interim dividend of 0.30 euros scheduled for December 2024.
- European revenue, excluding Spain, for the 1Q came in at €1,727 million, down from €1,762 million y/y.
A look at Orange SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Orange SA, a company providing telecommunications services to a wide range of customers, demonstrates a promising long-term outlook according to the Smartkarma Smart Scores. With a strong emphasis on both Value and Dividend, scoring high in these areas suggests a financially stable and rewarding investment opportunity. Additionally, scoring high in Growth and Momentum indicates a positive trajectory for the company’s development and market performance. However, the lower Resilience score may signal some vulnerability to potential challenges in the future.
Orange SA‘s strategic focus on delivering value to investors through dividends, along with its ability to sustain growth and maintain market momentum, positions it well for long-term success in the telecommunications sector. Despite some resilience concerns, the overall outlook appears favorable, with a solid foundation in place to drive continued performance and shareholder returns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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