Orange's Leadership Shifts: A Strategic Pivot for Growth in France and the Middle East & Africa

Orange, the Franco-Dutch telecom giant, has announced a significant leadership reshuffle in its France and Middle East & Africa (MEA) divisions, appointing Jérôme Hénique as CEO of Orange France and Yasser Shaker as CEO of Orange MEA. These moves, effective by mid-2025, are strategic pivots aimed at accelerating growth in core markets while addressing evolving industry challenges.

Leadership Changes and Strategic Alignment

Hénique, previously CEO of Orange MEA, takes over in France with a mandate to deepen the company’s dominance in fixed broadband and 5G. France remains Orange’s largest market, contributing 20% of group revenues in 2024. Under his leadership, the focus will be on completing the copper-to-fiber migration—a critical initiative to connect 93% of French households to fiber by 2025. This aligns with the Engage 2025 strategy, which targets 5 million additional fiber connections in Europe by 2025.

Shaker, stepping up from his role as CEO of Orange Egypt, will lead the MEA region, where Orange aims to achieve a 5% compound annual revenue growth rate. His expertise in Egypt’s digital transformation positions him to capitalize on rising demand for mobile data, financial services (e.g., Orange Money), and enterprise solutions in Africa and the Middle East.

Financial Performance and Strategic Momentum

Orange’s financial results under current CEO Christel Heydemann underscore the company’s resilience. In 2024, group revenue grew 1.2% to €40.26 billion, while EBITDAaL rose 2.7% to €12.11 billion. The MEA region was a standout performer, delivering 11.1% revenue growth driven by mobile data (up 18.4%) and financial services.

The stock’s 15% rise since 2023 reflects investor confidence in its fiber investments and MEA growth.

Key Strategic Initiatives

1. France: Fiber Leadership and Operational Efficiency
2. FTTH Expansion: By 2025, 60.1 million households will be connected to fiber, with plans to reduce operational costs through AI-driven network management.

3. 5G Modernization: A €6.26 billion capex program (2021–2025) supports 5G rollout in six European countries, enhancing enterprise services.

4. MEA: Digital Inclusion and Financial Services

5. Orange Money: Targeting €900 million in revenue by 2023, the service now serves 41.1 million active users.
6. Infrastructure Partnerships: RAN-sharing agreements and lightweight towers are expanding rural 4G coverage, critical for digital inclusion.

Risks and Challenges

• Regulatory Pressure: EU competition reforms and spectrum auctions could impact margins.
• Debt Management: Despite a net debt/EBITDAaL ratio improving to 1.84x in 2024, further capex in fiber and cybersecurity may strain liquidity.

Conclusion: A Strategic Bet on Growth

Orange’s leadership reshuffle is a calculated move to capitalize on high-margin opportunities in fiber and digital services. With France’s fiber rollout nearing completion and MEA’s financial services scaling rapidly, the company is well-positioned to meet its 3% EBITDAaL growth target for 2025.

The MASORANGE joint venture in Spain—creating a top-tier telecom operator—demonstrates Orange’s ability to execute strategic partnerships. Meanwhile, sustainability efforts, including a 38.6% reduction in carbon emissions since 2015, align with ESG investor priorities.

Investors should monitor two key metrics:
- France Fiber Penetration: Targeting 93% of households by end-2025.
- MEA Revenue Growth: Aiming for 5% CAGR, driven by mobile data and financial services.

With a dividend floor of €0.75 per share and a disciplined capex plan, Orange’s strategic pivot under its new regional leaders offers a compelling risk-reward profile. The company’s dual focus on infrastructure leadership and emerging markets positions it to outperform in a consolidating telecom landscape.

These metrics, combined with its regional leadership, suggest Orange is navigating the telecom transition toward digital services and sustainability with purpose—and investors stand to benefit.