Orange: Strong 2024 Results, 2025 Organic Cash Flow Target Raised

Orange, the French telecommunications giant, has reported strong results for the first half of 2024, driven by robust performance in its Africa & Middle East region and solid improvement in Europe, including France. The company's strategic plan, "Lead the Future," has contributed significantly to its success, with key milestones achieved in each of the four strategic pillars. Christel Heydemann, Orange's Chief Executive Officer, commented on the results, highlighting the company's ability to execute its strategic plan in a constantly evolving market.

Orange's group revenues rose 0.9% compared with the second quarter of 2023, thanks to growth in retail services and a smaller decline in wholesale services. The Africa & Middle East region was the main contributor to this growth, with revenues rising strongly by 10.3% led by a robust performance in voice and double-digit increases in its four growth engines. Revenues in France increased by 0.3%, in line with the "Lead the Future" growth target of between 2.0% and 4.0%. Europe declined by 2.2% due to a reduction in low-margin activities, partially offset by growth of convergent services.

The Group's EBITDAaL was up 2.6% in the second quarter, driven by the remarkable performance of Africa & Middle East, a solid performance in Europe, and France's EBITDAaL stabilization. This growth more than offset the decline of Orange Business, which recorded an improvement compared with the first half of 2023. The Group's operating income in the first half of 2024 was up 8.4% due to the increase in EBITDAaL. Consolidated net income in the first half of 2024 was stable at 1,092 million euros, with the contribution to net income for the first half 2024 from Spanish activities being 3 million euros.

Orange's strong performance in 2024 has led to an increase in its 2025 organic cash flow target. The company's financial targets for 2024 include low single-digit growth in EBITDAaL, discipline on eCAPEX, an organic cash flow of at least 3.3 billion euros from telecom activities, and a net debt/EBITDAaL ratio of telecom activities unchanged at about 2x in the medium term. The Group also plans to propose an increase in the 2024 dividend payable in 2025 to 0.75 euros per share, including an interim dividend of 0.30 euros in December 2024.

Orange's success in the Paris Olympic Games, where it provided reliable and efficient connectivity solutions for athletes, organizers, spectators, and viewers from all around the world, showcased the company's expertise in delivering high-quality services under challenging circumstances. This achievement further solidified Orange's reputation as a reliable partner for large-scale projects and contributed to the company's overall positive performance in 2024.



In conclusion, Orange's strong 2024 results, driven by its strategic plan "Lead the Future" and key operational achievements, have led to an increase in the company's 2025 organic cash flow target. The company's ability to maintain discipline on cost control, execute its strategic plan, and deliver high-quality services has positioned it well for future growth and success in the telecommunications industry.