Orange Group reported a boost in the number of consumers across its European footprint taking multiple services, with at least double-digit revenue growth from convergent offerings across four of its five divisions on the continent during Q1.
Across its European business, earnings from converged services contributed 38 per cent of the company’s total consumer retail revenue – its highest figure yet. In its home market of France, the deals contributed €1.1 billion of revenue, more than its fixed-only base, and a 15 per cent year-on-year increase.
Spain, Orange’s second largest market, recorded 7 per cent growth in converged revenue compared to Q1 2017, while Poland increased 43 per cent. Belgium and Luxembourg grew 159 per cent, and Central Europe booked a 68 per cent rise.
Orange CEO Stephane Richard (pictured) hailed the company’s Q1 2018 performance, while reiterating the importance of continuing to transform the business into one supplying multiple, diverse services to each customer.
“In this pivotal time for the Group, these strong results continue to demonstrate the relevance of our strategy and, in particular, our efforts to differentiate ourselves,” Richard said in the company’s earnings statement.
He added investments made to boost 4G and fibre connectivity would form the basis for its “transformation from a pure play telecommunications operator to a multi-service digital operator.”
Among the non-telecoms services already offered are an enterprise cybersecurity proposition, TV and Orange Bank, which is already available in France and set to be expanded into Spain during 2019.
Since the end of Q1, the company’s bid to increase access to high-speed and high-bandwidth connectivity in Europe was further bolstered by a deal for satellite connectivity with Eutelsat.
MEA boost
While convergence was a key growth driver in Europe, increases in data usage and mobile money uptake continued to dominate its performance in its Africa and the Middle East unit.
Revenue from mobile services were up 9.4 per cent year-on-year to €910 million, offsetting a 6.9 per cent decline in its wholesale business, which was attributed to lower demand for services from international carrier services and decreased roaming fees.
Orange Money revenue grew 49 per cent year-on-year with 36.7 million customers now using the service across its markets.
The segment as a whole reported 6.2 per cent year-on-year revenue growth, led by accelerated growth in Morocco and Egypt, and a return to growth in the Democratic Republic of the Congo. The region contributed €1.3 billion (12 per cent) to Group revenue in Q1.
Bottom line
Orange Group revenue for Q1 was up 2 per cent year-on-year to €10 billion. Net profit figures are not reported on a quarterly basis.
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