Orange suffers in its accounts the impact of the pandemic and competition in Spain

PARIS, Apr 22 – Orange, France’s largest telecommunications company, said on Thursday that the COVID-19 pandemic continued to weigh on its first-quarter results, which was also marked by a further sharp decline in sales in Spain.

The former monopoly posted a 0.3% drop in core operating profit in comparable terms with the previous year, to 2.57 billion euros ($ 3.1 billion), in line with market expectations, reflecting the prolonged financial impact of reducing hefty roaming charges.

These plummeted 31% in the first three months of the year due to the drastic reduction in international travel due to the epidemic, according to Orange. In addition, Spain, Orange’s second market, posted a 7.4% decline in quarterly revenue as strong competition detracted from sales and profits.

“We know that it is going to be a long process, in a very competitive and fragmented market,” said CFO Ramón Fernández in a call with journalists, confirming that the group did not see a return to positive earnings trends in Spain before 2022 .

Group revenue rose 0.5% year-on-year to € 10.3 billion, thanks to equipment sales and Orange’s IT business.

The Orange group confirmed its objectives for the full year, including a basic operating profit slightly lower than in 2020 and an organic free cash flow from telecommunications activities of more than 2.2 billion euros.