What's Happening?
Orange Group has announced an increase in its full-year financial targets, driven by robust growth in its Africa and Middle East operations. CEO Christel Heydemann highlighted the region's significant contribution to the company's earnings before interest, taxes, depreciation, and amortization after leases (EBITDAaL), which grew by 12.8% to €1.57 billion. This growth is attributed to the expansion of 4G and 5G networks, now serving over half of Orange's 167 million customers in the region. The company also reported growth in its home market of France and across Europe, with France showing a modest increase of 0.9% to €2.88 billion and Europe recording a 2.2% rise to €986 million. Overall, Orange's group EBITDAaL rose 3.8% year-on-year to €5.67 billion, while revenue remained stable at €19.9 billion.
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Why It's Important?
The strong performance in Africa and the Middle East underscores the strategic importance of these regions for Orange Group's growth. The expansion of 4G and 5G networks is crucial as it enhances connectivity and digital services, which are vital for economic development in these areas. The increase in Orange Money customers by 20% year-on-year to 42.8 million indicates a growing demand for mobile financial services, which can significantly impact financial inclusion. Additionally, Orange's focus on cybersecurity through its new business division reflects the rising importance of digital sovereignty, as governments and enterprises prioritize data security and national data processing.
What's Next?
Orange Group plans to continue its investment in network expansion and digital services in Africa and the Middle East, aiming to further capitalize on the growth potential in these regions. The company has set a target for EBITDAaL growth of more than 3% for the next year, indicating confidence in sustained performance. The launch of the cybersecurity division suggests Orange will increasingly focus on providing secure digital solutions, aligning with global trends towards data protection and sovereignty. This strategic direction may lead to new partnerships and collaborations with governments and enterprises seeking enhanced digital security.
