Latest news with #LaurentMartinez
Straits Times
03-08-2025
- Business
- Straits Times
GIC leads bidding for stake in Spanish broadband joint venture, sources say
Sign up now: Get ST's newsletters delivered to your inbox GIC and the joint venture owners are negotiating details of a potential agreement for a 20 per cent to 30 per cent stake, according to sources. LONDON – Singapore sovereign wealth fund GIC has emerged as the leading bidder for a significant minority stake in a fiber-optic broadband network venture owned by MasOrange SL and Zegona Communications, people familiar with the matter said. GIC and the joint venture owners are negotiating details of a potential agreement for a 20 per cent to 30 per cent stake, according to the people. A deal could value the business, which comprises over 12 million premises, at about €6 billion to €7 billion (S$9 billion to S$10.5 billion) including debt, they said. While talks are advanced, they could still be delayed or even fall apart, the people said, asking not to be identified as the information is private. Zegona-owned Vodafone Spain and MasOrange announced the creation of the venture in January, with an estimated enterprise value of €8 billion to €10 billion. They have said they would look for an investor to buy 40 per cent. Orange chief financial officer Laurent Martinez said on a media call this week that they are confident the deal could be closed by the end of 2025. Spain has one of Europe's largest fiber optic broadband networks, but widespread overlap between operators has led to fierce competition. Investors, such as pension funds and private equity firms, have been attracted to fiber in recent years given stable returns and low expenses once networks are deployed. MasOrange is the result of the merger between Masmovil Ibercom and the Spanish operations of Orange. Orange has a 50 per cent stake with the remainder controlled by three investment funds–Cinven, KKR & Co. and Providence Equity Partners– and MasOrange's chief executive officer, as well as others. Spokespeople for Orange, GIC, Cinven, Zegona, MasOrange and KKR declined to comment, while a representative for Providence didn't respond to requests for comment. BLOOMBERG
Yahoo
30-07-2025
- Business
- Yahoo
Orange SA (ORANY) (H1 2025) Earnings Call Highlights: Strong EBITDA Growth and Strategic Market ...
Revenue: EUR19.9 billion, up 0.3% year on year. EBITDA Growth: 3.8%, with a 70 basis points margin increase. Organic Cash Flow: EUR1.7 billion, up nearly 8% year on year. Net Debt-to-EBITDA Ratio: 1.9 times. CapEx to Sales Ratio: 15.2%. France EBITDA Growth: 0.9%, with a 1 point margin improvement. Africa and Middle East Revenue and EBITDA Growth: Double-digit growth. Net Income Growth: Close to 7%, excluding specific impacts. Free Cash Flow: EUR1.1 billion. MASMOVIL Revenue Growth: 4.7% in the first half. MASMOVIL Adjusted EBITDA Growth: Close to 13% in H1. Warning! GuruFocus has detected 4 Warning Signs with ORANY. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Orange SA (ORANY) reported a solid EBITDA growth of 3.8%, driven by a 70 basis points margin increase. The company achieved an organic cash flow of EUR1.7 billion, marking an 8% year-on-year increase. Strong performance in the Middle East and Africa with double-digit revenue and EBITDA growth. Efficiency initiatives resulted in a 4% reduction in OpEx in France, contributing to EBITDA growth. Orange SA (ORANY) upgraded its full-year guidance, now expecting EBITDA growth of more than 3%. Negative Points Wholesale revenues declined by 4%, impacting overall revenue growth. Equipment sales decreased, aligning with market trends and impacting revenue. Orange Business Services faced a 5% revenue decline due to portfolio pruning and a competitive IT environment. The French retail market remains flattish with competitive pressure in the low-end mobile segment. Net income growth was partly offset by increased amortization costs related to investments and taxes. Q & A Highlights Q: Can you provide an update on the French market, particularly regarding retail PSTN and your expectations for H2? A: Christel Heydemann, CEO: In H2, we expect flat to small positive growth. The market remains competitive, especially in the low-end mobile segment. Our strategy focuses on convergence, reducing churn, and maintaining strong customer loyalty. We are confident in our EBITDA growth due to our efficiency programs and operational improvements. Q: What are your thoughts on French market consolidation, and what is Orange's position? A: Christel Heydemann, CEO: We believe there is a need for consolidation in France and Europe. While SFR is restructuring its debt, we are ready to engage in discussions. We support in-market consolidation, but it's still early in the process. Q: Can you elaborate on the EBITDA trajectory for the second half of the year? A: Laurent Martinez, CFO: We expect H2 EBITDA growth to be similar to H1, with continued cost savings and efficiency improvements. Retail ex PSTN is projected to have flat to small positive growth, supporting our EBITDA stability. Q: How does Orange plan to manage potential M&A deals, and what impact could this have on dividends? A: Christel Heydemann, CEO: We are committed to value creation through M&A, focusing on France and Spain. We aim to maintain our investment-grade status and meet shareholder expectations. Dividend guidance will be addressed at our Capital Market Day in February. Q: Can you discuss the potential for price increases in France and the impact on OpEx? A: Christel Heydemann, CEO: Price increases will be tactical and focused on value, such as additional services. We have seen some price increases in the low-end market. OpEx reduction is ongoing, with benefits from previous plans and operational efficiencies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
24-04-2025
- Business
- Reuters
France's Orange matches first-quarter expectations on retail boost, confirms guidance
April 24 (Reuters) - French telecom operator Orange ( opens new tab on Thursday reported first-quarter core profit in line with market expectations, citing good performance of its retail activities. Earnings before interest, taxes and depreciation and amortisation after leases (EBITDAaL) - a common metric used by telecom firms to measure core profit - rose 3.2% to 2.48 billion euros ($2.81 billion) in the quarter ended March 31. A company-compiled consensus had forecast profit of 2.48 billion euros. Orange CFO Laurent Martinez expressed confidence in the company's business model due to its minimal exposure to tariffs and the U.S. economy. In a call with reporters, Martinez addressed the potential public listing of their Spanish venture, Masorange, stating it was a possibility but added that current conditions did not favour such a move. The telecom giant also reaffirmed its financial targets for 2025. ($1 = 0.8822 euros)
Yahoo
13-02-2025
- Business
- Yahoo
France's Orange posts Q4 profit beat on rebound in home market
(Reuters) - French telecom operator Orange on Thursday reported a fourth-quarter core profit that beat market expectations, as its home market swung into profit. Group earnings before interest, taxes and depreciation and amortisation after leases (EBITDAaL) - a common metric used by telecom firms to measure core profit - rose 3.2% to 3.25 billion euros ($3.39 billion) in the fourth quarter of last year. A company-provided consensus had expected 3.21 billion euros. The company's core profit in France rebounded for the first time since 2020, driven by price increases, despite facing stiff competition from no-frills brands, diminishing household budgets, price pressure from peers like Iliad and Bouygues, and a decline in demand for broadband services post-pandemic. "Our drivers (in France) have been the retail services, which are up 2.6%. And this is a combination of value strategy with price increases and a very good management of our base," CFO Laurent Martinez said in a call with reporters. Martinez also said the company has been using artificial intelligence for a number of years and is investing 6 billion euros of capex per year. The company currently has 150 active AI use cases, which generated 200 million euros in value in 2024 and expects to generate more than 300 million euros in 2025 with the help of the technology. In November, Orange struck a multi-year partnership with OpenAI in Europe, giving the telecom operator access to pre-release AI models. By the end of 2024, Orange had expanded its FTTH (fiber to the home) connectivity to 60.1 million households globally, reflecting a 9.3% annual increase. Its FTTH customer base increased to 13.5 million, a 14.3% year-over-year rise. Orange confirmed its 2025 targets and raises its organic cash flow target to at least 3.6 billion euros. ($1 = 0.9585 euros) Sign in to access your portfolio
Reuters
13-02-2025
- Business
- Reuters
France's Orange posts Q4 profit beat on rebound in home market
Feb 13 (Reuters) - French telecom operator Orange ( opens new tab on Thursday reported a fourth-quarter core profit that beat market expectations, as its home market swung into profit. Group earnings before interest, taxes and depreciation and amortisation after leases (EBITDAaL) - a common metric used by telecom firms to measure core profit - rose 3.2% to 3.25 billion euros ($3.39 billion) in the fourth quarter of last year. A company-provided consensus had expected 3.21 billion euros. The company's core profit in France rebounded for the first time since 2020, driven by price increases, despite facing stiff competition from no-frills brands, diminishing household budgets, price pressure from peers like Iliad and Bouygues ( opens new tab, and a decline in demand for broadband services post-pandemic. "Our drivers (in France) have been the retail services, which are up 2.6%. And this is a combination of value strategy with price increases and a very good management of our base," CFO Laurent Martinez said in a call with reporters. Martinez also said the company has been using artificial intelligence for a number of years and is investing 6 billion euros of capex per year. The company currently has 150 active AI use cases, which generated 200 million euros in value in 2024 and expects to generate more than 300 million euros in 2025 with the help of the technology. In November, Orange struck a multi-year partnership with OpenAI in Europe, giving the telecom operator access to pre-release AI models. By the end of 2024, Orange had expanded its FTTH (fiber to the home) connectivity to 60.1 million households globally, reflecting a 9.3% annual increase. Its FTTH customer base increased to 13.5 million, a 14.3% year-over-year rise. Orange confirmed its 2025 targets and raises its organic cash flow target to at least 3.6 billion euros. ($1 = 0.9585 euros)
