Orange, the French telecommunications group, is preparing to reveal its second quarter results on Wednesday. Here are the key details you need to know:
Revenue Forecast
According to consensus estimates compiled by the company, Orange is expected to report revenue of 10.81 billion euros ($11.96 billion) for the second quarter. In the same period last year, the company posted revenue of EUR10.715 billion.
EBITDA After Leases Forecast
Analysts predict that Orange will report quarterly earnings before interest, taxes, depreciation, and amortization after leases—a significant profitability metric in the industry—of EUR3.31 billion. This matches the EBITDA figure reported for the year-earlier period.
What to Watch For
Prices
Orange anticipates benefiting from price increases implemented in early 2023 over the coming quarters. Analysts at Berenberg suggest that a key focus for the second-quarter results will be on the success of these recent price rises. Deutsche Bank analyst Roshan Ranjit highlights that Orange’s first-quarter results were impacted by a heightened rate of customer losses. While the second-quarter figures may still reflect some “bill shock,” top-line growth is expected to improve throughout the rest of the year.
Outlook
Orange has provided guidance that suggests EBITDA after leases will experience slight growth in 2023. Additionally, capital expenditure is expected to decrease significantly, while organic cash flow from telecom operations should reach at least EUR3.5 billion. Considering Orange’s track record of delivering on its guidance, Berenberg analysts anticipate no changes to the company’s outlook following the second-quarter results.
