Growth in 2019 revenues for Orange
Orange Romania has announced the 2019 annual results, saying that during October-December last year, it posted a turnover of EUR 299 million, up by 2.4% as against the same period in 2018. The total turnover for 2019 is EUR 1.112 billion.
At December 31, 2019, Orange Romania offered mobile, fixed, and TV services for 10,941,000 customers, up by 1.7% as against Q4 2018, a press release informs.
Fixed services continued their positive evolution in the previous quarters. So, at the end of December 2019, the TV service Orange Home TV was counting over 540,000 clients, up by 7pc as against Q4 2018, while the fixed broadband services had 352,000 clients, up by 23% compared to the previous period of 2018.
Overall, revenues for Europe (consisting of Belgium, Luxembourg, Moldova, Poland, Romania and Slovakia) rose 1.4% in 2019 and 1.7% in the fourth quarter, an acceleration compared to the 1.4% of the previous quarter. This increase is due to solid growth in retail services, but was still impacted by a decline in wholesale services. Retail services revenues grew 2.9% in 2019, an acceleration compared to the 1.7% of 2018. In this segment, revenues from convergent offers continued to grow strongly, up 34.0% in 2019 and 28.5% in the fourth quarter.
Mobile only revenues declined 2.1% in 2019 and 2.2% in the fourth quarter, affected in particular by migrations towards convergence offers which now account for 19% of net mobile contract additions.
The mobile contract base, excluding M2M, recorded 101,000 net additions in the fourth quarter, a better performance than the third quarter (86,000). Fixed only revenues declined 7.2% in 2019 and 8.0% in the fourth quarter. Nevertheless, the foundations for broadband growth were established with the FTTH customer base up 35.7% in 2019 to 761,000 customers.
Revenues from IT and integration services continued to increase strongly, up 20.3% in 2019 and 13.4% in the fourth quarter, essentially due to Poland. Wholesale revenues decreased 6.5% in 2019 and 7.5% in the fourth quarter, with the decline due mainly to the loss in 2018 of an MVNO contract in Belgium.
At the European country level, Poland reported the sixth consecutive quarter of revenue growth (up 2.1% in 2019). In addition to the success of convergence, growth in Poland was also driven by better equipment sales, growth in other revenues (energy offers) and the stronger performance of IT and integration services.
Revenue growth in Belgium and Luxembourg was 3.3% in 2019 and 4.8% in the fourth quarter, accelerating from 2.5% in the third quarter and 2.8% in the first half of the year. This momentum was the result of the acceleration in net mobile contract additions and convergence. The countries of Central Europe had a revenue decline of 0.7% in 2019 but with growth of 0.5% in the fourth quarter, an improvement on the 0.9% decrease recorded in the previous quarter.