Orange Romania posts declining turnover on Q2 2019

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In the 2nd quarter of 2019 (April-June), Orange Romania has posted a turnover of EUR 268.5 million, down by 2.4% as against the same period last year, mainly due to the amending Mobile Termination Rates and due to the slight decline of the device sales.

On June 30, 2019, Orange Romania offered mobile, fixed and TV service for 10,736,700 customers, up by 2 percent as against the second quarter of last year. The fixed services continued the positive trend in the previous quarters. Therefore, at the end of June, Orange Home TV counted over 528,000 clients, up by 17% compared to Q2 2018, while the broadband services had 317,700 customers, up by 35% as against Q2 2018.

Orange has also continued infrastructure investments in the 2nd quarter of this year and the pace of the 4G coverage stayed constant. Therefore, at the end of June, 97.15% of the population and 100% of the urban residents had access to the widest 4G network in Romania. At the end of June, residents of 1,000 more localities and cities had access up to 500Mbps, with the 4G coverage reaching 51.98% of the country.

On a growing competitive market, our efforts are focusing on providing the best convergent services for clients, on the IT&C integrated solutions for business and on the increase of the mobile financial services, as well as on developing the digital abilities and on the Agile working method in teams. Moreover, they lay the foundations for access to new growth opportunities in the society”, said Liudmila Climoc, CEO al Orange Romania.

According to a Orange press release, the company’s Europe revenues increased, driven by rising retail services as a result of convergence. On a comparable basis, Europe revenues (which consists of Belgium, Luxembourg, Moldova, Poland, Romania and Slovakia) rose 1.2% in the 2nd quarter and 1.3% in the 1st half.

This increase was the result of solid growth in retail services, but was still impacted by the decline in wholesale services.  Retail services revenues grew 2.5% in the 2nd quarter, a slight slowdown compared to the 3.6% growth in the previous quarter. In this segment, convergent revenues continued their robust growth, up 35.5% in the 2nd quarter and 39.0% in the first six months.

Mobile-only revenues declined 2.1%, impacted particularly by migrations to convergent offers, which now represent 17% of the total mobile contract base6. Fixed-only revenues declined 8.5% in the 2nd quarter.

Nonetheless, the broadband growth drivers are in place with a FTTH customer base which grew by a little over 290,000 customers over the last 12 months (reaching a total of 914,000 customers).

Revenues from IT and integration services continued to increase strongly, up 22.8% in the 2nd quarter, driven principally by Poland. Wholesale revenues were down 5.8% in the 2nd quarter, but this was an improvement compared to the 1st quarter (down 8.1%).

At the country level, Poland reported the fourth consecutive quarter of revenue growth (up 2.0% in the 2nd quarter), due in particular to the excellent performance of convergence services (up 21.4%).

Revenues in Belgium and Luxembourg increased 1.9% in the 2nd quarter; all segments of retail revenues (convergent, mobile-only, fixed-only, IT & integration) rose, but wholesale revenues were still down 13.0% due to the impact of the termination of MVNO contracts. Revenues from Central Europe declined 0.5% in the 2nd quarter, an improvement on the 1.9% decline in the previous quarter; although the performance of retail services improved (up 2.5%), the overall decline was related to pressure on wholesale services.

 

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