Orange Romania posts EUR 257.4 turnover in Q1 2020, down as against the same period last year
According to the financial results available for Q1 2020, Orange Romania has registered a turnover of EUR 257.4 million, which means a decline by 2.9% as against the same period in 2019, amid moderate sales of equipment prompted by the COVID-19 crisis, the company announced in a press release today.
At March 31, 2020, Orange Romania provided mobile, fixed and TV services for 10.768.700 customers, up by 1% as the end of 2019.
Fixed line services continued the positive evolution in the past quarters. Therefore, at the end of March 2020, Orange Home TV counted over 538,000 customers, up by 4% compared to Q1 2019, while fixed broadband lines had 362,900 clients, up by 20% as against the same period in 2019.
In the Europe segment (which includes Belgium, Luxembourg, Moldova, Poland, Romania and Slovakia) rose 0.3% in the 1st quarter. This increase is the result of a solid increase of 4.3% in revenues from retail services in the 1st quarter, accelerating from a 2.4% increase in the previous quarter. In this segment, revenues from convergent offers continued to grow strongly, up 25.3%. Mobile-only revenues were down 2.7% in the 1st quarter impacted in particular by migrations towards convergence. Fixed-only revenues declined 5.2%, an improvement compared to the 8.0% decrease in the 4th quarter of 2019. Revenues from IT and integration services continued to increase strongly rising 51.0%, compared to 13.4% in the previous quarter, driven primarily by Poland. Wholesale revenues recovered growing 0.6% due to better MVNO momentum, which offset the decline in mobile termination rates and the end of domestic roaming agreements. Revenues from equipment sales decreased 8.3% impacted by a slowdown in the market and, since March, the closure of three quarters of the stores in that region.
In terms of sales performance in the 1st quarter, the mobile contract base excluding M2M recorded 28,000 net adds, a better performance than in the 1st quarter of 2019 (+26,000). Broadband growth drivers were confirmed with the FTTH customer base growing by 54,000 net adds in the 1st quarter.
At the European country level, Poland posted a 7th consecutive quarter of growth, up 0.9%, driven by a 5.1% acceleration in retail services. Revenue growth in Belgium and Luxembourg was 1.9% in the 1st quarter, down from the previous quarter’s growth of 4.8%, still driven by momentum from retail services (4.6%) and convergent services in particular. Central Europe revenues decreased 1.7% in the 1st quarter, compared to an increase of 0.5% in the previous quarter, mainly due to lower mobile call terminations in Romania.
Overall, Orange Group revenues were up 1.0%1 year on year in the 1st quarter, driven by solid growth in Africa and Middle East and improvement in the Enterprise, France and Europe segments.
Revenues in Africa and Middle East grew by 6.2%, and in France by 0.5%, with a 2.2% increase in retail services excluding PSTN. Enterprise revenues grew by 0.8% and Europe by 0.3%. Spain revenues declined by 2.4%.
This momentum occurred against the backdrop of the very beginning of the Covid crisis, which led to a decrease in equipment sales due to the closure of three quarters of Orange stores in European countries from mid-March and a decline in roaming revenues.