France Telecom reported a net loss for 2002 of EUR 20.7 billion, due mainly to writedowns for Mobilcom (7.3 billion EURs), NTL (1.7 billion EURs), Wind (1.6 billion EURs), Equant (4.4 billion EURs) and Orange Switzerland (ex-OCSA, 0.9 billion EURs) and other assets in the Ivory Coast and Jordan. Some highlights of report:
- France Telecom's revenues reached EUR 46.6 billion in 2002, an increase of 8.4% growth over 2002.
Net debt stood at EUR 68.0 billion at December 31, 2002, compared with EUR 69.7 billion at June 30, 2002 and EUR 63.4 billion at December 31, 2001.
Wanadoo had a 30.4% increase in revenues and tripled its number of broadband customers in Europe last year
For 2003, CAPEX will be reduced to below EUR 7 billion, representing about 13% of France Telecom's revenues, a level consistent with industry ratios. Key efforts will include better use of France Telecom's long distance network by Equant and Orange, a more selective launch of 3G services by Orange, and a more efficient use of lower cost ADSL equipment.
For 2003, France Telecom has set a target of 3 to 5% revenue growth and double digit EBITDA and operating income growth. The company expects in excess of EUR 3 billion in free cash flow, which will be used to repay debt
Growth in broadband Internet access is expected to offset declines in fixed line telephony in France.
