France Telecom reported consolidated revenues for the first half of the year of EUR 23.2 billion, a year-on-year increase of 4.2% on a comparable basis, driven by strong performance by Orange, which recorded an 11.2% increase in revenues on a comparable basis and by Wanadoo, which saw revenues rise 11.9% on a comparable basis. Growth in wireless and Internet businesses offset the decline of 1% on a comparable basis in revenues from the Fixed Line, Distribution, Networks, Large Customers and Carriers segment.
Some highlights:
- ADSL: The total number of ADSL access lines more than doubled in one year, reaching 4.7 million at 30-June-2004 (including unbundled lines and Wanadoo sales), compared with 2.2 million a year earlier. Excluding unbundled lines, ADSL access lines totaled 4 million, versus 2.1 million a year earlier.
- Wanadoo: There was an 80% increase in new broadband subscribers in Europe. Some 35.4% of Wanadoo customers in Europe now have broadband
- Consumer Services: Revenues declined 4.5% on a comparable basis, reflecting lower prices (free unlisted number service and lower rates for calls to cell phone numbers), coupled with loss of market share for telephone calls. Flat rate call time packages nevertheless continued to experience rapid growth, totaling nearly 10 million customers at end June 2004, an increase of 26% over end June 2003.
- Business Services: Revenues declined 4.2% on a comparable basis due to the decrease in voice telephony. Revenues from business network services remained stable as the migration to IP technologies (IP VPN services) accelerated. Hosting and outsourcing services also experienced rapid development and represent a significant growth driver. Revenues from voice telephony services for Businesses declined 9.7% due to lower prices and loss of market share for telephone calls.
- Network and Carrier Services: Revenues grew 14.5% growth on a comparable basis due to the strong increase in unbundling of telephone lines and wholesale ADSL access sales. Revenues from international carrier services also contributed to this increase.
- Market Share: France Telecom's market share (measured through interconnection) of the French local telephony traffic is 72.5%, and 59.7% on the long distance telecommunications market.
- CAPEX: EUR 2.1 billion EURs for H1 2004, a decrease of 1.1% on a comparable basis. The CAPEX/revenues ratio was 8.9% . France Telecom maintains its objective of a CAPEX/revenues ratio of approximately 11% for full year 2004, since investments are historically higher in the second half of the year.
- Free cash flow: EUR 6 billion in H1 2004, compared with EUR 4.5 billion in H1 2003.
