Sunday, August 1, 2021

Orange presents its 2023 ambitions in 3 areas

Orange outlined its ambitions for three of its growth drivers: Orange Africa & the Middle East, Orange Business Services and Orange Cyberdefense.

Orange Africa & the Middle East: achieve annual double-digit EBITDAaL growth by 2023

For more than 20 years, Orange has developed Africa & the Middle East into a key area for sustainable growth. Orange currently offers digital services in 18 countries in the region. By 2023, the Group aims to achieve an average annual growth rate (CAGR) in revenues of around 6%, double-digit EBITDAaL growth and an even faster increase in its organic cash flow.

Orange Business Services: by 2025, more than 55% of Orange Business Services’ revenue will be generated by digital, integration services and new connectivity services

Orange Business Services is a trusted player in the digital transformation of businesses and continues its transformation as a network-native digital-services company. IT and integration services (including cyber activities) and new connectivity services represented 41% of its revenues in 2020, while its cost optimization efforts continue. The Group's strategy on the B2B market remains focused on three main areas of growth: digital (cloud, digital & data, IoT, cyber), integration services, and new connectivity services. By 2025, Orange Business Services will generate more than 55% of its revenues from these segments by strengthening its main differentiating factors. Orange Business Services has demonstrated remarkable resilience compared to its peers in the face of the pandemic and has returned to sustainable revenue growth. The Group expects to achieve an average annual growth rate (CAGR) in revenue of around 2% per year in 2022 and 2023, and a return to EBITDAaL growth in 2022, which should then accelerate in 2023.

Orange Cyberdefense: the Group aims to achieve double-digital revenue growth and an operating margin about double that of today.

Cyber security has become a critical factor and an essential requirement for every company so as to guarantee a safer digital society. Orange Cyberdefense has been working to secure the infrastructure and digital assets of its B2B customers since 2014. As one of the European leaders in cyber security, Orange Cyberdefense will take steps to seize new opportunities for external growth through the possible creation of a standalone subsidiary. The Group aims to achieve double-digital revenue growth for Orange Cyberdefense, higher than that of the market, and an EBITDAaL margin in the medium term about double that of today.

A full day of archived presentations is online:

Arianespace launches Eutelsat QUANTUM satellite

Arianespace successfully launched Eutelsat's QUANTUM satellite into Geostationary Transfer Orbit using an Ariane 5 rocket from the Guiana Space Center in Kourou, French Guiana.

The satellite, which was built by Airbus Defence and Space offers in-orbit reprogrammable features that will enable government and mobility customers to actively define and shape performance and reach.The satellite provides coverage of the MENA region and beyond.

Commenting on the agreement, Pascal Homsy, Eutelsat’s Chief Technical Officer said: “Our congratulations to Arianespace and the Guiana Space Center teams for successfully launching the EUTELSAT QUANTUM satellite. The collaboration between Eutelsat, ESA, the UK Space Agency and Airbus Defence and Space on this ambitious satellite program has resulted in a world-first. EUTELSAT QUANTUM will supply services with unprecedented in-orbit reconfigurability in coverage, frequency and power, allowing complete mission rehaul, at any orbital position. It is a testimony to the innovative spirit and expertise of the European Space industry.”

Canada completes 3500 MHz band auction

The government of Canada raised a record C$8.9 billion (US$7.2 billion) through the auction of 1,504 licenses of 3500 MHz spectrum. The following provisional results were announced.

Xavier Niel bids EUR 182 per share to privatize Iliad

Xavier Niel, the founder and controlling shareholder of iliad, launched a simplified public tender offer for iliad valued at 182 euros per share, representing a premium of 61.0% on the closing share price at July 29, 2021.

Xavier Niel and iliad’s managers and long-standing shareholders who have undertaken to tender their shares to the offer, and/or transfer their shares to Xavier Niel’s holding companies, directly and indirectly own 74.9% of iliad’s share capital and 83.6% of its voting rights.

Xavier Niel, iliad’s reference shareholder, said: “I founded iliad in 1999 and I’m very proud of what the Group has grown into and the value it has created for all of its shareholders. Iliad is now entering a new phase in its development, requiring rapid changes and major investments which will be easier to undertake as an unlisted company. Our ambition for iliad is to accelerate its growth to make it a leading telecommunications player in Europe.”

Thomas Reynaud, Chief Executive Officer of iliad, stated: “Iliad’s management team welcomes this further demonstration of Xavier Niel’s commitment to the Group. This operation will secure iliad’s strategic independence and help us pursue our business development plan based on major investments in 5G and fiber. It’s a question of growth, trust and confidence. I’m very excited at the idea of starting a major new chapter in iliad’s history, with the full support of Xavier Niel and the Group’s 15,000 employees.”

Separately, iliad reported its growth for Services revenues reached 6.3% in the second quarter, up on the 4.8% increase recorded for the first three months of the year. Excluding the consolidation of Poland-based Play, the Group's EBITDA rose by 17% and operating cash flow edged up by a modest €22 million, with the increase in capex in France offsetting a large portion of the decrease in ltaly's operating losses.

In France, growth picked up pace in the second quarter, coming in at 5.0%, with a rise in revenues for the Fixed business - led by the commercial and financial success.

Nokia's Q2 net sales up 4% yoy, growth across all business groups

Nokia announced Q2 net sales of EUR 5.313 billion up 4% yoy on a reported basis and up 9% yoy on a constant currency basis, driven by growth across all business groups, with particular strength in Network Infrastructure. Q2 comparable diluted EPS was EUR 0.09 and reported diluted EPS was EUR 0.06.

Based on the strong performance, Nokia increased upwards its full-year outlook. The company now expects a comparable operating margin between 10-12% for full-year 2021, compared to the previous range of 7-10%. 

Pekka LUNDMARK, President and CEO of Nokia, states:

"I am delighted that our strong start to 2021 continued in the second quarter. Our constant currency sales growth of 9%, combined with good cost control, enabled us to deliver a comparable operating margin of 12.8%. Even excluding a one-time software deal in Mobile Networks, we saw good underlying progress in operating margin. We are already seeing the benefits of our new operating model which helped us to deliver such a strong financial performance."

"The highlight of the second quarter was the Mobile Networks launch of our new AirScale baseband and radio products with up to 75% better power efficiency helping to reduce our environmental footprint and the lightest 32TRX massive MIMO active antenna in the market. In Network Infrastructure we sustained double-digit growth and have a series of product launches ahead in the second half to further strengthen our differentiation. Cloud and Network Services is making good progress on its portfolio rebalancing and Nokia Technologies continues to scale with two licensing agreements with automotive manufacturers including Daimler."

Some highlights:

Telefonica to acquire Cancom UK&I for managed services

Telefónica Tech agreed with Cancom Group to acquire Cancom UK&I for EUR 398 million euros valued at a multiple of 13.5x EV/OIBDA (based on 2021E). 

Telefónica Tech said the deal will strengthen the capabilities of its Cloud and Cybersecurity division in the UK and Ireland. Cancom UK&I has 600 professionals, joining the Telefónica Tech team, and a broad and strong digital services portfolio including professional services and managed services in advanced IT, cybersecurity and multi-cloud solutions.

Cancom UK&I is a certified Microsoft Gold Partner for 9 competencies, including Azure Expert MSP, CSP Direct, LSP, Surface Silver Partner and FastTrack and it also has other relevant partnerships with leading technology vendors. Cancom UK&I reached EUR 155 million in revenues in 2020, of which Managed and Professional Services represent more than 50% and are growing differentially. Cancom UK&I will reach EUR 190 million of revenues in 2021 with an adjusted EBITDA margin of 15.4% and revenues related to Managed Services and Professional Services revenues project differential growth rates of 20% and 26% CAGR18-21, respectively.

José Cerdán, CEO of Telefónica Tech, said: “Having the Cancom UK&I talented team join Telefonica Tech, will strengthen our Cloud and Cybersecurity capabilities in the UK and Ireland, with a strong focus on Professional and Managed services, and combined with our value proposition and global reach allows us to position ourselves as the strategic partner for our B2B customers in their digital transformation strategy".