Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

4G/5G

Africa & Middle East Shine for Orange

Article Image
Major mobile operator Orange says its Africa and Middle East business was a major growth contributor in 2018, contributing "almost half of the Group's growth in 2018."

In the fourth quarter of last year, total revenues from Orange's Africa & Middle East market grew by 5.2% year-on-year to reach €1.36 billion (US$1.54 billion), while revenues for the full year 2018 reached €5.2 billion ($5.9 billion), up by 5.1%.

The company highlighted in its financial statement that the markets it recently entered, especially Burkina Faso and the DRC, have reported strong growth in revenues, up by 14.1% and 13.5% respectively.

In both cases Africa & Middle East's growth outpaced all the other business units in Orange: This part of the world is now contributing 12.5% of Orange's total business.

When it comes to profitability, adjusted EBITDA (earnings before a range of regular and one-time costs) in Africa & Middle East grew by 5.2% during 2018 to reach €1.67 billion ($1.9 billion), contributing almost 13% of the group total. The EBITDA margin of 32.1% is higher than that of Spain and the rest of Europe and only bettered by the results of France, Orange's home market.

The main driver for Orange's growth in Africa is its expanding mobile subscriber base. Orange is now serving more than 120 million mobile users in the Africa & Middle East region.

The growth in 4G customers was impressive, rising by almost 50% to reach 16.7 million across the 12 African and Middle Eastern markets where 4G has been deployed. The number of fixed line broadband customers grew rapidly towards the end of the year to break through the 1 million threshold at the end of 2018. Orange has been investing in its fiber networks, most notably in Jordan, Morocco, and Cτte d'Ivoire.

Though no income number is disclosed, Orange Money's momentum has continued. The total customer base grew by 15% to reach 36 million in 2018: Of those, 14 million (or 39% of the total) were monthly active users, up from 11 million by the end of 2017.

Orange in general reported solid fourth quarter and full year financial results, but its cautious profit growth outlook for 2019, impacted mainly by competitive conditions in France and Spain, sent its share price down by 2.4% initially before it recovered late Thursday to end the day flat at €13.65 on the Paris exchange.

— Wei Shi, Site Editor, Connecting Africa

Innovation hub

Story

Omdia View: February 2024

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Key adoption areas for machine learning in Africa

ICT analyst Francis Hook identifies some of the key sectors that could be positively impacted by machine learning, including education, government services, healthcare and climate tech.

More Innovation hub

Latest video

More videos

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Sponsored video

More videos

Industry announcements

More Industry announcements

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Guest Perspectives

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

Story

Omdia View: September 2023

By Omdia Analysts

Highlights in September 2023 in the Middle East and Africa included more 5G spectrum licenses, vendor and operator strategies, and partnerships – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002