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 the Key 'Growth Driver' for Orange

Article Image
The CEO of major international telco Orange has praised the operator's Africa and Middle East business as key to its growth during the second quarter of 2019.

Orange reported a return to group revenue growth in the second quarter, up just 0.5% (on a comparable basis) to €10.38 billion ($11.56 billion).

The star of the show, though, was the operator's Africa and Middle East unit, which reported a 5.8% year-on-year increase in revenues to €1.39 billion ($1.55 billion) for the three months to the end of June.

That's slightly better growth that in the first quarter, when Orange's Africa and Middle East (AME) operation, which offers services in 19 markets across the region, reported 5.3% year-on-year growth. (See Orange Boasts Strong Q1 in Africa, Middle East.)

The vast majority of the revenues are driven by retail mobile services, which accounted for just over €1 billion ($1.16 billion) in revenues, up by 7.2% on a comparable basis. Of note also is that fixed-line retail service revenues grew by more than 15% to €123 million ($137 million) in the quarter, but wholesale revenues dipped by 7.5% to €194 million ($216.5 million), due mainly to "reduced volumes in direct international incoming traffic." The fixed-line growth was driven by demand for broadband access: Orange now has 1.1 million fixed broadband customers across the AME region.

Source: Orange
Source: Orange

"I would like to highlight the very good performance of our operations in Africa and the Middle East which are, more than ever, an important growth driver for Orange," noted Stéphane Richard, chairman and CEO of Orange Group, in the operator's earnings report.

And in a nod to its own M&A strategy, Orange noted that about a quarter of its AME growth during the second quarter came from "the four operations acquired in 2016" -- Democratic Republic of the Congo, Burkina Faso, Liberia and Sierra Leone.

The retail mobile service revenues growth in AME was mainly driven by demand for data services: Orange now has 19.9 million 4G customers in the region, more than double the number it had a year earlier, while the Orange Money active customer base rose by 6% compared to the first quarter to 16.5 million customers.

Orange noted last month during a briefing in London that its geographic spread and focus on supporting the growing demand for mobile data services had enabled it to continue growing its business in the AME region despite turmoil in some markets and a decline in traditional voice services. (See Orange Keeps MEA Sales Growth Target at 5% as Focus Shifts.)

Alioune Ndiaye, CEO of Orange Middle East and Africa, took to Twitter to hail the performance of his team:

In total, Orange has 122.5 million mobile customers across the AME region, having added 2.2 million customers during the second quarter.

For the first half of the year, Orange reported a 5.6% growth in AME revenues to €2.74 billion ($3 billion), while earnings before interest, tax, depreciation, amortization and leases (EBITDAaL) for the period grew by 10.5% to €868 million ($969 million) compared with the first six months of 2018.

— Ray Le Maistre, Editor-in-Chief, Light Reading for Connecting Africa.

Innovation hub

Story

MTN tackles SA power woes with wind & solar hybrid project

MTN South Africa has launched an integrated wind and solar renewable energy generation project as part of its Net Zero efforts.

Video

Interview: Qualcomm execs on mentorship for African startups

Qualcomm Technology VP for Engineering, Sudeepto Roy, and Elizabeth Migwalla, VP for Government Affairs, join Connecting Africa for a video interview about Qualcomm's Make in Africa Mentorship Program.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

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.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up