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

Orange Trumpets Africa Boost in Q2

Article Image
Orange hailed the recovery of its business in the Middle East and Africa (MEA) segment as one of the key factors that helped improve the overall group performance in the second quarter, reporting a 1.4% year-on-year increase in group revenue, to €10.2 billion ($11.9 billion), in the three months to June.

As highlighted by Stéphane Richard, chairman and CEO of the Orange Group, "the acceleration seen in the group's growth was confirmed by the first-half results, and in particular the performance in the second quarter, driven by France, Europe and Africa and the Middle East."

The group will no doubt be relieved by the improvement in the MEA segment following a disappointing first quarter, when revenues across the region were up just 0.7% in the quarter, to around €1.2 billion ($1.4 billion), compared with the year-earlier period. In the second quarter, revenue rose by 2.7% on a comparable basis to €1.25 billion ($1.46 billion), led by the Côte d'Ivoire group, Sonatel group and Morocco. (See Orange Disappointed by Africa Biz in Q1.)

Although the rate of increase is above the 2.3% that Orange (NYSE: FTE) reported in the same quarter of last year, it is well below the 4.4% reported for the first quarter of 2016 and means the company is still at risk of missing its ambitious growth targets for the region. In 2015, Orange executives announced plans to increase revenues in Africa by 20% between 2015 and 2018. (See Orange's Africa Targets in Doubt After Sales Slowdown and Orange Aims for 20% Sales Growth in Africa.)

In the first half of the year, revenue in MEA increased 1.7%, to €2.49 billion ($2.91 billion), including a 3.6% increase from mobile services, to just over €2 billion ($2.3 billion), and an 8.9% rise in mobile equipment sales. Adjusted EBITDA increased by 0.9% in the period, to €764 million ($893 million). Analysts from Jefferies International also noted that EBITDA was slightly below expectations, as it was 3.2% below consensus estimates for the first half. Reflecting the ongoing rollout of 4G networks in the region, capex rose 16.5%, to €428 million ($500 million).

Orange said it has deployed 3G in all 21 countries within the region, with 4G now also available in 11 countries (Botswana, Cameroon, Côte d’Ivoire, Guinea Bissau, Jordan, Liberia, Madagascar, Mauritius, Morocco, Senegal and Tunisia). In the first half of 2017 it opened 2,000 new sites, mainly in Egypt, Morocco, Côte d’Ivoire and Cameroon. Orange Egypt is in the process of rolling out 4G services following the acquisition of a license in October 2016.

In terms of customer numbers, mobile net additions in MEA improved to 3.9 million in the second quarter following 2.7 million additions in the first quarter. The total number of mobile subscribers in the region stood at 127.2 million by the end of June. In addition, Orange Money had 32.4 million customers and an active base of 10 million customers at 30 June 2017.

Orange's business in MEA appears to be largely sustained by newer areas of business, such as Orange Money as well as mobile data and B2B revenue. Orange said data revenue increased 33% year-on-year in the second quarter, while revenue from Orange Money increased by 65% and B2B sales were up 6%.

— Anne Morris, contributing editor, Connecting Africa

Innovation hub

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

Story

Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

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