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.

Business of Tech

Orange hails 'outstanding' Q2 in Africa and Middle East

Article Image
The Africa and Middle East region remains a major growth driver for the France-based Orange group, with group CEO Stéphane Richard describing its performance as "outstanding" in the second quarter (Q2) of 2021.

Orange said Q2 revenue growth was double that of the first quarter.

"With the exception of the Central African Republic, all countries were up, including 13 which posted growth of more than 10% (out of 16 consolidated countries)," the group said in a statement.

Revenue in the region increased by 14.4% to €1.55 billion (US$1.84 billion) on a comparable basis in Q2. In the first six months of 2021, revenue increased by 10.7% to just over €3 billion ($3.57 billion), and earnings before interest, taxes, depreciation and amortization after leases (EBITDAaL) was 17% higher at €1.05 billion ($1.25 billion).

Orange noted that EBITDAaL grew faster than revenue for the sixth consecutive quarter.

Orange said the growth was driven by voice, mobile data, fixed broadband and Orange Money. The mobile customer base grew 7% year-on-year (YoY) to 132.2 million customers. The number of fixed broadband customers increased by 29.6% to 1.9 million customers.

Orange Money also continued on an upward trajectory. The customer base grew to 22.6 million active customers, a 15.4% increase YoY.

Looking ahead, Orange anticipates a compound annual revenue growth rate of around 6% from now to 2023 in the Africa and Middle East segment, with double-digit EBITDAaL growth and organic cash flow growth that will be faster than that of EBITDAaL.

Source: Orange results at June 30, 2021.
Source: Orange results at June 30, 2021.

Accelerated growth at group level

At group level, the operator reported a 2.6% increase in Q2 revenue to €10.55 billion ($12.55 billion) on a comparable basis. That followed a more moderate rise of 0.5% in first quarter (Q1) revenue, and a 0.2% drop in the fourth quarter of 2020.

Orange said growth was fueled in particular by equipment sales, which were up 18.4%, and IT and integration services, which rose 8.1%.

Group EBITDAaL was still in decline, falling by 0.4% to €3.27 billion ($3.89 billion). However, Richard said this represented a "near stabilization of EBITDAaL" following a 0.3% decline in Q1 and a 2.3% drop in Q4 last year.

In the first six months of the year, revenue increased by 1.5% on a comparable basis to €20.87 billion ($24.7 billion), while EBITDAaL was 0.4% lower at €5.83 billion ($6.9 billion).

However, the group posted a net loss of €2.6 billion ($3 billion), which it blamed on an operating loss of €1.75 billion ($2 billion). That in turn was owing to the recognition of a goodwill impairment in Spain of €3.7 billion ($4.4 billion).

The group also noted that capex rose by 22.8% in the first half, "driven by investments in fiber and in Africa and Middle East, in line with the objectives for 2021".

*Top image is of Orange group CEO Stéphane Richard (Source: Orange).

— Anne Morris, contributing editor, special to Connecting Africa

Innovation hub

Story

Orange Ventures, Digital Africa promise more funding for startups

Orange Ventures and Digital Africa are teaming up to invest more in tech startups in Africa and the Middle East through Digital Africa's Fuzé program and the Orange Digital Center network.

Story

Hot startup of the month: Rwanda's Ampersand

Connecting Africa's hot startup this month is Rwanda's Ampersand, which designs, builds, and manufactures electric motorcycles and battery packs for motorcycle taxis.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

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

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

Guest Perspectives

Story

Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.

Story

Leveraging agritech to build resilience against climate change

By Francis Hook

ICT analyst Francis Hook discusses agritech in Africa and how the agricultural sector is using technology to build resilience against the negative effects of climate change and to ensure food security.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002