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


Customer experience is telco's next 'battleground'

South African social data and insights company BrandsEye thinks its unique blend of AI and human intelligence could help Africa's telcos face a battleground around customer service.


Liquid, Project Taara beam broadband across Congo River

Liquid Intelligent Technologies and Alphabet's Project Taara have found a way to bridge a particularly stubborn connectivity gap between Brazzaville in the Republic of the Congo and Kinshasa in the DRC.

More Innovation hub

Latest video

More videos

Guest Perspectives


Omdia View: August 2021

By Omdia Analysts

Omdia's analysts provide context and analysis about MTN's decision to exit Syria and not bid again for an Ethiopian license, as well as 5G news from Mauritius, Ghana, Mayotte and Reunion.


Research Bites: Blockchain potential for SA agriculture

By Roberto Mavilia and Roberta Pisani

This article, in collaboration with the African Journal of Science, Technology, Innovation and Development explores how blockchain can be used in the agricultural sector to help improve production and distribution processes.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

AfricaCom perspectives


Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.


Accelerating women in STEM: In conversation with GirlCode's Tinyiko Simbine

GirlCode co-founder and CFO Tinyiko Simbine talks about why it's important to help girls and young women excel in science, technology, engineering and mathematics (STEM) fields.


How Poa Internet is unlocking meaningful connectivity in East Africa

Poa Internet's CEO Andy Halsall shares his views on what it takes to develop last-mile connectivity and get Africans online in a meaningful way.

More AfricaCom perspectives

Upcoming events

More Upcoming events

Flash poll

All polls

Archived webinars

Digital Skills Enhancing Human Capital

As nations begin to look beyond the crisis of COVID-19 to the new future of work, an opportunity to leverage this disruption as a powerful catalyst for positive change exists – one that could reshape the future and provide more accessible, fair, and impactful digital education and training.

In this webinar, we focus on how digital skills can enhance human capital and help realise the extraordinary potential of intelligent, 4IR-ready African workforces.

Key topics include:

  • Importance of having more than basic digital skills – upskilling & reskilling
  • Championing access to online educational resources – affordable and reliable internet, electricity and hardware
  • Future career options for industry specific roles: Cloud, AI, industrial IoT, big data analytics
  • Education 4.0: How updating educational curricula is key for growth
  • The importance of progressive, industry-driven educational policy frameworks

More Webinars

Sponsored video

More videos

Like us on Facebook

Newsletter Sign Up

Sign Up