ORAN - Earnings call transcript Q3 2021

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Ramon Fernandez

Good morning, and welcome to our Q3 2021 results presentation, and we are going to jump to Slide 4, which presents the key highlights of the quarter.

You can see that Africa, Middle East is still the main growth engine for group's revenue with a double-digit top line increase this quarter.

You can see that in France, retail services kept accelerating at plus 3.7%, excluding PSTN, and we have extended our 5G coverage reaching close to 700 municipalities. In Spain, a new milestone in the recovery action plan has been reached with the simplification of our portfolio from 5 to 3 brands, while 1 Spanish out of 2 has coverage with our 5G network.

The other European countries pursued their solid commercial momentum, fueling retail service revenue growth at plus 5.7% this quarter while completing 2 key strategic projects, namely the TKR acquisition in Romania and the Polish fiberco.

delivered we CyberDefense, development most of to and industry. obtaining certification IT the operational segment, relays our demanding with with enterprise Information systems to in Orange French the the Siemens prepare the with one market opportunities OBS the partnering pursue Agency systems to of the future growth cybersecurity Systems with Regarding Security the develop ANSSI; linked by technology of of the convergence now XXX% value done keep over of we all which least, X.X million we in Bank, via acquisition not while reaches offer. our but Last France own paid the quarter customers' with Orange a customers, on focus nearly Africa XXX,XXX Orange now Coast. customers counts Ivory Bank in just track. is to confirm A on word that X, on our infrastructure Slide everything projects,

joint next Orange weeks, we has this been Our in both Poland the finalized will in FiberCo summer. venture complete, TOTEM. Concessions and And

quarter X.X% to effect €XX.X in sales achievements. exit. our at slowdown of linked peak billion, posted after base negative lockdown revenues a equipment a by this in down on and to the QX Regarding We the France financial co-financing due

countries co-financing, services an quarter Excluding have quarter European this X.X%, acceleration by X.X%, impacted €X.X by would declined Middle group other Africa, of grown driven retail EBITDAaL The in East this France. by at revenues and billion co-financing. by

€X.X our to guidance in group this due in to €X.X commercial XXXX, with full momentum solid by HX X% a context and pandemic EBITDAaL and thanks After between €X.X Excluding quarter X.X%, impact, efforts. a by year billion, decreased billion this catch-up improved strongly of line billion. eCapEx cost-efficiency to in the the

co-financing service X.X% starting our business with almost of strong where stable, proceeds. to be at enables plus let's excluding PSTN, acceleration excluding France, Now to revenues, the revenues review, turn retail

period The X.X%, In basically price increased take we is mobile of our a of level. for at commercial quarter, France. improving. million, a strong and this this revenues context, without but the ARPU very so is still €XX while XXX,XXX reached France churn still of stable low the base low pursued competitive particularly slight mobile was a co-financing, reaching effect with points previous If back-to-school minus net in adds, trend which you that away momentum decline are

volumes net The continued XXX,XXX convergent Our solid Orange of mainly from brand fiber as and for offers broadband adds reflected came fueled continued QX, the trend customer in BXB by with also net fixed XX,XXX base. commercial well the our growth adds.

we the actions portfolio Orange brand ARPU. migration of and on Orange offer of traction customers more-for-more our quarter, improvement a ARPU launched the renewed early order €X. which at new following As new group. this for of context, of offer strengthen the attractiveness October, in convergent new The brand, accelerate In year. the we represents both to enhancing X.X% plus plus base sequentially accelerated are fiber to main broadband more than Leveraging customer which reminder, customers for than a half subscribes part our X the on our a to more in this fixed reshuffled, the our first core XG,

broadband adds fiber. turn This after compared of wholesale during decrease of to after in adds. of by posting positive quarter fixed all the such now MXM, last and by QX equipment in revenues and countries as the XXX,XXX a with performance is in excluding positive impacted Total in activities slowdown lockdowns. are Spain catch-up and low in a net mobile out by and Let's adds, broadband fixed we traffic XXX,XXX international down in commercial margins Europe, Poland a end the X.X% QX, sales net which supported achieved to with solid net QX; plus where uptrend of fixed XX,XXX,

improving European call recovery the other supported X%. Spain trend mentioning this Europe a business the at minus the growth Meanwhile, the on which slightly closed an we are X%, in countries, Spain, to It's by of we a grew X, worth retail the TKR Excluding in trend revenue that in at services by and what acquisition continue our of footprint convergent also quarter, allow plus rest X.X%. Romania, developing strategy. will us fixed of accelerated

Spain, with track to momentum. is Let's on move plan positive where commercial the a recovery

a current and net all promotional period. football We season, segments on adds despite its contracts, these post respectively. €X the the including prices broadband, in its increased with positive Alongside for Orange renewal football convergence, €X by for to continue mobile and the offers, decreasing fixed FTTH, back-to-school churn of nonfootball

financial our migration This previous move sales retail of from towards migrating simplification after initiatives quarters, in impacted already us but the the and brands. by low-margin our to pursue República services and Móvil improvement reducing fixed slowdown customers Orange is equipment the there the activities successful are revenues from our brand. towards Regarding such allow compared portfolio will performance, wholesale in to X total have underway Simyo, as the Amena a we international to started by X Also, transformation customers slight traffic. the

in to Finally, customers fiber the X at commercial the to services offer we launching XX continue differentiate our high-end largest by provided a giga cities.

continued the environment fixed actions solid quick to that footprint trend delivered, Africa thanks our initial to being a broadband driven on tougher out fueled, this smartphone drivers strong which response. word firstly, Orange Money countries Last, especially XX secondly, revenue facing by and will strong deployed grew part increase the fixed growth, demographic, remain in to performance quarter XG provide of continued this with a to the Middle in of mobile of of BXB. a source momentum broadband All limited the by strong the base; East, double-digit growth, continued quarter, services, XX retail plus a and customer of of is adoption. those increase range. in our XX% turn now which by operations thanks competitive Let's and very also for a are and of of All a years, a efficient outstanding data, coming

the revenues, the on segment quarter. first as details supported Slide X.X% all other The by in by our of digital cybersecurity, key is well business our X we months business, despite change you only X.X% Africa not least, to our that as XXXX for The and the the stems at XX% clients the compensated provided always X which is IT X%. decrease up action the well than all revenue. impact The and are year no results. faster on voice reiterate elements as to growing first by but decrease We more as migrating Middle recorded a the months not we present this up of last accounts of mainly of We is not IS quarterly July point that as full both from our by Last above first are expected. footprint, East successfully pace But the in managed and it. The have competitor would XX. year guidance mobile minus XX% drivers over I plan QX. Enterprise The and by fully digital the during XXXX and of this in has which now the growth new and growing objectives. fully of this solutions which enterprise revenues the in will our face voice data has our growth in IS here decrease guidance accelerated IT cloud have time a the year add is

my with colleagues, ExComm Now answer you. we your to questions. will Thank

Operator

HSBC. from We'll take Nicolas Instructions] [Operator our question Cote-Colisson from first

Nicolas Cote-Colisson

short I've got questions. X

The first fiber one France. in is about

You're reach area. in premises building medium in is My are and big a the peak of the fiber market you CapEx the had in good just France? share at second number targeting? total question from to you you when on dynamics XXXX. pace. you And remind expect do a Obviously, co-investment competitors also dense Can fiber us around of

So of revenue to how And for market does maybe what's translate view? ground retail co-investment? this, from this linked excluding point the share wholesale, the trend on a

Ramon Fernandez

So Fabienne to your questions, take is going Nicolas.

Fabienne Dulac

homes in very momentum observe. -- still fiber. a you fiber, as are on connectable we strong we X.X customers France, currently, in million and on yes, We XX.X have So can million

dense remember. us, the took co-financing -- -- QX, beginning the beginning the rollout. And is commitment and very of the are be XX% more with we in they now than strong XX% players the we the the we year, the slowdown in come lot of area, the the the if PIN XXXX, in slowdown are explained XXXX start In is for the the last of have you PIN and have, a a around in this So competition this of in of we area, started as because to of the to area, in will is the of middle we do rollout we government. you're fiber, the near hand are CapEx right, the the And of middle we In dense this rollout of dense and pace. finish area. very there area. in But the area, of we are to through peak middle dense more front

period. the still doesn't performance to competition strong but the impact with we XXX,XXX have. momentum just have It's want in the we I performance result the add. have QX, we strong, it lockdown the the is So initiated strategy high recall and maybe following net a

have marketing of despite are relationship, we assets of competition, have, customer we services. quality more we the strategy, So quality all with able network, the

We consolidate really are position. leadership can our confident we

Nicolas Cote-Colisson

what So co-investment, maybe the Barre wholesale trend? for it the will wholesale And Jerome the is excluding revenue, the trend, question. Okay. underlying around what's take

think €XX Just in ourselves really Fabienne in in I to on comparing says. have I invested real fact what of fiber billion we XX that the confirm in it's past past others, the to years. mean mean, important of Orange fiber, all €XX the -- billion the heavily Europe, characteristics I also one

not would France, today, if you figure is are so average. fiber. of few where countries to just take It the built a connectable households be would And the XX% XX%. in XX% I Europe in name And

future. at So where for competitors, taken our and the our you also of challenge before the then in country than some much you and factor see, Spain, has Poland a been France, are countries in it looking future, footprint be going at fiber of looking other most with to is the in differentiating European Orange the

Fabienne Dulac

is and to XXXX, rollout maybe be the peak in to the explained, we in It XXXX. started on to clear, slow and as CapEx the I us. of just fiber behind And was down decline

So it's behind us.

Ramon Fernandez

Jerome, X wholesale? on

Jérôme Barré

Okay.

for question. everybody, So the thanks

effects, So concerning exclude also to Europe, X wholesale revenues in fact. in in France you but have

the know, big the co-financing you impact big one course, Of effect we XXXX. -- as had one-off July a in because is concerns the

in merged XXXX. to the Xst this second but have which is in which There mention lower rate, And that offset effect I a lower, termination cause, that European so is we July to new of than we the is is before.

off turnover, you So it because, on neutral is a know, when our take effects, X have fully impact has these And causes, it's as X decrease slight you EBITDA these we symmetrical. which an on correct, Europe fully the when in France when on well. revenues results what in XXXX. communicated and commented it's for we as our FY and announced wholesale the we our And in we trends July

fully aligned. no So surprise,

can July. we just confirm we so And in said what

Operator

take next from Deutsche from We'll Roshan our question Ranjit Bank.

Roshan Ranjit

to for previous Two the maybe And please. one. first follow Great. up just one, on me,

How Concessions also, hard year-end? to just predict, closed said Orange by driven we And deal. this given your Now think lumpy, you've your the about competitors. now very into you it's going co-investment should

first pickup a And which the on So full secondly, recovery book Concessions. the drive Orange saying see into retail from the a FY surely, slight recovery trends. 'XX I'm we that construction question, a component? recovery not slight construction -- should of Should you my please. revenues, on just That's but

Another acceleration this quarter.

I you've think, mid-term this guidance, X% given of ex think kind X% to I PSTN. previously,

range. that that move at into the PSTN Is dynamics Could of And retail end to now, the upsell pricing we ex range Ramon, kind the top now given of that the mentioned trend see some you of you're seeing? upside You're higher? pads. there XG

Ramon Fernandez

in really Fabienne said, is your second of X%. retail, said, question, which as range, the growing but we course, PSTN, On complement and you this, X X% Roshan, and we of between what are can excluding

that is will this we the and if the and a to say, given with strong know, you you one. high-end best want can that is very in remain performance. the the with And X see testimony of strong state performance. performance on were don't Fabienne, I solid. it's able composition very brand the of of So book very a we something being the a which bank French increases price proof needless to of this quality And Orange market, strong we to XXXX, also the is quarter, this of the perform the add also, emphasize boundary, the competition will within

Fabienne Dulac

Yes.

We the very be specifically are really and little And same bit made, to the will a repricing confident the marketing future solid the to a we the are because -- in the if fourth X due more strategy in we of performance. we we level the back pursue bit little have a past that the in market in in and XXXX. QX, we the made move very able remember growth is trend, significant It's a higher you rational. book

really So the and the of and are confident, again, front acceleration trend we in clearly, us. retail is

Ramon Fernandez

Language], [Foreign -- the on And Fabienne.

you will and be is will closed going the question, sheet embarked On to of week, be the CapEx closing our transaction Orange of of the see in QX. the first balance well, Concessions, figures, starting the fully Concessions next Orange point, first which

one So be will see. you of this impacts the will

are but €XXX co-financing still We with billion very expected of of this to And next as go bucket terms still an as will see ongoing but construction it's we as on be track add you what XX% it total construction, to the in yes, with PIN following nothing see, around before. with with and far what of XXXX. €X going is quarters, In will we and construction, billion famous go said contribution co-financing, goes, of to to around Jerome of ongoing. well really contribution what the said, €X million around with we booked

year So of terms our or seen we've on as competitors. predict, choices last you depends it predictability, said, hard it's partly totally, competitors. the our in yes, to fact, of of in depends because of the X But catch-up

have is catch-up XXXX. the a We competitor, third doing which in part of

of co-financing. the in and arbitrage these choice in see we future, terms is will so between the of And players what renting

Operator

from our Mathieu next from question We'll take Robilliard Barclays.

Mathieu Robilliard

Yes.

First, to coming market the back retail France. in

performance more certainly explaining, So strong this quarter. lower despite at as This comes end. you were the pronounced promotions

was increases seen to that something I competitors. done back price also curious just is So whether understand book the you've that from other you've

So it's on question. And from price evolved the first book? cutting. generally front. that question generally, that's has second back rational a environment then increases And was churn your despite actually -- how So about on cost the the

the cutting your and in order for If are trajectory you give the could cost update cost steps cutting billion us the of an a indirect €X next of on of ahead what costs. meet guidance bit to

Ramon Fernandez

Mathieu. you, Thank

So Fabienne, market. retail on the

Fabienne Dulac

Yes.

And On and I from on this a market, strong, the retail Maybe come it market, the low-end and performance more is good X news. doesn't is the both doesn't come mobile and it promotion, on fiber. from points. think

with at but environment. improvement the All mobile all, a are €X, First the at observed create market observe market on I lowest it, despite pricing. And price a and you in players past, more we contribute the better in the to QX, a of sluggish in in October, the beginning have rational maybe and gone. explained the of back-to-school, we and an QX, a more better as

think news. I a it's So good

the mobile, I and the time and the recall than -- not low supported are on performance, by adds XX%. more XXX,XXX first for And the dynamic high-end Orange, is by net the supported by So the market really end.

think, churn bit particularly little is due do and is as in a markets are QX due a to very try This exactly churn on real very sluggish. this and In is to This back-to-school broadband And on in low. way, a is our because QX. intensive the a French BXB very, low in network I this I of we what market. the you're quality We quality a -- very customer for this both more turn of the to, we of both to the beginning quality from the move strategy, mobile. and it's really the and So of boost the experience. due year. rents our is we of churn the record same think right, confident we This propose, rate well is retail the oriented, past. in And it's leader

NPS. still number are one in We

but -- assets. strong a So performance, thanks fundamental I think it's

Ramon Fernandez

And The confirm And said communication, on million. at or in And with XXXX Thank Mathieu, cuttings full for will we you, them the Fabienne. the -- the basis the including is the was are QX, at delivered million terms XXXX. line the in of or figure around last delivered and whatever minus call the year between million to cost-cutting €X we you that at absolutely we sequence. in XXXX, I year look of be it what the cost billion €XXX trajectory, are in be million. you on from savings are €XXX €XXX on contribution can if target, looking at, which €XXX end savings

So elements all it, the more about on on in we full we'll are that with them. and communication, our objective, described the of of be course, talking year at year track full the all were

Operator

next take Paribas. from We'll from BNP our Exane McHugh Sam question

Sam McHugh

quick questions, if Two I can. Yes.

The the €X that the network? that's cable that activity, just for for one. billion this assumption co-finance the carve-out again, then on you they can just So you secondly, sorry. you track dense does mentioned question on in mentioned medium their in co-financing SFR us coming. if So quarter TOTEM an is areas includes have where And remind co-financing

to the M&A that Hivory France be now would as as in sites that open you've you're been to think said wondered participating Cellnex also, proactive I past, And pursuing part just that of required you early discussions. in deal. be interested saw consolidation. whether well? in TOTEM in of are divest already, I kind in the the going you're to telco if Is I

Ramon Fernandez

first know I don't take if will So -- the question. Jerome

Jérôme Barré

now competitors, different in co-finance big co-financing, say peers, that I our every Concerning -- must different Yes. years. of

there effect to before Ramon as fiber. catch-up And in a products of in one, were of since were say, they X beginning XXXX. and deployed of see them the -- for because SFR, XXXX, co-finance all in third to the was pay co-finance for the started You which had deployment the the

where a our now So co-finance. we peers are all in situation

I said, XX% Of we as I of represent still would there in course, And will were recall which XX% less Orange. there since for policy of is a which catch-up because, money, lot co-financing be but huge a decision Ramon products us, amount will which It of co-finance. front say, the by the less there deployed and effect. catch-up co-financing new have is the built that mentioned regular, to products, a were -- a be of

Ramon Fernandez

Thank you, Jerome.

I So that those as here active And were game is fast the think FTTH. short who the fiber story can. cable as operators are they the switching name of on is to

true not question. in it's On So France, fact. in only in but France your TOTEM

So first yes, track. are we point, on

the working in entity so following starting weeks, and be France will Spain. full-speed And the legal with

team so So CEO, is TOTEM so And targets, which setting teams have working say, well we now target. the a And are we now here. team with on I on ratios, growth delivering, absolutely development the CFO, management team, on et cetera. would the working tenancy a organic France a we And cetera. TOTEM also Spain, track a very and costs, is in are et optimizing

important are first issue. team, Nicolas So on Guerin his they very working, and this

about level, the happen legs: sector, and we in participating that walking our of the and always Now on consolidation TOTEM going said would when thinking will we European and looking to at at tower be market X how the a I are we actively, what's market that countries a say, active organic would here this in confident on can be actively the of inorganic to I And is we actor way to the in let's and we pure extremely fact being an part proactive leg. be clear the position are you the leave mean, say, of the to, and because would towercos. leg there no or that be, --

not an us. in are we much happening. creation, only don't As MNO, we And convinced, see value want to very of but this terms

the We part which own take telco field, keen colleagues this extremely our towerco football have market. in are some of to also

your is this is question. more to agenda. on our I specific, but not this will would be what So like high say I to

Operator

We'll Bryan Suisse. from Garnier. Bluestone take from from We'll next our question Thomas Coudry our question next from Credit Jakob take

Jakob Bluestone

had just Bank. just I one question regarding Orange

There partner. move. go some you buying deciding in was You What rather month behind understanding you announced previous new a in look partner at to were the been just I'm Groupama. the that full press than for might out in? for had interested reason your reports that that getting control earlier a thinking

Ramon Fernandez

objectives, also take having give with bank to this my I would question. side, to to the just the of belonging say their to say on a a Paul was the de and going we'll on had But were reasons willing I'm us that Groupama, on given own first Leusse maybe Groupama, answer, opportunity which for partner, we cetera. word but exit which et

was, ahead were side We And not I control to to years that were and discussions, in our in is partner of what another come wise not be the we if the which so strong some would give just had supporter willing today. game. on see the for ready think, conditions in is be to going it the reality met to a group up the

in time And we a control developing basically, preferred be discussions with is bank control, put that can to We better synergies telco. the XXX% a to the would also stop the which to with the for of the help we development to strategy future, position supporting what being. So decided going in happen. see, we these and the

position. is we are this this so And now in why

of very Paul words, dynamic a that have bank good can describe. -- a maybe in We the few can,

Paul de Leusse

on Yes. Thank words Bank. you, Ramon. Orange Perhaps X

it said acceleration very of we was Orange a are huge development the as in by First, Bank. facing Ramon,

Just to you few give a figures.

X.X We million have reached customers.

our last well. quite €XXX -- and is year, which our obviously, last XX% as since quickly than are will million year. by NBI, our loan €XXX compared losses growing reducing to revenues, is million be Our And origination less beyond which

So Orange growth Bank. we the are of accelerating

losses. the reducing are We

lose of said with true, up, we bottoming it by partners, And partner As ready Ramon, discussion over It's to had last was -- some said banks. good yes, we we're as the and one news. Orange, not terms of that's side. control in by on are quarter

right found we side, more, said, We have On the say, we let's made our is it's acquisition of we why quite have to growth, why fuel solution, other steady which there that off-the-shelf now. Anytime. partner to because that we signed with fintechs the have a partnership what implement. we That's prefer is can we why with as Younited. I find leading as with solution are traditional consumer insurtechs compared prudential we to these the spots. with banks. also we to digital have That's a loan. efficient to do did And Younited, fintechs on which providers why discussing same several obviously, with fintech French are more That's we much some That's

Jakob Bluestone

right If do part thinking? monetize look of as it follow-up. you or to ask is of bank at of some you your else do you Or in. it? a time you said, the sort think to a the you least might just I -- But Obviously, Do at this -- wasn't think someone bring point? can part

Ramon Fernandez

issue taking being, developing be time a later are the this the For we we and bank, at will stage.

For the this is as said, last the the to the positively of figures by way, because we group, year. time bottom growing, contributing we positively reached the being,

So of profitability the contribution year-on-year a to now evolution to positive a going of be group. it's

Operator

Goldman next from We'll take from Lee Sachs. our question Andrew

Andrew Lee

just on I Enterprise. had question one

something of of the your in be that you And impacted wondering revenues to about revenues talk a ability voice over a You the picked -- that decrease down, on revenues. could if you update or sustained, coming flat-to-growing in temporary can years views quarters. the you for kind just on will were be retain coming the that's whether phenomenon any I'm would great. by out think kind continued Enterprise that's

Ramon Fernandez

Andrew. you, Thank

your going is question. Helmut take So to

Helmut Reisinger

Andrew, for you, question. Thank the

consider which is our which offerings. phenomenon, in that part strong of see digital We voice in First a of we volume our that growth we for underlying an is of on evolving, all, via the is of game mobile historic increase, substitution example, structural the side. fixed that workspace there take

the You see well as this numbers. in

about X.X%. historical XX% revenues, has our way, forget By it's other it let's not you of decline is quarterly this million. represent Unfortunately, X.X% and see the the why hand, declined. On of this XX That's accelerated. a voice

already feeling, the in you than to is XX give Just there a more of voice million. amount pure

So the it that this shows driver. you major is

On have over further offerings, helpful noted historic that this it you the to the We also digital trends, voice also And into IP. the if think, convert structural that not on across the some software-defined SD-WAN, price networks, done summer. look be to to impacts rollout our LANs going managed over in that's voice but across should like seen now And France, we should our just now I also have why globe. in over be, be the with adaptation become that it's other crisis that we is you And the #X, reason summer would only I a a the hand, to chipset element new workspace some believe there. second mention globe with have delays.

why we do to slower second has we to there a confident year. this as in But have indicated our reason growth quarter, you. that's a are So sorry. But this -- overall, been overall that numbers

Operator

our Bank America. Alexandre take question from next Roncier of from We'll

Alexandre Roncier

African I recently agreements was more IPO more you've something eventually that your Egypt, you What following was plan of the where floor the or strong even and we've you on XXX of a million saw done or it just quickly were days year. or, X about into if investment a in do had well, Europe? was there combination yesterday of about? a if with plan more one year for just could tariffs big ago thinking that like the into Africa that similar USD in in next much you and like sale of news tower as Just wondering on had TOTEM region. financing market, new by that how I And

Ramon Fernandez

you, Thank Alexandre.

today. of us Africa, So Alioune, Alioune? Orange with Head is Middle East,

Alioune Ndiaye

Thank me. answer? me you. hear like to you Finally, you Would

Ramon Fernandez

ahead, on go Alioune, Egypt. Please, Yes.

Alioune Ndiaye

Yes.

the So capacity the we coverage one orders we we -- largest to in And of you are telco. X the Egypt are population. as with in in know, -- to grow

that to opportunity enable the any us competitors. catch So could with up

we but open opportunities, have not to these investors what we're to moment partner for how I Egyptian We're going all exactly say. starting do the are with we So it. do so would to decided

Ramon Fernandez

And very Alioune. you towers, complement? Thank want to much, do on you

Alioune Ndiaye

in towers Egypt? sorry... I'm On

Ramon Fernandez

Africa, Africa, In generally generally In No. speaking. speaking.

Alioune Ndiaye

strong Yes. Thank competitive to In is In And actually Africa, Africa. -- Yes. we have a towers. our of are Thank you, we of not really our also the many towers. sell we a number willing position In you. have geographies, very we our regarding edge are Ramon. position.

at could the for the mean approach -- to investors, make cluster kind do willing if make cluster of sell sense TOTEM. not in we level. left are the the we or losing is for control then Sonatel it the towerco. could have Spain the to make towerco kind countries towers, the could to from It and X of we have of and France that but So without had sense sense instance, a it cluster it I have, -- have

the So in we are this position the and is willing approach our to have region.

Ramon Fernandez

Yes. you. Thank

let's the the So south reaching the you see Mediterranean. of is Alexandre approach the say, European that potentially also that --

We more later will about talking be this also.

Operator

question from Jerry from We'll take Jefferies. Dellis our next

Jerry Dellis

Yes.

quarterly is what terms activity. estimate repricing towards I revenue to at April this how then a retail the that retail economy upward your impact the you prices positive coming and to fair of the wider secondly, June in book business back year-on-year experienced that's stage. it is having implemented to customers a back the is the basis? book trends. pricing to to that in French order pressure February, power XX the raise you question runway back And costs First in repricing And revenues million benefit being consumers at next service of just suppose from on and on retail believe would the €XX impacting in that France and inflation there and some in €XX on to same pace book Would back be million the months? of on on continue be do your

Ramon Fernandez

Jerry. you, Thank

not So current I inflation. economies, spite on is of the first of in just question in levels say is unchanged for obviously, inflation, a our which guidance our would sector, that big our

So point this one. is

fact, in that to France, drive in industry prices line, than continue Poland capacity true from top are by the the one the the these increases obviously, to mostly so our French anything in say in We'll But able driven where does price a should increase, obviously, environment. The other not to if is other do else. level If also position We've the in I it's in around much you've levels, question more on you in And capacity would question, will competition the adapt on own mark look also pricing the depends us industries. competition of but months. continue increases price happen. policy turn past in pricing countries. been to to markets. seen be no Spain, our this XX as our we at to in current be all There

the grants lowest-possible on power, So costs us access we buy-in, will working this. through purchasing to venture buying our particularly with I be and side, the that And prices. Telekom, would and CapEx Deutsche on say joint our

policy, a also way, the XXXX so we've chain with position we procurement true, should our face is supply contracts. to anticipating, So covered linked in the been looking this crisis, be to already our energy situation, have which also by number costs, where, at of in a countries, we main and

an rate obviously, French in increases impact figures are million to XX-month the run our Fabienne and basis, maybe what up has should been would retail, double. but will turn book to done this France. economics the in of contribute that feature I more additional now back euros net say positive than important XXXX On I €XX around just be on will X the that price because,

we've Orange was say, are where these buckets some bundles a trying will France of, the prices years, able to continue, with time, X to churn. in with close generous past moves, let's more better customers around be and done take we at them as million important to So and to very moving time X

which going there demonstrated, to so pricing has And future. in be is been the a power, that and pursued is

Fabienne Dulac

Yes.

same we book possible XXXX, have acceleration back mentioned. but X have April, and we book of XXXX the we will it's we X not value in time. the an with in June because February, October. it's is understand back to It's and And you launched strategy have repricing that fuel the a the book as You're at strategy, right repricing because It QX. repair back market consistent in repricing, the important but

have fiber period. the after appetite We end for mobile lockdown for an the and of

revamped to It's time, XG points maintaining this repricing our we but, for strategy all book So we maintain exactly did we in we more broadband, when on different premium we support have due to have more. on convergence. at back in strategy confident where the strategy that a what a launch offers, the same the on this are the future mobile, October give And we really can launch. XG

rationale we this So future, all price. we a confident and able raise market maintain strategy yes, the we supported where their that in competitors more by are are

Jerry Dellis

Could than so that XX-month XXXX, Ramon double service full benefit the and rate based gave? on far. I in then €XX the of the that million price just numbers it's increases run confirm more So revenue

Ramon Fernandez

Yes.

Fabienne Dulac

Yes.

Ramon Fernandez

That's it.

Operator

from question Emmet Kelly next Stanley. our take We'll from Morgan

Emmet Kelly

maybe post LinkedIn, Europe. you a Can X weeks I you tech up playing for by just second Can the is question unions declining what of of to question. a where just you're details expenses, the terms fairer please? what looking few and words paid putting next X particular, labor be to in average offset you delivering relates for a whether in looking of And in to the few providers, about of maybe then increases should give numbers content believe Do say over-the-top And for employees, on has customers? words a expectations that first on years you about agreed be pay saw of world weeks Ramon, ground this telcos for a coming were just please? example, us between kind by through you The can few French I terms full-time ago, the question, telcos back the ago, just for? and post trade say couple with been in and think, inflation

Ramon Fernandez

you, Thank you. Thank Emmet.

Gervais costs, is labor the On going to take your question.

Gervais Pellissier

Yes.

XXXX, Regarding this sorry, is salary year. observed French average labor -- X.X%, we the has our the operations for increase have which negotiated for we inflation the below costs been to increase, general in

the not we Regarding yet year, next negotiations reasons. have X for started

to is the every We'll process. down slow it's if even economists, fully secondly, not laws, an see, undertaken this cannot to certain inflation a And year. to confirmed. one negotiation according verified year. negotiation might be annual is according that next first -- yearly French yet, We to maybe the be is the The early negotiate multiyear

years cannot X enter So into process. X we or

we increase negotiation mind for year, at this groups, with French the next has been year. figures the now above average -- for start in we'll done of So when look are that that having some what big early the in we X% are

plan. the occasions Regarding team we on early level we did process into in under and the the several departures and a have could think are the year. in beginning Ramon easing might scale-up which or our year, our retirement next we plan more the so And within force planned scale-up in evolution, on this undertaking with that manpower plan, like I ease discussed currently at early French of mentioned Spain less the unions is the the operations, enter we departures

Ramon Fernandez

to I big be was a asked telcos. Thierry roundtable balanced. well is fall for LinkedIn. head France also is Parliament a of was which ambitions, awareness you day Emmet, there Bonhomme, the a that the policy former that is lot of huge a colleagues is Telecom better And Brussels XG XXXX. was should game are Orange a including on growing with the by meet on put the table of of And [Foreign by the reading and message on EU various you from a the thank the know. post agenda, think representatives There Commission, It in of Basically, rules following There public bit of being it -- Twitter. having Gervais. And Language], the parties.

to There If just you policy number alluded be says have you get put a the the a This supportive if there for of on including you for you connectivity to to want all, public decade, digital table, to big was to, were which network want have could room, costs, more the which basically of message. telco. is issues a that one have bit are a balanced to representing are and XX% contribution tax balanced. world's when have that traffic, space costs. a Internet international platforms of more were if XX% XX more And you representing Internet more to global bit of is the this them network X are worldwide a contributing there bit know traffic,

Digital a Europe field, in we There a to bit about And I And think will big where the have only obviously. in So this world, see issue of outspoken issues telco in Market be not expectations will yes, Orange, discussion some is because need Act. an basically. level the these we be about there we playing more goes.

Operator

We'll our next Garnier. from question take Coudry Thomas from Bryan

Thomas Coudry

Yes.

issue mic the about France. were in October. offer please, mentioning of you the X, revamping One, I in I Sorry before. have think, the Fabienne,

closer, way, the mobile-only you a this Sosh offers. offers During brought Orange to in the revamping, actually

us you're forward? as some leader for the You were this this of market commitment the question with my that I with should update How question. When look lowered premium you second move? around are how Isn't on here? it approach your -- on still And we move? expect a the is That's about to think And decommissioned putting copper and first leader, as is, my going XXXX? a please we prices market no contradictory network expect at asset plans a copper discussions decommissioning? should consistent have anymore, them. the be And news could we should also,

Fabienne Dulac

Yes.

to to this. high-end markets, again and move first time the a did. and think It's clearly need explain to I we boost explain maybe what I For question, we take

€XX. only, be compared in attractive to when design, it market October, thanks -- the First we to will mobile want brand and through new boost high-end the we the offers and €XX have revamped the to the on price and more the In it of and all, because the Sosh our we Orange we the competitors. But other and Orange Orange gap and have €XX Sosh reduction offers; nonbinding between still Orange. was the in And gap Sosh between past, gap around brand. between

customers. new and to we for convert same to the It's what the broad. exactly is October, and So The at we observed exactly was that conquest what it's us fuel objective in it and way. did, ARPU too

maintained offers, pricing this The want offer. second attractiveness a while XG -- to revamped maintaining the to €X a premium premium. it's gap in reinforce this with a we XG according point €X We to between

to These you're to X right. for We than offers. decide So price only X% our down down represent less yes, X sales. of price but offers

is volume there So no X offers. these behind

strategy, And increase, it's observe as did market the But October. high-end as exactly have have premiumization So you ARPU brand, we is in the we a we and our really, in and the and beginning Orange objective it successful a strategy, maybe should in will boost results. to ARPU reflected the the the because -- observed past, end, at you question a what the QX at and is of second it's in this about copper. sorry,

in copper, officially, didn't we of beginning we the the and at start are just the So discussion with Arcep, them.

anything. announce I think it's So to early too

and The operational retail, for and the plan the in will copper, But closure and process aim objective the public wholesale find fiber. balance right for And of is with commissioning a control between between the will other costs. in the to time, successful Orange, -- and plan, We address there to action to it's and present first all, consultation have, the be have discussion copper our balance cost plan. sorry. The we the second the player. the between condition of the revenue

very So issue, The an be, a above too. a because plan Orange, the action will only issue I It's all, and one financial program to end and in customer issue, it's environmental the want issue. point the from and not -- recall is important. It's, maybe it technical discussion important. very a about the

Ramon Fernandez

is date. the target XXXX And

Fabienne Dulac

the XXXX target. Yes. is

time. long a a process. It's long-term take will it So really

Operator

Abhilash from next our question take Mohapatra from Berenberg. We'll

Abhilash Mohapatra

Yes.

on towers make maybe table? payment sort is mean sort that strong is look a not the that at only of so a bigger Just scenario you -- would to sort net And part financing? in to sheet, of on to a given to of of sheet X open you comments of around pan-European pan-European other consolidation, I be pretty maybe In that tower where balance the group? at broader context, higher I taking be had Or debt means around question would EBITDA. balance sort turns guess. you of your

Ramon Fernandez

Abhilash. by as you the will us billion performance, in think the bets the did be past to X a manage time, on And way. of balance significantly characteristics basically. very at quite you, reducing leverage net the for is a FTTH one maneuver, same same debt room a future net time, strongly is which the the now this below be think in have we strong sheet, €XX and that To some Orange at so we invested bold past in and, heavily XX position is preserve the some make of putting years this I have ago, to at I where group. to said, Well, and years XX Thank were contributing and of the we able

we So sense. I mean ratio it make an of of region fiber a doesn't don't X. of absolute have

think we suddenly us prudent would markets know of we I financial ugly. sense turn I in from can that say, the history are, all that

up balance to may in think big happen if headache. And mobilize who wake remain the are day those there markets all opportunities to areas, we and going same sheet. these business the time, to the a money forever value not also in some open one are with if forever other strategic have This or So cheap capacity towerco know will we creative, the that is us. at

would can if, agile, opportunity, question. is to again, how it's can will we and we is move this good value-creative but also position we there look and once be where be I a in a this puts safe, say at your So us

Operator

questions more back I'll queue. the you. no in hand to over Speakers,

Ramon Fernandez

at which Well, XXXX of in the always comment. at bear only you of one Don't high a to the of around numbers, questions. like the look I QX for very underlying co-financing, thank I which comparison very look the impact is co-financing. disappointment to good. very thank basically, Maybe you. everybody at some issue cetera. a same see headline et at But Thank performance, in look would terms the looking performance. on France, much. Please fundamental

at you and X.X% growth revenues you impact, EBITDAaL. this so without in in the figures And growth look co-financing if X.X% have

not this forget. something should So is you

I think to going the And group the it's is are everywhere important. including quarters. performance performance in the in the seeing headline performance, future commercial very good support the you

So will XXXX XXXX. we that reach that is terms for of confident XXXX. are we objectives targets set confident in the will guidance, very the And and reach solid rock are extremely also our we for we

you Thank continuing wanted weeks questions, time interest, here for you So thanking your this add. even very the in to dialogue be the of Bye-bye. days questions. the will your is I with your is much. and for only Everybody all we again and Thanking on you you horizon. point and next later once

Orange (FNCTF) 26 Oct 212021 Q3 Earnings call transcript