Investing.com -- Orange SA (EPA:ORAN) posted first-quarter results that met expectations, supported by steady growth in its retail operations.
The French telecom group reported a 3.2% year-on-year rise in earnings before interest, taxes, depreciation and amortisation after leases (EBITDAaL), reaching €2.48 billion ($2.81 billion), in line with a consensus forecast compiled by the company.
Orange’s first-quarter revenue came in at €9.91 billion, narrowly missing consensus by 0.1% or €13 million. The shortfall was mainly driven by weaker performance at Orange Business, which was €45 million (2.4%) below expectations.
Revenue in France also declined more than anticipated, down 1.3% versus the expected 0.8% drop, falling €19 million short of consensus.
Retail services grew 2.4% in the quarter, contributing to overall stability across the group. Orange closed the period with 95.7 million mobile customers globally, while its fiber-to-the-home user base rose to 15 million.
Capital expenditure climbed 6.6% from the previous year, amounting to 14.8% of revenue—consistent with Orange’s targets for 2025. The company also reiterated its financial guidance for the full year.
While Orange’s Q1 results matched expectations, analysts at Citi believe "there may be questions about the quality of the mix, with some questions around the French performance."
"We would expect the shares to be flat to slightly down today," they added.
Orange shares were up 0.3% in Paris as of 09:20 GMT.
Chief Financial Officer Laurent Martinez said Orange remains well-positioned in the current macroeconomic climate, highlighting its limited exposure to U.S. tariffs and economic volatility, which have weighed on other sectors.
The group booked a €1.65 billion provision linked to a deal with French labor unions to hire 6,000 new employees by 2027. On a media call, Martinez also commented on the potential IPO of Orange’s Spanish unit Masorange, noting that market conditions were not currently favorable for such a move.
Meanwhile, the company reaffirmed that its joint venture with Vodafone (NASDAQ:VOD) Espana to build a fiber network in Spain is on track for completion by summer 2025.