By Eric Auchard and Gwénaëlle Barzic
PARIS/FRANKFURT (Reuters) - Orange SA (PA:ORAN), France's largest telecom operator, posted slightly lower quarterly results on Tuesday that were largely in line with expectations as mobile subscriber growth and expense cuts failed to offset higher network spending and other costs.
Orange said revenue fell 0.9 percent to 9.67 billion euros (7 billion pounds), topping the company-compiled average analyst estimate of 9.63 billion, but restated core profit fell 1.9 percent to 2.92 billion, shy of the 2.94 billion poll average.
The company also confirmed that it expects to meet its full-year 2015 financial targets for restated core profit of 11.9 billion to 12.1 billion euros, which is down slightly from the 12.19 billion euros it reported in 2014.
As part of a four-year cost-cutting and investment plan announced in March, Orange cautioned that 2015 would mark a low point in profitability before stronger earnings and revenue growth return in 2017 and 2018.
First-quarter capital spending rose 3.0 percent on a comparable basis to 1.19 billion euros, Orange said.
The company's core profit margin declined by 0.3 percentage points from a year ago to 30.1 percent.
Orange shares closed slightly higher on Monday at 15.62 euros. Since the beginning of the year, the stock has risen 10 percent, just half the gain of nearly 20 percent in the STOXX 600 European telecoms index (SXKP).
Roughly half of revenue comes from its French operations, with the rest split more or less between Europe, especially Spain and Poland, emerging markets, especially in Africa, and an international enterprise services business.