Orange SA Reports Modest Revenue Growth in Q4

Orange SA $ORAN continues to maintain its market position, as evidenced by its recently released financial results for the fourth quarter. The figures indicate a slight increase in revenue that aligns with analysts' expectations. The primary driver of this growth has been the successful performance in the Middle East and Africa, which compensated for declines in Europe and the corporate sector.

Financial Overview

Orange SA's revenue rose by 0.5% on a constant currency basis, reaching €10.4 billion ($10.9 billion) in the fourth quarter of 2024 compared to the same period last year.

Regional Revenue Breakdown:

• France — the company's largest market — saw a revenue decline of 0.6%, totaling €4.6 billion.

• Other European Markets — revenue decreased by 2.3%, amounting to €1.9 billion.

• Africa and the Middle East — this region experienced a revenue increase of 13%, reaching approximately €2 billion.

Competition and Market Changes

Against a backdrop of declining prices in the home services segment, Orange SA has positioned its offerings as premium services. However, increasing competition in the bundled services market, which combines mobile and fixed services, has forced the company to implement discounts to retain market share in France.

Strategic Measures

Despite challenging conditions, Orange SA continues to follow several strategies to sustain its business resilience:

1. Focus on the premium segment;

2. Adjust pricing strategies to attract customers;

3. Expand service offerings, including packages combining mobile and fixed services.

Key Challenges in the Current Landscape:

• Rising competition within France;

• The need to adjust pricing strategies;

• Adapting to changing consumer preferences.

Growth Prospects

The revenue growth in the Middle East and Africa demonstrates the potential for expansion that Orange SA could leverage moving forward. The company faces the challenge of balancing competitive pricing with maintaining a premium brand image.

In summary, entering new markets and optimizing services may serve as catalysts for more significant revenue growth in the upcoming quarters.