Orange versus pandemic: 1: 0. The operator boasts of good results

Orange published the first financial results covering the entirety of the pandemic period. We check how the lockdown affected the finances of a telecommunications company.

Already in the last quarter, we saw the first signs of the impact of a pandemic turning our lives upside down in the financial results of mobile operators, but only now will we be able to fully assess how Covid-19 has affected their operations.

Orange - financial results for the second quarter of 2020

The period from April to June is the time we spent mainly at home. Only at the end of this period did the restrictions begin to ease. It turns out, however, that it is difficult to look for any major fluctuations - there is neither a crash, nor any significant indicators reported quarter by quarter by Orange have jumped excessively higher.

orange financial results for the second quarter of 2020

One could have the impression that Orange would breathe a bit from the fact that much fewer people used roaming services, for which telecoms allegedly have to pay extra, but ... apparently, this unfavorable trend was reversed. The pandemic and travel restrictions have reportedly had a negative impact on Orange's revenue in the area.

It should be remembered, however, that roaming is only a tiny piece of the puzzle, but lower expenses for it than before is a component of the operator's success in the analyzed period. Orange Polska reports that revenues increased by 2.5% in Q2 2020, while operating profitability EBITDAaL compared to the same period last year - by 10%.

Orange: "This is the result of very good commercial results from key services."

However, the company adds that it would not have been possible without the actions it took to "minimize the impact of the pandemic on its business." However, the company was certainly helped by the fact that although it provides mobile services (and we have been less mobile for the last three months), it also offers stationary (and remote work requires a decent permanent connection).

In the case of optical fiber, 44,000 decided to install it from April to June. customers and more than in the previous analyzed period - "it was another quarter with the second best result in the history of this service". The mobile segment is also doing well, which was due to the low churn rate and converged packages.

orange financial results for the second quarter of 2020

Orange argues that it has been able to "dynamically respond to the enormous growth in data transfer demands" due to investments made in previous years. The head of the Polish branch of Orange also appreciates his employees, who "invariably looked after our clients also during the lockdown" and in his eyes the company will come out of the crisis unscathed.

The numbers confirm that the coronavirus did not beat Orange.

Increase in the number of customers of the Orange Światłowód service by 44 thousand. people means that the service is already used by 608 thousand. customers. Orange is also constantly increasing the range of fiber optic internet access and in three months it has allowed another 209 thousand to join it. households, and the total range is now 4.6 million houses and apartments in Poland.

Orange boasts that already 1/4 of its customers use Orange Optical Fiber for broadband internet, and taking into account various technologies, the number of customers increased by 22 thousand. i.e. 2 percent YOY. and this is the best result in six quarters. When analyzing this result, it should also be remembered that due to the lockdown, connecting new clients was difficult.

Orange is also not idle in the mobile segment - in Q2 2020 alone, it acquired 162 thousand. customers of subscription services, including 65 thousand. voice service customers. Here too, success can be seen in convergence - ARPO is already over PLN 105, and the number of people deciding on Orange Love packages has increased to 1.4 million, which is by 8 percent. more than a year ago.

orange financial results for the second quarter of 2020

Orange explains exactly what influenced revenue growth during the lockdown.

It turns out that the most important were the basic services in Orange's offer, i.e. the aforementioned convergent packages as well as mobile services and high-speed home internet sold separately - 2.3% growth was observed in this segment. YOY. Another "positive factor" is "IT and integration services revenues", where we see an increase of 46%. YOY.

Where the drops are clearly visible is the segment of sales of devices such as smartphones, the reasons for which can be seen in the necessity to close showrooms. Due to this, the revenues were lower by 13%. than in the previously analyzed period. However, Orange is now looking for savings to compensate for this and, for example, indirect operating costs have dropped, also by 13%.

The direct margin (the difference between revenues and direct operating costs) also decreased visibly due to the pandemic, but Orange points out that the EBITDAaL ratio, if you look at the entire first half of the year, increased by 8%. Telekom still expects this parameter to increase annually due to the actions it has taken to compensate for the negative impact of the pandemic on the company's business.

Don't miss out on new texts. Follow Spider's Web on Google News .

Orange versus pandemic: 1: 0. The operator boasts of good results


Popular posts from this blog

What is VoLTE and how can you activate it on your Xiaomi

So you can check the battery status of your Xiaomi smartphone and how many cycles you have performed

How to exit the FASTBOOT mode of your Xiaomi if you have entered accidentally

Does your Xiaomi charge slowly or intermittently? So you can fix it

Problems with Android Auto and your Xiaomi? So you can fix it

If your Xiaomi disconnects only from the WiFi it may be because of that MIUI setting

How to change the font in MIUI and thus further customize your Xiaomi: so you can change the type, color and size of the letters of MIUI

What is the Safe Mode of your Xiaomi, what is it for and how can you activate it

Improve and amplify the volume of your Xiaomi and / or headphones with these simple adjustments

How to activate the second space if your Xiaomi does not have this option