Breaking News
Investing Pro 0
Final hours: unlock premium data with Claim 60% OFF

Doubt over strategy overshadows Orange's faith in targets

Published Oct 25, 2022 01:37AM ET Updated Oct 25, 2022 06:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A woman walks past the logo of French telecom operator Orange at the telecommunication company headquarters in Issy-les-Moulineaux near Paris, France, August 6, 2022. REUTERS/Sarah Meyssonnier

By Mathieu Rosemain

PARIS (Reuters) - Investors penalised Orange on Tuesday for a lack of strategic certainty, dismissing the French telecoms operator's claims it is on track to fulfil targets and turn around its stagnating enterprise division.

Shares fell by as much as 3% and were down by about 2.4% at 0951 GMT, making the stock the second-worst performer in the France's blue-chip index CAC 40.

Christel Heydemann, who took over as chief executive of the former monopoly last April, is carrying out a review of the group.

She has until February to address questions related to the potential sale of Orange's loss-making banking activities and the possible arrival of new investors in its mobile infrastructure unit Totem.

Orange's reiteration it will reach its full-year targets on core profits and organic cash flow in 2023 failed to convince the market.

"Commitment to targets beyond 2022 is a little bit masked by the ongoing strategic review that the new CEO is carrying out," said Jerry Dellis, an analyst at Jefferies.

He added much was "up in the air," citing planned investment and the extent to which that will weigh on profits.

Heydemann, who did not attend the analyst call, will lay out Orange's next strategic plan on Feb. 16, when the group reports full-year results, Chief Financial Officer Ramon Fernandez told the call.

The group said all options remained open for Orange Bank, following reports it was considering selling the division that was central to attempts to diversity revenue sources under previous CEO Stephane Richard.

Analysts at ODDO BHF pointed to the slowing sales increase in Orange's Africa and Middle East regions, which have been drivers of growth.

Orange also faces heavy investment in its biggest markets of France and Spain to deploy networks.

Aliette Mousnier-Lompre, the new head of Orange's enterprise division, which offers voice, data and IT consulting services to companies, said she did not expect the division to return to profit growth before 2024.

It has suffered as companies abandon regular fixed phone subscription to make calls via Internet-supported communication platforms.

Orange said third-quarter core operating profit edged up by 0.2% on a comparable basis from a year earlier to 3.58 billion euros ($3.5 billion), in-line with expectations.

It confirmed its full-year targets, including growth in core operating profit of between 2.5% and 3%.

Sales in Spain, Orange's second-biggest market, returned to growth for the first time since the first quarter of 2019, gaining 0.2%.

Group revenues for the three-month period ending on Sept. 30 rose by 1% on comparable basis to 10.8 billion euros, slightly above expectations.

($1 = 1.0129 euros)

(This story has been corrected to fix a spelling error in paragraph 1)

Doubt over strategy overshadows Orange's faith in targets

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email