Orange Polska achieved good results in the third quarter. Customers are increasingly choosing Orange services – fiber optics, mobile services and convergent packages are gaining new users. Revenue from key telecommunications services increased by over 6%, and the total revenue of the company was at a similar level as in the previous year. The operating profitability EBITDAaL increased over the 3rd quarter of last year by over 3%. The company is on track to achieve its annual plans.
“We are particularly pleased with the very good sales results of key telecommunication services – this means that our customers appreciate the quality of our network and offer. Both the number of customers and the value they bring to the company are growing. For the first time in a long time, the number of prepaid service users has also increased. The challenge remains the situation in the business market, where we face very strong competition and still relatively low demand for ICT services. Overall, our results are solid and allow us to confirm our annual goals,” said Liudmila Climoc, President of Orange Polska.
“During the last quarter, we continued investing to deliver the highest quality connectivity. We expanded the coverage of ultrafast fiber optic of speeds up to 8 Gb/s – it is now available in 12 cities in Poland. More than 2300 base stations across the country offer our clients superfast 5G mobile internet with speeds even over 1 Gb/s.”
The last quarter was marked by difficult times of flooding in southern Poland. Our teams worked with exceptional commitment to support our customers, ensure the continuity of services in flood-affected areas as much as possible, and also to restore connectivity as quickly as possible wherever it had been interrupted.
“It’s very important that the long-awaited and much-delayed process of allocating the 700 MHz frequencies has started. This band will enable the provision of high-quality 5G coverage also outside of cities, based on a safe and resilient infrastructure. However, in our opinion, the proposed starting prices for frequencies are very high, compared to other European countries, considering the huge investment needs and low service prices in Poland. The final terms of the auction will be crucial for the pace of 5G infrastructure development,” added Liudmila Climoc.
Very good commercial results
In the 3rd quarter, the number of contract mobile voice services users increased by 68 thousand, reaching almost 9.13 million. Nearly 1.5 million users already use Orange Fiber – in the third quarter, their number increased by 45 thousand. The number of households using convergent service packages is steadily growing – there are currently 1.755 million of them, 5% more than a year earlier. In the last 3 months, the number of these services’ customers increased by 18 thousand.
For the first time in two years, the number of prepaid service users increased, with an addition of 12 thousand. The increase in customers goes hand in hand with building value for the company. ARPO, or the average revenue per one offer, is growing at a good pace in all key offers.
Solid financial results, strong growth in key telecommunications services
Very good commercial results translate into financial results. Thanks to the consistent implementation of the commercial strategy, revenues from key telecommunications services are growing faster than in previous quarters, by 6.1% year on year.
Revenues from IT&IS services also increased (by 8% year on year), mainly due to the demand for SMS campaigns, while demand for ICT services is still weak. On the other hand, revenues from equipment sales were 7% lower year on year: despite good results in terms of the number of devices sold, their average price was lower. Revenues from energy resale also declined for another quarter. The total revenue of the company was at a similar level as in the 3rd quarter of the previous year.
Very good results from key telecommunications services were the main factor influencing the margin generation, crucial for the growth of EBITDAaL. In the third quarter, it exceeded 3% year on year. However, this result is still heavily burdened by the negative impact of last year’s inflation on the company’s costs.
The results for the 3rd quarter and the first nine months of the year allow us to confirm the annual forecasts for 2024.
Source: https://managerplus.pl/orange-polska-z-dobrymi-wynikami-w-3-kwartale-2024-wzrost-przychodow-z-kluczowych-uslug-i-rosnaca-baza-klientow-18359
