For the full year ending December 31, sales declined 1.1% to 46.1bn euros ($57.7bn) from 46.6bn euros ($58.4bn) in 2002. Full year earnings before interest, tax, depreciation and amortization (EBITDA) rose 16% to 17.3bn euros ($21.6m), much of the growth down to the strong performance of its mobile division (Orange) and Internet operations (Wanadoo). The French operator did not release net income figures.
Revenues at the group’s fixed-line, distribution and networks division fell 5.6% to 21.76bn euros ($27.2bn), reflecting the industry-wide trend. France Telecom said that the rate of decline in market share at the division slowed significantly during 2003.
Sales at Orange SA rose 5% to 17.94bn euros ($22.4bn), with 2.2 million new clients being added. This meant Orange finished the year with roughly 50 million customers in total, but it still lags behind rivals Vodafone Group Plc and T-Mobile.
The internet operation, Wanadoo, saw a 26% rise in sales to 2.6bn euros ($3.2bn), and it reached nearly 2.5 million broadband customers in Europe. It is still the second largest ISP in Europe after T-Online.
Overall, the French operator still has some way to go before it can match the operating efficiency of some of its European competitors. It has however come a long way from its near collapse in 2002, after a spending-spree left it facing a huge debt pile of 68bn euros ($85.2bn).
A combination of new management, a highly controversial cash injection of 9bn euros ($13.7bn) by the French government, and a restructuring program which last month saw the telecoms giant announcing it will shed 7% of its global workforce, have helped it reduce the debt burden to 45bn euros ($56.4bn) at the end of 2003.
Looking forward, the group expects to see revenue growth of 3% to 5%, and EBITDA of 18bn euros ($22.5bn).
This article is based on material originally published by ComputerWire
