Orange Luxembourg : Financial results H1 2015

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3.200 new customers came to Orange this first half 2015 summing a total of 131.600 lines end of June 2015, showing an increase of 9.5% of the revenues excluding regulation impact

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24/07/2015 |

Werner DeLaet, CEO Orange Luxembourg SA.

Growth is back, in spite of high regulation pressure, thanks to strong improvements in networks, service quality, convergence and cost efficiency for the customers with our new portfolio offers. Customers benefits, convergence and very-high broadband fix and mobile will be the key drivers to enhance the growth of Orange in Luxembourg. Key partnerships with Luxembourgish companies will also ensure the strengthen of our roots in the country

Werner DeLaet, CEO de Orange Luxembourg SA

Orange delivered in the first half of 2015 a 9.5% growth in statutory revenues and 2.5% in service revenues. This increase is mainly linked to the continuous growth of the postpaid customer base, the success of convergence offers and the extension of 4G, 4G+ networks partly offset by the non-application of the VAT increase to the customers last January.

On 30 June 2015, Orange had 131.6k mobile customers (excluding MVNO customers), an increase of 3.2k compared to the previous quarter. Postpaid mobile customer base increase was driven by the success of the new offer portfolio including an exclusive Luxemburgish offer (Orange Elo) as well as European offers (Orange Intense), roaming included in all the portfolio and the inclusion of 4G/4G+ for all offers. This success is also supported by appropriate convergent offers with high quality TV. On the other hand, prepaid customer base continues to decline as per a general market trend and attractiveness of postpaid offers.
Orange reinforces digital customer experience with the launch of a new full responsive website.
Mobile data demand has been multiplied 8 fold. This growth has been supported by the continuous development of the 4G/4G+ networks in coverage but also in capacities (90% and 50% population coverage respectively).

Orange continues to be impacted by regulatory decisions (decrease in MTR and roaming rates under the Roaming III Regulation of 2012). At the end of June 2015, this impact amounts to 2.7 million euros. Excluding this impact, Orange delivered in the first half of 2015 a 9.5% growth in statutory revenues and 2.5% in service revenues. The Luxembourgish regulator ILR has appealed the decision of the Administrative Court, which had partially annulled the temporary MTR framework from February 1, 2014 setting the mobile termination rate for voice calls to EUR 0.098 a minute. Orange Communications Luxembourg S.A. (Orange), along with alternative telco-operators, has appealed the ILR decision of March 2015, based on a pure LRIC cost model, fixing the mobile termination rates at 0.097 eurocent/min as of April 2015.

Orange Luxembourg