Orange 2Q Revenue Increased; Swung to 1st Half Loss Amid Spain Impairment

   By Mauro Orru 
 

Orange said Thursday that revenue increased in the second quarter amid good performance in Africa and Middle East and all European markets except Spain, for which the company booked a multi-billion-euro impairment following a downward revision of its business plan in the country.

The French telecommunications company said revenue climbed to 10.55 billion euros ($12.49 billion) from EUR10.29 billion on a comparable basis in the second quarter of 2020.

Earnings before interest, taxes, depreciation and amortization after leases, or Ebitdaal, fell slightly to EUR3.27 billion from EUR3.29 billion on a comparable basis.

The company began using Ebitdaal as a financial indicator in 2019 to account for the adoption of the IFRS 16 accounting standard.

For the first half, Orange posted a net loss of EUR2.77 billion compared with profit of EUR927 million a year earlier. The company booked a goodwill impairment of EUR3.70 billion in Spain reflecting the downward revision of the short-term outlook.

Spain represents an increasingly competitive environment, with declines in average revenue per user, Orange said.

For 2021, Orange continues to expect stable but negative Ebitdaal.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

July 29, 2021 01:48 ET (05:48 GMT)

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