This article first appeared on GuruFocus .
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Group Revenue:EUR10.1 billion, up 3.5% year-on-year.
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EBITDA:Increased by 6.6% in Q1.
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France Revenue:EUR4.4 million, up 2.3% year-on-year.
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Retail Services Growth:1.1% increase in France and Europe; 13% increase in Middle East and Africa.
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Wholesale Revenue in France:Increased by 6%, including circa EUR100 million in nonrecurring items.
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Africa and Middle East Revenue Growth:Double-digit increase for the 12th consecutive quarter.
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Europe Revenue Growth:Up 2.2% year-on-year.
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Convergence ARPU in Poland:Increased by 4.2% in Q1.
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Orange CyberDefense Growth:More than 9% increase in the quarter.
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MASORANGE Revenue Growth:Up 1.2% year-on-year.
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eCapEx to Sales Ratio:Around 15%, in line with guidance.
Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Orange SA ( ORANY ) reported strong financial results for Q1 2026, with group revenues up by 3.5% and EBITDA up by 6.6%.
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The company upgraded its EBITDA growth guidance from circa 3% to above 3%, reflecting confidence in its financial performance.
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Orange SA ( ORANY ) is well-hedged regarding energy in Europe and benefits from high solar power adoption in Africa and the Middle East, limiting exposure to energy price volatility.
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The company launched several strategic initiatives, including AI systems in France and innovative offers at the Orange Business Summit, enhancing customer intimacy and growth.
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Orange SA ( ORANY ) continues to see strong performance in Africa and the Middle East, with double-digit revenue growth driven by mobile money, 4G, fixed broadband, and B2B services.
Negative Points
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There is uncertainty surrounding the potential acquisition of SFR, as the process is still in negotiation and may not result in an agreement.
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The competitive environment in France remains challenging, particularly in the low-end market, impacting mobile ARPU.
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The company faces a complex regulatory environment for its potential acquisition of SFR, with no certainty on the timeline or outcome of antitrust reviews.
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Orange SA ( ORANY ) is exposed to geopolitical risks, particularly in the Middle East, which could impact operations and employee safety.
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The company is undergoing a significant transition with the decommissioning of 2G and copper networks in France, which may present operational challenges.
Q & A Highlights
Q: Can you provide more details on the revised offer for the Altice France acquisition and the French competitive dynamics? A: Christel Heydemann, CEO, explained that the revised offer for Altice France was submitted after due diligence and has been accepted for exclusive negotiation. The transaction is complex, involving a consortium, and discussions on legal and commercial aspects are ongoing. Regarding the French market, the competitive dynamics were less aggressive in Q1, particularly on the low end, with reduced churn across segments. The transaction is seen as crucial for market consolidation and sustaining investments in infrastructure.
Q: What are the expectations for mobile ARPU trends in France, and how has the Iliad offer impacted the market? A: Christel Heydemann, CEO, stated that while they don't guide on mobile ARPU trends, the market has seen less aggressive offers, particularly on the low end. The focus remains on churn reduction and upselling. The Iliad's high-end offer is not expected to change Orange's strategy significantly, as Orange has competitive offers in its portfolio.
Q: Can you elaborate on the anticipated merger review process for the SFR deal and the updated EBITDA guidance? A: Christel Heydemann, CEO, mentioned that the merger review process would involve both French and European authorities, with one likely taking the lead. The new EU merger review guidelines are seen as positive, focusing on innovation and investment. Regarding EBITDA guidance, Orange is confident in achieving above 3% growth, with further updates expected after the MASORANGE consolidation in Q2.
Q: What is driving the strong performance in Africa and the Middle East, and how is Orange managing energy costs in these regions? A: Laurent Martinez, CFO, highlighted that the strong performance in Africa and the Middle East is driven by growth in money, 4G, fixed broadband, and B2B services. Orange is well-hedged on energy costs in Europe and benefits from solar power adoption in Africa and the Middle East, mitigating exposure to energy price fluctuations.
Q: Are there any plans for non-core asset sales, and what progress has been made on the copper network shutdown? A: Christel Heydemann, CEO, stated that Orange regularly reviews its portfolio for potential asset sales, but this is not directly linked to funding needs for acquisitions. Jerome Henique, EVP, reported successful progress in the copper network shutdown, with technical shutdowns for nearly 1 million households and ongoing RFPs for future phases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
