Orange SA reported a positive sales trajectory for the third quarter, driven by its premium service bundles that helped retain customers amid stiff competition. The company achieved a sales increase of 1.6%, reaching €10 billion ($11 billion), surpassing analyst expectations of €9.99 billion.
The CEO of Orange France noted that the core business remained stable despite rival offerings. This performance alleviated concerns among analysts and investors who were closely monitoring the potential impact of lower pricing from competitors such as Free and Bouygues.
Following the announcement, Orange shares rose by 1.5% to €10.28 in early trading in Paris. However, the stock’s performance has remained largely unchanged for the year.
Despite its success, Orange has recently discounted some packages to reduce customer churn. The company reported a loss of 14,000 converged customers in France during the quarter, in addition to 17,000 in the previous quarter. The leadership aims to stabilize this segment by the second quarter of the following year.
In Spain, the company faces price pressures after merging its operations with Masmovil Ibercom SA. The competitive landscape in Europe has affected telecom earnings, prompting calls for regulatory consolidation.
Orange’s overall adjusted earnings before interest, taxes, depreciation, and amortization rose 2.7% to €3.35 billion. The company also reported a notable 10.5% revenue increase in Africa and the Middle East, driven by demand for mobile data and its Orange Money service, although sales in the rest of Europe declined by 2.1%.