The logo of the French telecom operator Orange
(Reuters) -Orange is ready to engage in discussions with a view to consolidating the telecoms market in France, said its director general Christel Heydemann on Tuesday.
In addition to Orange, three other operators share the very competitive French market – SFR, property of Altice France, Bouygues Telecom, a subsidiary of the Bouygues and Free conglomerate, owned by Iliad.
While Altice France is in the process of finalizing a restructuring plan for its debt, speculation is going well in terms of the future of SFR and a possible interest of its direct competitors.
“As you know, SFR is restructuring its debt, it is not yet finished so we can not comment on what SFR wants to do,” said Orange Director of Orange, Christel Heydemann, during a call conference with analysts after the publication of the group’s half -yearly results.
“But I can confirm that, France being our first market, we are ready to commit ourselves and, in fact, preliminary discussions are underway between operators,” she added.
She did not specify if SFR was one of the operators concerned.
“We think there is a need for consolidation, both in France and in Europe,” she added.
Forecasting
For the first half, Orange displays an increase of 3.8% of its Ebitdaal, at 5.68 billion euros, slightly above market expectations, which tapped on average on 5.65 billion according to a consensus established by the company.
Orange noted its Ebitdaal forecast – its reference indicator – now focusing on growth greater than 3% for 2025.
The organic cash flow of telecoms activities increased by 7.7%, to 1.67 billion euros, online with Orange’s objective to generate at least 3.6 billion euros over the year.
The group confirmed its intention to finalize the signing of its joint venture agreement for the Spanish optical fiber network in the expected deadlines.
“The signature will be effective by the end of the summer, and the closure will take place before the end of the year,” said Laurent Martinez, financial director, during a call conference. Masorange, a joint venture between Orange and Masmovil, will hold 50% of this new company, while Vodafone Spain, owned by Zegona Communications, will hold 10%.
The remaining 40% must still be awarded to an investor, Laurent Martinez refusing to comment whether a third partner had been identified.
(Written by Noémie Naudin and Leo Marchandon, edited by Blandine Hénault)