France Telecom Group, which logged the heaviest net losses (20.7bn euros) in the entire history of the French economy last year, has every reason to be pleased with its mobile telephony division, Orange. Total revenues of Orange in Q1, 2003 were 4.26bn euros, up 9.4% over Q1, 2002.
Orange’s total revenues in Romania in the quarter ended March 31 increased by 6.6% from 91 million euros to 97 million euros. On the other hand, the annual average revenue per user (ARPU) went down from 256 euros (2002) to 190 euros, which trend the company compensates by focusing on data services and the corporate segment.
Orange Romania’s revenues last year reached 393 million euros, up from the 378 million in 2001.
Revenue growth is extremely important to France Telecom, which is making efforts to cut its billion dollar debts. As Orange Romania’s CEO Bernard Moscheni was saying recently, France Telecom had requested all the companies in the group, even the smaller ones, to boost revenues to speed up debt cutting.
The news about higher revenues for Orange Romania is also good news for the investment funds that have financially supported the company in Bucharest ever since 1997 and will be looking for options to sell their interests over the next two years. The highest stake of all the investment funds is held by AIG New Europe Fund, part of the US-based financial group AIG, which owns more than 10% in Orange Romania. The fund bought into this business in 1998 and might start looking for buyers this year, as the investment is ripe. Another fund to go buyer hunting for its Orange Romania interest this year is SociA©tA© GA©nA©rale Romania Fund, which holds 1% in the company. victor@zf.ro



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