Weak pound hits Orange revenues


The sliding value of the pound saw Orange UK’s Q1 revenues drop 17.1 per cent year on year to £1.12 billion despite an 82 per cent increase in mobile broadband customers and 10 per cent increase in contract customers.

On a comparable basis, revenues were down 0.6 per cent, consistent with Q4’s 0.7 per cent decline.

The network’s contract customer base reached 6.3 million as at March 31, a year on year increase of 10.1 per cent. Contracts represented 39.7 per cent of the customer base, compared with 36.3 per cent a year earlier.

The total number of UK customers increased 0.6 per cent to 15.85 million. This figure does not include MVNO customers, which quadrupled in one year from 137,000 to 585,000 at March 31. Its MVNO partners are Lycamobile, IDT Mobile, Blyk and Globalcell.

Revenues from data services increased 3.3 per cent and now account for 24.8 per cent of total revenues, with the number of mobile broadband customers also up 82 per cent year on year to 3.824 million.

Revenues from home communication services were down to £53.8 million; a 31.8 per cent decrease due to the drop in the exchange rate but 18.3 per cent on a comparable basis. The figure reflects an 11.7 per cent drop in the number of ADSL broadband customers to 977,000.

An Orange spokesman said: “The stability in the UK has been applauded, especially in the tough economic context and is a strong indicator that the work done over the past year is producing the goods.

“The UK has therefore made an important contribution to the group’s resilience in what has been a very tough quarter.”