Strong Group Revenue Growth
Q1 revenues reached EUR 10.1 billion, up +3.5% year-on-year (underlying growth ~+2.5% after excluding expected positive wholesale nonrecurring items).
Orange SA
· ORANY
April 23rd, 2026
Summary
- Earnings Call Date:
- 2026-04-23
- Change Since:
- -7.17%
- Next Earnings Date:
- 2026-07-28
Earnings Call Sentiment
PositiveThe call conveyed a broadly positive performance: strong Q1 revenue (EUR 10.1bn, +3.5%) and EBITDAaL (+6.6%) growth, clear retail momentum across geographies (notably +13% in MEA), disciplined capex and strategic progress (AI launches, product innovation, MASORANGE approval). However, part of the quarter's strength was supported by anticipated wholesale nonrecurring items (~EUR 100m), mobile ARPU pressure and persistent competitive dynamics in France and Spain. Additional uncertainties include regulatory complexity around the Altice/SFR consortium bid, ongoing Orange Business challenges and geopolitical/energy risks—factors that explain conservative guidance despite strong Q1. On balance, positives (organic growth, execution, product launches, MEA outperformance and guidance upgrade) outweigh the negatives.
Company Guidance
Orange upgraded 2026 group EBITDAaL guidance from "circa 3%" to "above 3%" while confirming the rest of its 2026 guidance; Q1 revenues were EUR 10.1bn (+3.5% YoY) and Q1 EBITDAaL rose 6.6% (underlying, excluding anticipated French wholesale non‑recurring items: revenues ~+2.5% and EBITDAaL ~+3.5%). Retail services grew ~+1.1% in France and Europe and +13% in Middle East & Africa, French wholesale non‑recurring items were ~EUR 100m, eCapEx/sales remained around 15%, and regional outlooks were reconfirmed — France: stable‑plus EBITDAaL growth; Europe: low‑to‑mid single‑digit EBITDAaL growth; MEA: high single‑digit EBITDAaL growth. The MASORANGE closing is expected in Q2 (revenues +1.2% YoY, >400k mobile lines, synergies on track), and Orange says European energy is ~100% hedged for 2026 (>90% in 2027).
Robust EBITDAaL Performance and Guidance Upgrade
EBITDAaL rose +6.6% in Q1 (underlying ~+3.5%). Management upgraded 2026 group EBITDAaL guidance from circa +3% to above +3% based on Q1 momentum.
Retail Services Strength — France, Europe and MEA
Retail services growth: France & Europe retail services ex-PSTN +1.1% and Middle East & Africa retail services +13% in Q1. Africa & Middle East delivered double-digit revenue growth for the 12th consecutive quarter, with ~2/3 of countries up double digits.
Solid Commercial Metrics in France and Europe
France net adds: fixed +55k (record since Q4 2021), mobile +40k, convergence +15k. France churn at lowest levels since Q2 2022 for fixed and mobile churn improved >1 percentage point. Europe net adds: mobile +66k, FTTH +51k, convergence +21k. NPS in France >34, 11 points above #2.
Enterprise & IT Growth and New Offers
Orange Business IT&IS grew +12% with Orange Cyber Defense >+9%. Announced partnerships (Tech Mahindra) and >10/14 new innovative offers including anti‑drone-as-a-service and AI-powered cybersecurity solutions.
CAPEX Discipline
eCapEx to sales around 15% in Q1, in line with guidance, supporting disciplined investment while maintaining growth.
Strategic Initiatives and Network Modernization
Launched AI assistants (Sharlie for Sosh, MAIA for sales teams), new loyalty programs, began decommissioning 2G and copper (closing ~900k households in initial phases) and progressing commercial shutdown (21.5m households closed for copper offer sales).
MASORANGE Transaction Progress
MASORANGE antitrust approval in Spain received; closing expected in Q2 2026. MASORANGE revenues +1.2% year-on-year, >400k mobile lines, synergies on track and outlook confirmed.
Operator
Hello to all of you. Welcome to Orange Q1 2026 Results Conference. For your information, this conference will be recorded. The call today will be hosted by Christel Heydemann, our CEO; Laurent Martinez, our CFO, with other members of Orange Executive Committee for the Q&A session after the presentation. So let's start with the presentation. Christel Heydemann, the floor is yours.
Christel Heydemann
Good morning. Thank you for joining our Q1 results presentation. Before getting into our Q1 results, I would like to mention that last week in France, we announced entering into exclusive negotiation with the Altice France Group for the acquisition of SFR jointly with Bouygues Telecom and the Free-iliad Group. Our joint offer reflects a total enterprise value of EUR 20.35 billion for the Altice France assets under consideration. Orange's share within the split of price and value between buyers would be around 27%. This transaction would help sustain and strengthen the entire digital economy and the telecommunications sector in France. There is no certainty though, that this process will result in an agreement. In parallel, in Spain, we already received the approval of the antitrust authorities, and we are confirming a closing of MASORANGE transaction in Q2.
Back to our results. The year 2026 started with the presentation of our new strategic plan, Trust the future. This plan was well received, and we are now fully focused on its execution. In Q1, we reported very strong financial results with group revenues up by plus 3.5% and EBITDAaL up at plus 6.6%. This is fueled by a very robust retail service...
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