Mobiles save France Telecom blushes in 3Q09

An increase in mobile users of almost 10% to 128.8 million helped France Telecom increase its subscriber base to 189.1 million, up 6.6% year on year September 2009.

An increase in mobile users of almost 10% to 128.8 million helped France Telecom increase its subscriber base to 189.1 million, up 6.6% year on year September 2009. Revenues were flat at €38.1bn for the first nine months of 2009.

France Telecom has had a nightmare year. Last week it said it would spend up to €1bn to restore morale following the suicide of two dozen employees in the wake of aggressive restructuring.

The recession has not helped either, making it hard to find profits. Profits in Africa and the Middle East rose 5.2%, but Romania crashed 18.1%, and the normally profitable Enterprise segment was down 2.8% year-on-year.

Earnings before interest, tax and depreciation were down slightly to 35.1%, down 0.7 points on a year ago, helping to cut capital spending 1.8% to 9.8% of revenues. The telco confirmed its advice on cash flow, which should be steady at €8.0bn, it said.

CEO Didier Lombard said revenues from France were up 0.6% and the take-up of new services continued to spread, particularly those related to 3G and digital TV offers.

"We are currently in negotiations with trade unions on a new social contract that will be proposed to employees and will form an integral part of the group's development in France," he said.

Read more on Voice networking and VoIP

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close