April 23 (Reuters) - French telecoms operator Orange raised its full-year guidance on Thursday after reporting first-quarter earnings that slightly surpassed market expectations. The company now
France's Orange lifts outlook for 2026 as quarterly results top estimates
By Leo Marchandon
Orange's Financial Performance and Strategic Developments
First-Quarter Results Exceed Expectations
April 23 (Reuters) - French telecom group Orange raised its 2026 earnings forecast on Thursday after first-quarter results beat market expectations, with its Africa and Middle East region recording double-digit growth for a 12th straight quarter.
Orange expects earnings before interest, taxes, depreciation and amortization after leases (EBITDAaL), a key earnings metric used by telcos, to grow by more than 3% this year, having previously guided for around 3% growth.
First-quarter EBITDAaL rose 6.6% to 2.60 billion euros, ahead of analysts' consensus of 2.58 billion euros. Revenue climbed 3.5% to 10.1 billion euros ($11.8 billion), topping a forecast of 10 billion euros.
Regional Growth Highlights
Africa and the Middle East led the way with a 12.7% revenue jump, powered by 19.4% growth in mobile data. France, Orange's largest market, grew 2.3% to 4.4 billion euros, adding 54,000 fixed broadband and 40,000 mobile customers. Cybersecurity unit Orange Cyberdefense saw 9.2% growth.
Capital Expenditures and Cost Management
Capital expenditures were in line with the company's targets at 15.3% of revenue.
Risk Management and Hedging Strategies
Energy Market Exposure
Orange is largely insulated from energy market volatility, as it is fully hedged on European energy costs through 2026 and more than 90% covered for 2027, finance chief Laurent Martinez said during a webcast.
Energy Strategy in Africa and the Middle East
In Africa and the Middle East, this exposure is naturally limited by the widespread use of solar power on network sites, supplemented by fuel subsidies, he added.
Portfolio Management and Infrastructure Updates
Sale of Globecast Unit
On the portfolio front, CEO Christel Heydemann confirmed that the planned sale of satellite services unit Globecast was expected to close later in 2026.
She said the disposal was part of routine portfolio management rather than a response to balance sheet pressure, adding Orange had the capacity to fund its pending acquisitions through its own cash flow.
Network Decommissioning in France
In France, the company has begun decommissioning its 2G network, while the phaseout of its legacy copper infrastructure is accelerating, with 900,000 households disconnected in January.
Additional Information
($1 = 0.8548 euros)
(Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak)
