Orange Aims for Low-Single-Digit EBITDAaL Growth and EUR 0.72 Dividend in 2024

Orange operates in several countries, but its strongest region is France, where it enjoys a comfortable position as the incumbent operator and has good relationships with the government, which owns 23% of the company. Orange's strategy in France is simple: Maintain market share in mobile and fixed markets and try to offset potential pricing pressures with employee cost reductions, where Orange is limited by French regulations. Orange has also been the main installer of fiber-optic cables in France, which will result in better unit economics for the company in the long term as the payment scheme set by French regulators favors players that took more risks in the buildout phase. In the mobile segment, Orange has maintained a relatively stable market share for the past decade but with shrinking average revenue per user caused by Iliad’s entrance, which has pruned the company’s revenue. Over the past decade, Orange has managed to keep its EBITDA margins stable in France, offsetting low revenue growth with cost reductions. We expect this to be the strategy in the future.