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Orange's Q4 profit falls, but forecasts earnings stability

  • Orange's (ORAN) Q4 EBITDA dropped to €2.87B ($3.94B) from €3.14B a year earlier.
  • Revenue fell to €10.22B from €10.92B, with sales hurt by a price war in France's mobile market, as well as declining revenues in other European countries such as Poland and Spain.
  • Orange warned that the situation in France will hurt its earnings this year, although it forecast that FY EBITDA would be €12.1-12.6B vs €12.1B in 2013. That would be the first time in at least five years that EBITDA doesn't fall.
  • The company's results come as Vivendi mulls an offer from Bouygues for SFR in a deal that would combine the number two and three players in the market. Orange is number one. "This market needs consolidating," Orange CFO Gervais Pellissier said.
  • Orange cut its annual dividend to €0.60 a share from €0.80 previously.
  • Shares are +7.7% in Paris. (PR)

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