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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