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Orange (ORAN)

- NYSE
  • Fri, Mar. 20, 5:09 PM
    • Orange (NYSE:ORAN) has acquired the 55.5% of French cloud infrastructure (IaaS) service provider Cloudwatt it didn't own from defense firm Thales and state-backed lender CDC. Terms are undisclosed.
    • With the French government's blessing, Cloudwatt was launched in 2012 to create a local alternative to the IaaS services of U.S. tech giants (Amazon, Google, Microsoft, etc.) - its Web site tries hard to sell would-be customers on data sovereignty and security (still a thorny issue for U.S. cloud providers). However, all signs suggest Cloudwatt has made limited traction thus far against rivals that have larger feature sets and are willing to price aggressively.
    • Previously: Orange reportedly in talks to sell Dailymotion stake
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  • Tue, Mar. 17, 4:26 AM
    • Orange (NYSE:ORAN) will invest over €15B in its networks over the next four years as part of its new plan, dubbed "Essentials 2020", aimed at reviving sales growth and profitability after years of decline.
    • The French telecom operator faces fierce competition in many of its markets, particularly in Europe, where telecoms have been competing hard for market share by slashing prices for mobile and broadband services.
    • Orange aims for sales and EBITDA to grow again by 2018.
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  • Fri, Mar. 13, 12:40 PM
    • Having not succeeded at first (or second), Orange (ORAN -1.8%) is trying again to sell a stake of about 49% in video site Dailymotion -- this time through exclusive talks with Hong Kong telecom PCCW (OTCPK:PCCWY).
    • PCCW's made an offer valuing Dailymotion at €250M ($264.5), a source tells The Wall Street Journal.
    • The goal would be expansion, an area in which France-based Dailymotion hasn't kept up with competitors like YouTube. The French government, which killed a 2013 stake sale to Yahoo, may now be more open to foreign investment.
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  • Wed, Mar. 4, 12:57 PM
    • While rival Royal KPN (OTCPK:KKPNY +1%) is hoping to draw €1B in selling Base, its Belgian mobile division, France's Orange (NYSE:ORAN) -- which has a majority stake in Belgium's No. 2 provider Mobistar -- says it wants to stay in the country.
    • Orange's Gervais Pellissier says his company hasn't been contacted about the Base sale but: "Consolidation is necessary in the market and it would make sense for someone already in the country to buy it."
    • He expected if Mobistar got involved, in an effort to better take on market leader Belgacom, it would be tough to get the deal approved by regulators.
    • Strategic bidders or private-equity funds still seem the likely candidates to buy Base in a market hit by a price war and ripe for consolidation.
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  • Mon, Mar. 2, 11:28 AM
    • At Mobile World Congress, Orange (NYSE:ORAN) discussed details around its plan to bring a $40 3G smartphone bundle to Africa, a move that could help it build a lead in a large growth market.
    • The package includes the device (called Klif) along with a six-month package of voice minutes, text and a 3G data bundle reportedly at 500MB/month, all for the one-time price -- bringing monthly costs under $7.
    • The Klif phone will run on Firefox's mobile OS, which could help it get a foothold where more expensive Android smartphones might not.
    • While developed markets are saturated with high-quality smartphones (and smartphone users), sub-Sarahan Africa has a much smaller penetration rate for high-speed mobile data, though the market should grow 33% this year.
    • Notably, Orange isn't backing away from Android -- it's committed to the Pixi, its cheapest Android phone, which still costs about 40% more than the Klif.
    • The new package goes on sale in Q2 in 13 countries. Orange has 97.5M customers in Africa.
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  • Sun, Mar. 1, 11:01 AM
    • Orange (NYSE:ORAN) and Telecom Italia (NYSE:TI) have been discussing a possible alliance, Orange's chief executive told the Journal de Dimanche.
    • "There are no negotiations ongoing just exchanges of points of view between the two management teams," said CEO Stephane Richard. "It would be an attractive European consolidation opportunity."
    • The news comes after a recent spate of deals in the European telecoms sector, with BT buying EE from Orange/Deutche Telekom and Hutchison Whampoa purchasing O2 from Telefonica.
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  • Tue, Feb. 24, 8:02 PM
    • U.K. mobile firms are likely looking at a license fee increase as regulator Ofcom follows its government mandate to ensure spectrum fees reflect market value.
    • EE (ORAN, OTCQX:DTEGY) -- on its way to becoming part of BT Group (NYSE:BT) -- Three (OTCPK:HUWHY), O2 (NYSE:TEF) and Vodafone (NASDAQ:VOD) could see fees for the 900 MHz and 1800 MHz bands rising to a total £223.3M/year ($345.5M/year) -- up from the combined £64.4M/year they pay now.
    • Considering proportional increases, EE might see its current £24.9M/year rise to £75.6M.
    • Related mobile stocks were up today, with the exception of Vodafone, which saw a downgrade from Bank of America: ORAN +1.7%; OTCQX:DTEGY +1.9%; TEF +1.4%; OTCPK:HUWHY +0.3%; VOD -3.3%.
    • Previously: Vodafone lower after BofA downgrade (Feb. 24 2015)
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  • Tue, Feb. 17, 3:04 AM
    • Following the release of its Q4 results, Orange (NYSE:ORAN) forecast a slight decline in earnings for the coming year amid tough competition in its key home market.
    • Net profit fell 51% Y/Y to €925M during the quarter, weighed down by charges linked to the group’s part-time pension plan, litigation settlements and reorganization of its real-estate assets.
    • The company said it expects EBITDA to reach between €11.9B-€12.1B this year, a decline from the €12.19B posted in 2014, but pledged to hold the line on costs and deliver a stable dividend.
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  • Wed, Feb. 11, 3:36 PM
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  • Mon, Feb. 9, 7:11 PM
    • Orange SA (NYSE:ORAN) slipped 1.8% today despite an upgrade to Overweight by Barclays.
    • The company's facing an organizational restructuring this year, and a key piece came with the agreement by BT Group to acquire EE -- Britain's largest mobile service provider and a joint venture between Orange and Deutsche Telekom.
    • Orange will receive about £3.4B (about $5.2B) in cash as well as a 4% stake in the new BT/EE combination, while Deutsche Telekom gets a bigger stake but less in cash.
    • Orange is also pursuing Jazztel, which operates in enterprise and consumer markets in Spain, for around $4.4B -- for which BT's cash will come in handy.
    • At $17.61, Orange is just 6.3% lower than its 52-week high.
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  • Wed, Feb. 4, 9:36 PM
    • BT Group (NYSE:BT) has reportedly put the finishing touches on its £12.5B purchase of EE, the UK's largest mobile operator.
    • EE's joint-venture partners each get their piece of the deal: Deutsche Telekom (OTCQX:DTEGY) will get a board slot and 12% stake in BT, and Orange SA (NYSE:ORAN) gets more cash and a 4% BT stake.
    • The pressure's now on Vodafone (NASDAQ:VOD), who recently abandoned an effort to get BT broken up and now must try a square-one entry into the British broadband market even as competitors are consolidating (Hutchison Whampoa plans a £10.25B buyout of O2).
    • Vodafone will likely pursue forcing the now-giant BT/EE to sell spectrum. “Whatever the regulatory approach it is crucially important that all providers must be able to compete effectively with a combined BT-EE," says a Vodafone spokesman.
    • Previously: BT Group profits up; pensions weighing on firm (Jan. 30 2015)
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  • Thu, Jan. 22, 5:20 PM
    • The FT reports Telefonica (NYSE:TEF) is "poised to agree a cash deal of more than £10bn ($15B)" to sell British mobile carrier O2 to Hutchison Whampoa, owner of rival carrier Three. A deal could be announced "as early as Friday morning."
    • The paper notes the deal would create the U.K.'s largest mobile carrier, claiming 31M+ subs and a 41% market share. EE, which BT is in talks to acquire from Orange (NYSE:ORAN) and Deutsche Telekom (OTCQX:DTEGY), claims a 32% share, and Vodafone (NASDAQ:VOD) a 24% share.
    • U.K. telecom regulator is bound to closely scrutinize a sale, given its historical preference for wanting four mobile carriers and Three's history of aggressive pricing.
    • Telefonica/Hutchison reportedly are looking to argue BT, which (like Vodafone) is looking to offer quad-play bundles, is "already changing the boundaries of how telecoms should be judged alongside TV and broadband services." The FT states regulators are likely to push for O2/Three to sell some of its spectrum for use by MVNOs such as TalkTalk, Tesco Mobile, and Virgin Media.
    • TEF +0.6% AH. An O2 sale would further Telefonica's efforts to lower its huge debt load. The carrier's net debt stood at  €41.2B ($46.8B) as of September.
    • Previously: Hutchison in talks for O2 mobile network
    • Update: Hutchison says it's in "exclusive talks" to buy O2 from Telefonica for over £10B. Telefonica has confirmed.
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  • Mon, Jan. 5, 9:57 AM
    • With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
    • Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
    • Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
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  • Dec. 18, 2014, 7:58 AM
    • BT (NYSE:BT) is preparing a giant financing package including a £2B share placing to help fund its planned takeover of EE, The Telegraph reports.
    • The share placing will help keep the telecom giant’s level of debt manageable as it faces big bills next year from an increase in pension payments and costs.
    • Several of BT’s top ten investors have said they would support a share placing or rights issue to help finance the deal, worth a total of £12.5B, including £2B of EE debt.
    • BT is also expected to raise around £3B in the bond markets to help win the support of existing shareholders who may be resistant to any greater dilution.
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  • Dec. 16, 2014, 9:10 AM
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  • Dec. 15, 2014, 12:27 PM
    • BT (BT +0.2%) has entered into exclusive buyout talks with Orange (ORAN -0.9%) and Deutsche Telekom (OTCQX:DTEGY) regarding the purchase of their EE U.K. mobile JV. The exclusivity period will last several weeks, during which time BT will conduct due diligence.
    • The companies are discussing a deal in which BT would pay £12.5B ($19.5B) in cash and stock to acquire EE, which claims 24.5M mobile subs (#1 in the U.K.). Deutsche would gain a 12% stake in BT, and have the right to appoint one director. Orange would have a 4% stake.
    • BT and Orange have been halted. Telefonica (TEF -2.3%), which was talking with BT about selling U.K. carrier O2, has joined many other European names in selling off. Deutsche fell 1.8% today in Frankfurt.
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Company Description
Orange SAoperates as a telecommunications operator. It offers fixed and mobile communications, data transmission, the Internet and multimedia, mobile telephone services and network services among others.
Sector: Technology
Country: France