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Orange UK Declines to 954,000 Broadband ISP Subscribers

Posted: 31st Jul, 2009 By: MarkJ
ISP Orange UK (France Telecom) has issued its latest half-year results to the end of June 2009, which shows that the provider is still shedding broadband subscribers and has dropped from a total of 1m in Q4-2008 to 954,000 in Q2-2009.

However this rate of decline remains slower than it was for much of last year when, for example, the ISP lost -40,000 between Q2-2008 and Q3-2008. Some 45.3% of Orange's broadband ADSL subscribers are now on its more cost effective unbundled platform, which compares with 40.1% a year ago.

Second quarter 2009

Revenues from the United Kingdom totalled 1.288 billion euros, down 14.0% on an historical basis (9.9% of which is linked to the adverse impact of the pound sterling exchange rate) and down 4.5% on a comparable basis. Excluding the impact of rate cuts for call terminations and roaming, revenues from Personal Communication Services were up 0.2% in the second quarter of 2009 (after gaining 1.3% in the first quarter), whereas Home Communication Services continued falling at the same pace as in the first quarter.

EBITDA in the United Kingdom was 499 million euros in the first half of 2009, a 19.4% drop on an historical basis (16.4% of which is attributable to the adverse impact of the pound sterling exchange rate) and a 3.6-point drop on a comparable basis. The EBITDA margin was virtually stable in the first half of 2009, at 19.6%, showing a -0.2-point decrease in relation to the first half of 2008 on a comparable basis (-1.0 point on an historical basis). Excluding the impact of rate cuts for call termination and roaming in mobile services, the EBITDA margin improved by 2.1 points compared with the first half of 2008, reflecting tight management of commercial expenses and the growing share of direct sales.

For those still interested, Orange's remaining Dialup ( Narrowband ) subscribes have reduced to just 93,000 at 30th June 2009, which is a 50% drop over the same time last year. Most ISPs probably would have sold their remaining subscriber base by now but Orange isn’t just an Internet provider and thus has a more complicated business model to contend with.
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