registration document France Telecom 2009 - Orange.com

9 ANALYSIS
analysis of the financial position and earnings
OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
9.1.2.2 From Group EBITDA to operating income
(in millions of euros)
2009
Financial years ended December 31
2008
2008
basis (1) basis
comparable historical
Chg. (%)
Chg. (%)
basis (1) basis
comparable historical
2007
historical
basis
EBITDA 14,794 16,832 17,083 (12,1)% (13,4)% 17,750
Depreciation and amortization (6,417) (6,640) (6,859) (3.4)% (6.4)% (7,077)
Impairment of goodwill (449) (267) (270) 68.3% 66.2% (26)
Impairment of fi xed assets (69) (15) (9) ns ns (107)
Operating income 7,859 9,910 9,945 (20.7)% (21.0)% 10,540
(1) Unaudited data. See Section 9.1.5.1 Transition from data on a historical basis to data on a comparable basis.
Depreciation and amortization
DEPRECIATION
AND AMORTIZATION
(in millions of euros)
2009
Financial years ended December 31
2008
2008
basis (1) basis
comparable historical
Chg. (%)
Chg. (%)
basis (1) basis
comparable historical
2007
historical
basis
France (2,192) (2,382) (2,385) (8.0)% (8.1)% (2,657)
Spain (1,001) (1,101) (1,102) (9.0)% (9.0)% (1,129)
Poland (959) (1,000) (1,234) (4.2)% (22.4)% (1,172)
Rest of the World (1,245) (1,231) (1,213) 1.2% 2.7% (1,147)
Enterprise (358) (364) (363) (1.7)% (1.3)% (421)
International Carriers & Shared Services (662) (563) (562) 17.8% 17.4% (551)
GROUP TOTAL (6,417) (6,640) (6,859) (3.4)% (6.4)% (7,077)
(1) Unaudited data. See Section 9.1.5.1 Transition from data on a historical basis to data on a comparable basis.
2009 vs. 2008
On a historical basis, depreciation and amortization fell by
6.4% or 442 million euros between 2008 and 2009. Half the
year-on-year decline in depreciation and amortization stemmed
from the positive impact of foreign exchange fl uctuations, which
totaled 216 million euros.
On a comparable basis, depreciation and amortization fell by
3.4% or 223 million euros between 2008 and 2009 to 6,417 million
euros in 2009. This decline was attributable mainly to:
■ the end of the amortization of certain fi xed assets relating
to the fi xed-line and mobile telephony businesses in France
between 2008 and 2009;
■ the reduction in depreciation and amortization in Spain, linked
to i) the reduction in the amortization of the customer bases,
and ii) the recognition of accelerated amortization of certain
fi xed assets in 2008;
■ partially counterbalanced by the growing amortization of
recent investments in the fi eld of innovation (particularly with
respect to customer service platforms relating to recent
“Voice over IP” technologies and television) in International
Carriers & Shared Services.
2008 vs. 2007
On a historical basis, depreciation and amortization fell
by 3.1% or 218 million euros between 2007 and 2008. The
year-on-year decline takes into account factors that increased
depreciation and amortization, namely i) the negative impact of
foreign exchange fl uctuations, which totaled 91 million euros,
partially offset by ii) the positive impact of changes in the scope
of consolidation and other changes, which represented 57
million euros between 2007 and 2008.
On a comparable basis, depreciation and amortization fell by
3.5% or 252 million euros to 6,859 million euros between 2007
and 2008. The year-on-year decline stemmed primarily from i)
the reduction in the accelerated amortization of certain fi xed
assets (substantially less in 2008 than in 2007) and the end of the
amortization of certain non-current assets in 2008, particularly
in relation to the mobile telephony business in France and the
fi xed-line telephony business in Poland, ii) the reduction in the
amortization of the customer bases in Spain, partially offset by
iii) the year-on-year increase in depreciation and amortization for
international subsidiaries in mobile and fi xed telephony.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM