registration document France Telecom 2009 - Orange.com

9 ANALYSIS
analysis of the financial position and earnings
OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
2009 vs. 2008
Income tax expense was 2,295 million euros in 2009, down
604 million euros compared with 2008 (2,899 million euros). The
reduction was attributable mainly to the fall in the deferred taxes
expense for the Spain (619 million euros) and France (281 million
euros) tax groups, partially offset by a 353 million euro year-onyear
reduction in deferred taxes for other subsidiaries (those
lying outside the France, United Kingdom, Spain and TP Group
tax groups).
2008 vs. 2007
Income tax expense was 2,899 million euros in 2008, compared
with an expense of 1,245 million euros in 2007, representing an
increase of 1,654 million euros, of which 1,381 million euros
in deferred taxes. The deferred taxes expense for the France
tax group was 1,925 million euros in 2008, compared with an
expense of 502 million euros in 2007. In 2007, the France tax
group recognized 1,573 million euros in deferred tax assets,
partially offsetting the 2,075 million euro expense for the period.
9.1.2.3.3 Consolidated net income after tax
of continuing operations
2009 vs. 2008
The consolidated net income after tax of continuing operations
was 3,265 million euros in 2009, compared with 4,089 million
euros in 2008, down 824 million euros. This decline stemmed
from a fall in operating income (2 086 million euros), partially
counterbalanced by an improvement in net fi nance costs
(658 million euros) and a reduction in the income tax expense
(604 million euros) between the two periods.
2008 vs. 2007
The consolidated net income after tax of continuing operations
was 4,089 million euros in 2008, down 2,559 million euros
compared with 2007 (6,648 million euros). The increase in
the income tax expense (1,654 million euros) and, to a lesser
extent, the fall in operating income (595 million euros) and the
deterioration of net fi nance costs (310 million euros) explain the
fall between 2007 and 2008.
9.1.2.3.4 Consolidated net income after tax
of continuing operations
Due to the prospective joint venture between Orange and
T-Mobile in the United Kingdom (see Section 9.1.1.4 Key
events in 2009), the United Kingdom operating segment
is treated as an operation held for sale. Consequently, the
net income and expenses of the United Kingdom operating
segment are recorded in the consolidated net income after tax
of discontinued operations, and the data reported for the 2007
and 2008 fi nancial years have been restated (see Notes 3 and
11 to the consolidated fi nancial statements).
The United Kingdom operating segment is still presented
as an operating segment in the segment information of the
consolidated fi nancial statements.
2009 vs. 2008
The consolidated net income after tax of discontinued operations
was 200 million euros in 2009, compared with 403 million euros
in 2008, down 203 million euros. The decline between 2008 and
2009 was attributable to income tax expense and, to a lesser
extent, the decline in operating income (see Section 9.1.3.2.3
Operating income - United Kingdom ), partially offset by an
improvement in net fi nance costs.
2008 vs. 2007
The consolidated net income after tax of discontinued operations
was 403 million euros in 2008, up 232 million euros compared
with 2007 (171 million euros). The change between 2007 and
2008 was attributable to a reduction in the income tax expense
and, to a lesser extent, an increase in operating income (see
Section 9.1.3.2.3 Operating income - United Kingdom ), partially
offset by a deterioration in net fi nance costs.
9.1.2.3.5 Consolidated net income after tax
2009 vs. 2008
The France Telecom Group’s consolidated net income after tax
was 3,465 million euros in 2009, compared with 4,492 million
euros in 2008, down 1,027 million euros. The decline in the
consolidated net income after tax of continuing operations
(824 million euros) and, to a lesser extent, the decline in the
consolidated net income after tax of discontinued operations
(203 million euros), explain the decrease in the France Telecom
Group’s consolidated net income after tax between 2008 and
2009.
The consolidated net income attributable to non-controlling
interests was 468 million euros in 2009, compared with
423 million euros in 2008. After taking into account the
consolidated net income attributable to non-controlling
interests, the consolidated net income attributable to owners of
the parent fell from 4,069 million euros in 2008 to 2,997 million
euros in 2009, down 1,072 million euros.
2008 vs. 2007
The France Telecom Group’s consolidated net income after
tax was 4,492 million euros in 2008, down 2,327 million
euros compared with 2007 (6,819 million euros). This decline
stemmed from the deterioration in the consolidated net income
after tax of continuing operations (down 2,559 million euros),
partially offset by the increase in the consolidated net income
after tax of discontinued operations (up 232 million euros)
between 2007 and 2008.
The consolidated net income attributable to non-controlling
interests was 423 million euros in 2008, compared with
519 million euros in 2007. After taking into account the
consolidated net income attributable to non-controlling
interests, the consolidated net income attributable to owners
of the parent was 4,069 million euros in 2008, compared with
6,300 million euros in 2007, down 2,231 million euros.
9.1.2.4 Group capital expenditures
Capital expenditures on tangible and intangible assets
excluding licenses (CAPEX) are not defi ned under IFRS. For
further information on the calculation of CAPEX and the reasons
why the France Telecom Group uses this aggregate, see
Section 9.1.5.4 Financial aggregates not defi ned under IFRS
and the Financial glossary appendix.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM