registration document France Telecom 2009 - Orange.com

analysis of the financial position and earnings
9
ANALYSIS OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
Home Communication Services in France
2009 vs. 2008
On a historical basis, home communication services revenues
in France fell by 2.1% between 2008 and 2009.
On a comparable basis, home communication services
revenues in France fell by 1.5% between 2008 and 2009 to
14,076 million euros. Excluding the impact of regulatory cuts
to rates for wholesale Internet access and interconnection to
France Telecom’s switched network, revenues would have
fallen by 0.4% year-on-year.
Between 2008 and 2009, home communication services
revenues in France fell by 1.5% on a comparable basis. This
change is analyzed below for each of the three components of
home communication services revenues in France.
Consumer services
On a comparable basis, consumer services revenues fell by
0.6% between 2008 and 2009 to 8,734 million euros, due to
the ongoing contraction in Public Switched Telephone Network
(PSTN) revenues, partially offset by fast growth in ADSL
broadband services. ARPU of c onsumer fi xed-line services
(see the Financial glossary appendix) moved up sharply, from
32.9 euros in 2008 to 34.2 euros in 2009, driven by growth
in Internet services. The year-on-year change in consumer
services revenues stemmed from:
■ a 15.9% increase in revenues from consumer on-line and
Internet access services, linked to the fast growth in ADSL
broadband services: 7% growth in the number of consumer
customers using ADSL broadband services, 12% growth in
the number of Liveboxes leased, 18% growth in the number
of subscribers to “Voice over IP” services and 44.6% growth
in the number of subscribers to “ADSL TV” offers;
■ a 13.3% decline in revenues from Consumer Calling
services, attributable mainly to i) the decline in switched
telephone traffi c market (measured by interconnection) due
to the growth in “Voice over IP” services, and ii) the impact
of rate cuts. The reduction in revenues is correlated to that of
total Public Switched Telephone Network (PSTN) traffi c billed
to France Telecom customers, which was down 12.8% yearon-year;
and
■ an 8.5% decline in Consumer Subscriptions revenues due
to the growth in full unbundling, wholesale line rentals (WLR)
and wholesale of naked ADSL access to third-party Internet
service providers (revenues of which are included in “Carrier
Services” revenues described below).
Carrier services
On a comparable basis, carrier services revenues fell by 0.6% to
4,644 million between 2008 and 2009. This slight decline was
attributable to:
■ a 2.7% fall in Other Carrier Services revenues, namely a
decline in both traffi c and transmission rates on France
Telecom’s switched network;
■ partially offset by a 0.3% increase in Domestic Carrier
services revenues due mainly to the continued increase in the
full unbundling of telephone lines, naked DSL and wholesale
line rentals, which made up for cuts to rates in January and
July 2009, preceded by another cut in July 2008. Domestic
interconnection revenues fell by 15.8% over the year due
to the decline in traffi c and cuts to interconnection rates in
October 2008 and July 2009.
Other home communication services
On a comparable basis, other home communication services
revenues fell by 16.3% between 2008 and 2009, due to a 26%
drop in public phone traffi c on the one hand and the downward
trend in phone terminal leasing business on the other hand.
In addition, the decision to start charging Internet hotline
services at the price of a local call as of June 1, 2008 and the
discontinuation of the e-commerce business contributed to the
year-on-year decline in revenues.
2008 vs. 2007
On a historical basis, home communication services revenues
in France fell by 0.2% between 2007 and 2008. This decline
takes into account the impact of internal reorganizations
between operating segments without any impact at Group level.
On a comparable basis, home communication services
revenues in France fell by 0.4% to 14,374 million euros between
2007 and 2008. This slight drop is analyzed below for each
of the three components of home communication services
revenues in France.
Consumer services
On a comparable basis, the 0.9% decline in consumer services
revenues to 8,795 million euros between 2007 and 2008 was
attributable to the contraction in the Public Switched Telephone
Network (PSTN) business, which was not quite offset by the fast
growth in ADSL broadband services.
Carrier services
On a comparable basis, carrier services revenues totaled
4,684 million euros in 2008, up 3.3% compared with 2007. This
year-on-year growth was attributable to:
■ a 6.3% increase in Domestic Carrier services revenues
linked for the most part to fast growth in the ADSL broadband
market and, in particular, the unbundling of telephone lines;
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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