registration document France Telecom 2009 - Orange.com

analysis of the financial position and earnings
9
ANALYSIS OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
On a comparable basis, the operating income of the United
Kingdom operating segment increased by 60.4% between
2007 and 2008, thanks mainly to stronger EBITDA, partially
offset by an increase of 27 million euros in depreciation and
amortization.
9.1.3.2.4 Capital expenditures on tangible and
intangible assets excluding licenses -
United Kingdom
2009 vs. 2008
On a historical basis, the capital expenditures on tangible and
intangible assets excluding licenses of the United Kingdom
operating segment fell by 21.7% to 355 million euros between
2008 and 2009. Half the decline was attributable to the impact
of foreign exchange fl uctuations, which represented 48 million
euros year-on-year.
On a comparable basis, the capital expenditures on tangible
and intangible assets excluding licenses of the United Kingdom
operating segment fell by 12.3% between 2008 and 2009 due
to the plan to reduce and optimize capital expenditures in line
with the decline in business.
2008 vs. 2007
On a historical basis, the capital expenditures on tangible and
intangible assets excluding licenses of the United Kingdom
operating segment fell by 12.9% year-on-year to 453 million
euros in 2008, due mainly to the negative impact of foreign
exchange fl uctuations, which represented 72 million euros yearon-year.
On a comparable basis, the capital expenditures on tangible
and intangible assets excluding licenses of the United Kingdom
operating segment increased by 1.2% between 2007 and
2008, following the increase in capital expenditures relating to
3G network infrastructure and the rollout of service platforms.
9.1.3.3 Spain
SPAIN
(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
Revenues 3,887 4,067 4,067 (4.4)% (4.4)% 3,963
EBITDA (2) 729 614 614 18.8% 18.8% 661
EBITDA/Revenues 18.8% 15.1% 15.1% 16.7%
Operating income (274) (630) (630) (56.5)% (56.5)% (469)
Operating income/Revenues (7.0)% (15.5)% (15.5)% (11.8)%
CAPEX (2) 440 569 569 (22.6)% (22.6)% 624
CAPEX/Revenues 11.3% 14.0% 14.0% 15.7%
Average number of employees 3,230 3,490 3,490 (7.5)% (7.5)% 3,410
(1) Unaudited data. See Section 9.1.5.1 Transition from data on a historical basis to data on a comparable basis.
(2) Operating income before depreciation and amortization, and impairment losses (EBITDA) and capital expenditures on tangible and intangible assets excluding licenses (CAPEX) are
not defi ned under IFRS. For further information on the calculation of EBITDA and CAPEX, and the reasons why the France Telecom Group uses these aggregates, see Section 9.1.5.4
Financial aggregates not defi ned under IFRS and the Financial glossary appendix.
9
The “Spain” operating segment houses personal (mobile
telephony) and home (fi xed-line telephony and Internet)
communication services in Spain.
9.1.3.3.1 Revenues - Spain
On a historical basis and on a comparable basis, the revenues
of the Spain operating segment fell by 4.4% to 3,887 million
euros between 2008 and 2009, amidst a very severe recession.
Personal Communication Services in Spain
2009 vs. 2008
On a historical basis and on a comparable basis, personal
communication services revenues in Spain fell by 4.3% to
3,216 million euros between 2008 and 2009. The decline was
attributable to a 9% fall in ARPU, on the back of rate reductions
linked to the intensifi cation of the competitive environment and
the negative impact of cuts to call termination prices, partially
offset by:
■ a 4.4% increase in the total number of customers to 11.9
million as of December 31, 2009. The increase in the total
number of customers broke down as a 3.5% increase in
the number of customers on contracts and a 5.7% increase
in the number of customers on prepaid offers. Customers
on contracts accounted for 56.0% of the total number of
customers as of December 31, 2009; and
■ a slight increase to 150 minutes in average usage per user
(AUPU) as of December 31, 2009.
2008 vs. 2007
On a historical basis, personal communication services
revenues in Spain fell by 0.8% between 2007 and 2008. This
takes into account the negative impact of change s in the scope
of consolidation and other changes for 35 million euros.
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