registration document France Telecom 2009 - Orange.com

analysis of the financial position and earnings
9
ANALYSIS OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
■ a 33 million euro increase in commercial expenses on the
back of the increase in the value of the euro (purchases of
mobile handsets being made in euros);
■ partially offset by i) cuts to interconnection charges and the
fall in call termination prices for 103 million euros, and ii) the
reduction in restructuring costs for a total of 35 million euros.
2008 vs. 2007
On a historical basis, the EBITDA of the Poland operating
segment increased by 5.2% to 2,146 million euros between
2007 and 2008. The increase was attributable in large part
to the positive impact of foreign exchange fl uctuations, which
represented 160 million euros year-on-year.
On a comparable basis, the EBITDA of the Poland operating
segment fell by 1.9% or 41 million euros between 2007 and
2008. This was attributable to:
■ an increase in external purchases for a total of 67 million
euros, due largely to i) an increase in commercial expenses
and content purchases, ii) an increase in service fees and
costs paid to other operators, due to increases in the number
of customers and usage, and iii) higher real estate fees;
■ an increase in restructuring costs for a total of 49 million
euros;
■ partially offset by a reduction in operating expenses included
in the calculation of EBITDA for a total of 61 million euros,
stemming from i) a 42 million euro fall in other operating
expenses (net of other operating income), due in large part
to a decrease in provisions and operating taxes, and ii) a 19
million euro reduction in labour expenses.
9.1.3.4.3 Operating income - Poland
2009 vs. 2008
On a historical basis, the operating income of the Poland
operating segment fell by 89.9% from 943 million euros in 2008
to 95 million euros in 2009. The decline stemmed in part from
the negative impact of foreign exchange fl uctuations, which
represented 180 million euros year-on-year.
On a comparable basis, the operating income of the Poland
operating segment fell by 87.5% between 2008 and 2009,
due to the fall in EBITDA and the recognition of impairment of
goodwill totaling 400 million in 2009.
2008 vs. 2007
On a historical basis, the operating income of the Poland
operating segment increased by 8.5% to 943 million euros in
2008, compared with 869 million euros in 2007. This increase
takes into account the positive impact of foreign exchange
fl uctuations, which represented 68 million euros year-on-year.
On a comparable basis, the operating income of the Poland
operating segment increased by 2.1% between 2007 and 2008,
due in large part to a 2.4% fall in depreciation and amortization,
offsetting the decline in EBITDA.
9.1.3.4.4 Capital expenditures on tangible and
intangible assets excluding licenses -
Poland
2009 vs. 2008
On a historical basis, the capital expenditures on tangible and
intangible assets excluding licenses of the Poland operating
segment fell by 32% year-on-year to 500 million euros in 2009.
The decline takes into account the impact of foreign exchange
fl uctuations totaling 139 million euros over the year.
On a comparable basis, the capital expenditures on tangible
and intangible assets excluding licenses of the Poland
operating segment fell by 16.2% or 97 million euros year-onyear.
The decline stemmed from the reduction in investments
relative to the 2G network, IT equipment and service platforms,
while investments in Liveboxes, modems and routers increased
signifi cantly due to fast growth in the number of subscribers to
“ADSL TV,” “Voice over IP” and satellite offers.
2008 vs. 2007
On a historical basis, the capital expenditures on tangible and
intangible assets excluding licenses of the Poland operating
segment fell by 23.5% to 736 million between 2007 and 2008.
The decline takes into account the impact of foreign exchange
fl uctuations totaling 77 million euros year-on-year.
On a comparable basis, the capital expenditures on tangible
and intangible assets excluding licenses of the Poland operating
segment fell by 29.1% or 302 million euros between 2007 and
2008. The decline stemmed from i) a 20.3% reduction in capital
expenditures in mobile businesses, attributable to reduced
capacity investments on the network, and ii) a 33.8% fall in
capital expenditures on the fi xed-line and Internet businesses
on the back of lower growth investments.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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