registration document France Telecom 2009 - Orange.com

9 ANALYSIS
analysis of the financial position and earnings
OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
9.1.3.5 Rest of the World
REST OF THE WORLD
(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 8,308 8,409 8,322 (1.2)% (0.2)% 8,287
EBITDA (2) 3,237 3,491 3,446 (7.3)% (6.0)% 3,379
EBITDA/Revenues 39.0% 41.5% 41.4% 40.8%
Operating income 1,910 2,164 2,134 (11.7)% (10.5)% 2,214
Operating income/Revenues 23.0% 25.7% 25.6% 26.7%
CAPEX (2) 1,405 1,591 1,582 (11.7)% (11.2)% 1,488
CAPEX/Revenues 16.9% 18.9% 19.0% 18.0%
Average number of employees 24,304 24,346 24,364 (0.2)% (0.2)% 21,146
(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.
The “Rest of the World” reportable segment houses personal
(mobile telephony) and home (fi xed-line telephony, Internet
and carrier) communication services outside France, Poland,
Spain and the United Kingdom, i.e. mainly Belgium, Botswana,
Cameroon, Dominican Republic, Egypt, Ivory Coast, Jordan,
Kenya, Madagascar, Mali, Mauritius, Moldova, Romania,
Senegal, Slovakia and Switzerland.
9.1.3.5.1 Revenues - Rest of the World
2009 vs. 2008
On a historical basis, the revenues of the Rest of the World
reportable segment were virtually unchanged year-on-year,
contracting by 0.2% to 8,308 million euros between 2008 and
2009. This takes into account the positive impact of foreign
exchange fl uctuations totaling 105 million euros.
On a comparable basis, the revenues of the Rest of the World
reportable segment fell by 1.2% between 2008 and 2009.
Excluding regulatory impact, revenues would have increased
by 0.7% year-on-year. The increase was driven mainly by i) the
Africa and Middle East regions, where growth, in external data
(see the Financial glossary appendix), came to 5.9% and 5.7%
respectively, and, to a lesser extent, ii) Western Europe, where
growth of 3.1% was partially offset by iii) a 9.7% fall in revenues
in Eastern Europe.
By country, the main changes behind the 1.2% reduction in
revenues between 2008 and 2009 were:
■ a 19.5% fall in revenues in Romania, due to currency
depreciation, regulatory impact, lower ARPU and heightened
competitive pressure; and
■ a 5.6% reduction in revenues in Slovakia, due in large part
to the economic environment and regulatory impact in that
country.
In the opposite direction:
■ an 8% increase in revenues in Egypt, on the back of a 26%
increase in the number of mobile customers to 18 million as
of December 31, 2009 (71.25% share of customers);
■ a 10.3% increase in revenues in Mali, in line with the
approximately 712,000 increase in the number of mobile
customers to 3.5 million as of December 31, 2009; and
■ an 11.8% increase in revenues in Moldova, on the back of an
approximately 129,000 increase in the number of customers
between December 31, 2008 and December 31, 2009.
2008 vs. 2007
On a historical basis, the revenues of the Rest of the World
reportable segment remained broadly unchanged between 2007
and 2008 at 8,322 million euros in 2008, including in particular
i) the negative impact of changes in the scope of consolidation
and other changes for 426 million euros, relative mainly to the
disposal of Orange’s mobile businesses in the Netherlands on
October 1, 2007, partially offset by the acquisitions of Telkom
Kenya on December 21, 2007 and Ya.com in Spain on July
31, 2007, and ii) the negative impact of foreign exchange
fl uctuations for 30 million euros.
On a comparable basis, the revenues of the Rest of the World
reportable segment increased by 6.3% between 2007 and
2008, refl ecting mainly:
■ an increase in the total number of customers of mobile
businesses in emerging markets, particularly Egypt (where
fast growth has been fuelled by lower prices in the mobile
telephony market), Romania (where the 10 million customer
mark was reached in February 2008), and the Dominican
Republic. These favorable impacts were partially offset by the
negative impact of cuts to call termination prices on growth
in revenues and ARPU in European countries, especially
Belgium and Switzerland; and
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM