registration document France Telecom 2009 - Orange.com

9 ANALYSIS
analysis of the financial position and earnings
OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
9.1.3.6 Enterprise
ENTERPRISE
(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 7,559 7,834 7,785 (3.5)% (2.9)% 7,723
EBITDA (2) 1,501 1,578 1,508 (4.9)% (0.4)% 1,263
EBITDA/Revenues 19.9% 20.1% 19.4% 16.4%
Operating income 1,124 1,184 1,115 (5.1)% 0.8% 749
Operating income/Revenues 14.9% 15.1% 14.3% 9.7%
CAPEX (2) 299 356 356 (16.2)% (16.2)% 407
CAPEX/Revenues 4.0% 4.5% 4.6% 5.3%
Average number of employees 20,528 20,374 20,403 0.8% 0.6% 19,288
(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 “Enterprise” operating segment houses communication
services solutions for businesses in France and throughout the
world.
9.1.3.6.1 Revenues - Enterprise
On a historical basis, the revenues of the Enterprise operating
segment fell by 2.9% to 7,559 million euros between 2008 and
2009. The change refl ected the slowdown in business since the
second quarter, in a more challenging economic environment,
partially offset by the positive impact of foreign exchange
fl uctuations, which represented 48 million euros year-on-year.
On a comparable basis, the revenues of the Enterprise
operating segment fell by 3.5% or 275 million euros between
2008 and 2009.
Fixed-line telephony and traditional data services
2009 vs. 2008
On a comparable basis, the 8.4% decline in fi xed-line
telephony and traditional data services revenues compared with
2008 was attributable to a more marked contraction in fi xed-line
telephony in the second half.
The 8.2% fall in traditional fixed-line telephony revenues
between 2008 and 2009 stemmed from i) a 10.4% reduction
in the volume of telephone communications to businesses
(downward trend in the fi xed-line telephony market measured
on the basis of interconnections and seasonally adjusted),
ii) a reduction in “voice” access revenues due to a 5.8% drop
year-on-year in the number of telephone lines, translating
customer rationalization in a tighter environment and an
intensifi cation of migration to “Voice over IP” offers as well as
heightened competition on the back of the regulatory cut to
wholesale subscription prices, and iii) a marked contraction in
customer relation services revenues (call centers) linked to the
implementation of France’s Economic Modernisation Act and
the substitution of these services by the Internet.
At the same time, traditional data services revenues fell by
9.1% between 2008 and 2009. The migration of corporate
networks to more modern technologies continued in 2009, at
the same pace as in 2008, after substantial transfers in earlier
years.
2008 vs. 2007
On a comparable basis, the fall in fi xed-line telephony and
traditional data services revenues continued, but at a more
restrained pace, with a fall of 4.9% between 2007 and 2008.
The migration of traditional data services (managed
infrastructure and networks) to more modern technologies
entered its fi nal phase, at a less intense pace among the
remaining customer base. The decline in traditional data
services came to 9.2% between 2007 and 2008.
At the same time, the impact of voice migration to IP
supports was limited. The 3.2% decline in traditional fixedline
telephony revenues was attributable to i) a 6.9% fall in
the volume of telephone communications to businesses, ii)
a continued decline in traffi c for customer relation services
(Audiotel), and iii) regulatory impact on prices. The stabilization
of “voice” access revenues also contributed to the slowing of
the decline in the traditional “voice” business.
Enhanced network services
2009 vs. 2008
On a comparable basis, Enhanced network services
revenues increased by 4.1% between 2008 and 2009, buoyed
by annual growth of 3.5% in IP network services. The pace of
growth tended to slow due to the more muted growth in IP-VPN
access volumes, partially offset by higher speed accesses, the
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM