registration document France Telecom 2009 - Orange.com

9 ANALYSIS
analysis of the financial position and earnings
OF FRANCE TELECOM S.A.’S FINANCIAL POSITION AND EARNINGS (FRENCH GAAP)
9.2.2.1 Operating Income
(in millions of euros)
Year ended December 31
2009 2008
Change
2009-2008
Revenues 22,500 22,820 (1.4%)
Other operating income 2,524 2,837 (11.0%)
Consumpt ion of goods and merchandises (2,785) (3,000) (7.2%)
Other external purchases and expenses (7,150) (7,233) (1.2%)
Taxes other than income tax (983) (865) 13.6%
Labour expenses (6,326) (6,569) (3.7%)
Other operating expenses (697) (671) 3.9%
Depreciation, amortization and provisions (2,445) (2,326) 5.1%
Operating income 4,638 4,993 (7.1%)
Revenues
The table below shows France Telecom S.A.’s revenues by market in 2009 and 2008, as well as the percentage change between the
two years.
(in millions of euros)
Year ended December 31
2009 2008 (1) 2009-2008
Change
Fixed-line services 19,691 19,967 (1.4%)
Subscriber fi xed telephone lines 7,166 7,938 (9.7%)
Internet services 3,256 2,811 15.8%
Carrier services 3,807 3,838 (0.8%)
Data transfer 3,389 3,288 3.1%
Other fi xed-line services 2,073 2, 092 (0.9%)
Other revenues 2,809 2,853 (1.5%)
Sales of mobile equipment 271 284 (4.6%)
Various other revenues 2,538 2,569 (1.2%)
TOTAL REVENUES 22,500 22,820 (1.4%)
(1) The breakdown of 2008 revenues has been modifi ed to take into account the reclassifi cation on the “other fi xed-line services” line (in the second half of 2009) of various services
invoiced to subsidiaries, previously recorded under “various other revenues”. The breakdown in revenues between Internet services and data services recorded in 2008 has also
been adjusted.
France Telecom S.A.’s revenues totaled 22.5 billion euros in
2009, down 1.4% compared with 2008. The downward trend
in subscriber fi xed telephone lines and the impact of reductions
to various wholesale prices applied by the regulator (carrier
services) were partially offset by strong growth in Internet
services and fi rmer revenues in data services.
Fixed-Line Services
Subscriber Fixed Telephone Lines
Revenues from subscriber fi xed telephone lines were down
9.7%, breaking down as:
■ a 13.4% decrease in revenues from traditional calling services,
as a result of the development of “Voice over IP” services; and
■ a 7.5% decrease in revenues from telephone services
subscriptions stemming from the steady growth in ADSL
broadband access (via the full unbundling of telephone lines
and naked ADSL) and the development of the wholesale
market in telephone service subscriptions.
Internet Services
The 15.8% increase in Internet service revenues was attributable
to the sustained growth in sales of ADSL broadband services
and associated services such as “Voice over IP” and “digital
television” (via ADSL and by satellite) to retail customers.
Services to Operators
Operator services revenues were down 0.8%. The impact
of price cuts imposed by the regulator, particularly on ADSL
access and wholesale telephone lines, was partially offset by
growth in the number of unbundled telephone lines and, to
a lesser extent, an increase in wholesale telephone service
subscriptions.
Data Transfer
The 3.1% increase in data transfer revenues stemmed for the
most part from growth in broadband and very high bandwidth
access services.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM