Orange Sp/Adr

So, hello, hello to all of you. Welcome to Orange Q3 26 results presentation. So, for your information, this conference is being recorded. The call today will be hosted by Christel Heydemann, our CEO, and Laurent Martinez, our CFO, with other members of Orange Executive Committee for the Q&A session that will start just after the presentation. Thank you and now let me over to the floor to Christel Heydemann. Christel, the floor is yours.

Good morning and thank you for joining our Q3 results presentation. Q3 confirms the group's strong momentum with revenue growth at 3.6%, EBITDA increasing by 4.6% and a double-digit growth of operating cash flow at 10.3%. Revenue grew across all geographies, with Africa-Middle East continuing its double-digit trend. Solid commercial performance underpinned retail services increase at 3.3%. Based on these solid results, we are upgrading our EBITDA full-year guidance with a growth now expected above 4.5%. A last word on our joint bid to acquire SFR alongside Bouygues and Iliad. Orange remains committed to constructive social dialogue which is ongoing. Expected closing date in the second half of 2027 remain unchanged subject to regulatory approvals. Driving into our financials. Revenues are up 3.6% this quarter reaching 12.2 billion euros and growing across all geographies. This strong performance was driven by retail services and an outstanding mid-teen growth in Middle East and Africa. EBITDA increased by 4.6% driven by top line growth and continued focus on efficiencies. We also maintain disciplined investment with eCAPEX II sales decreasing in the quarter and well in line with our full year guidance of around 15% driving operating cash flow up double digit at 10%. Let's now look at key Actions illustrating execution of our Trust the Future plan in Q3. First, last week we signed, together with Dutch Telecom, Telefonica and Vodafone, a letter of intent to prepare a potential joint bid for the future allocation of Spectrum for mobile satellite services in Europe. The initiative supports the European Commission's ambition to strengthen Europe's sovereignty, security and resilience in critical connectivity infrastructure. Overall, we see satellite connectivity as a core complement to our networks to provide coverage completeness and resilience. Also in terms of innovative growth, Orange Business obtained a new SECNUM cloud qualification extending its portfolio of trusted cloud offers. Orange Business was also selected to provide the European Union's backbone network for trusted data exchange. Our super app Maxit in Middle East Africa keeps gaining traction with 38.5 million active users, a 1.8 times year-on-year increase. We also conducted a 50 gigapoint test in Belgium, achieving a near zero latency. Moving to customer intimacy, in France, we keep enriching customer experience, launching new offers with a new home cinema set-top box for our high-end customers and a 5G plus FastPass, providing dedicated connectivity at major events. We also introduced the Orange Marketplace featuring over 8,000 high-tech products. Also, Poland launched its B2C cyber app to protect users from cyber threats. About excellence at scale, the integration of Mass Orange is completed and we renamed it as Orange Espana to leverage our strong brand. In France, we continue to simplify our network architecture and have successfully completed the closure of the 2G network, a new milestone in the country's nationwide transition to very high-speed network solutions. Also, we tested an AI scanner for fixed networks to detect anomalies and prevent disruption. Finally, early September, We issued a 4.1 billion bond at attractive conditions and 4 times oversubscribed. It reflects investors' strong confidence and allows us to anticipate future financing needs. In the current interest rate environment, you can note that around 90% of our existing debt is at fixed rates. I now leave the floor to Laurent for the financial overview.

Thank you Christel. Let's start with France with the third quarter confirming the strong trend seen in previous quarters. We delivered record net ads across the board in mobile, fixed and particularly in convergence with the record since 2018. Our retention programs are delivering results. Mobile churn is down by more than 1 point year-on-year, while fixed broadband churn decreased by more than 2 points year-on-year. On value, broadband ARPO increased year-on-year fueled by multi-services growth and upsell, cross-sell actions. Convergent ARPO is up sequentially, while the year-on-year trans-reflex mobile ARPO decreased. Globally, we actively push our more-for-more approach, enriching our offering and using the quality of our network and services to support pricing power while protecting churn and customer satisfaction. Turning to financial results, revenue is up by 0.5% in the third quarters. Retail, excluding PSTN, is up 1.1%, reflecting our robust commercial performance. and compensating the decline of PSTN. Customer satisfaction remains a key differentiator. Orange maintained its leadership position with an NPS of 36, 9 points ahead of our closest competitors and best-in-class churn across all segments, while continuing to offer our clients innovative offers. Equipment revenues were driven by strong demand for high-end devices, uplifting our market share. And finally, wholesale legacy activity decreased at expected pace. Overall, the resilience of retail services and our commercial momentum supported revenue growth in the quarters. We are therefore fully confident in reaching our 2026 outlook for stable plus EBITDA growth. Moving to Spain, with revenues increased by 3.5% in the first quarters, supported by solid growth in wholesale and equipment sales. Continuing the trend seen in the first half, services revenues improved sequentially by 0.5 points, led by ongoing B2B expansion across all market segments. Improving retail trends, including positive fixed and mobile net ads and gross and convergence ARPO. And finally, a strong development in new services, with 169,000 customers subscribing to financial services, home securities, energy or insurance. Action is in place to continue services trend improvement over the fourth quarters, supporting our outlook for low single-digit EBITDA growth in H2. Turning to Africa and Middle East, which continues to deliver exceptional performance. Revenues increased by more than 14% and was broadly distributed with 10 countries growing double-digit. Fixed broadband, data, orange money and B2B are all growing above 14% driven by strong increase in ARPO and customer base supported by demographic growth and expanded coverage. This 14th consecutive quarter of double-digit revenue growth reinforced our confidence in achieving double-digit EBITDA growth for the full year. Turning to Europe 6, which we pursued a very dynamic of 5.3% in the third quarters in terms of revenue uplift. This reflects an acceleration on both convergence and exceptional IT and integration services. NetAds remains very robust in both mobile and fixed broadband, and Convergent ARPO is growing by 5% in Poland. Orange Poland in particular delivered very strong results, overperforming the market with revenues up close to 8%. The acquisition of Nexera expands our Fiber footprint by 30% and strengthens growth prospects of our FiberCo joint venture. Looking ahead, we confirm our outlook for Europe 6 with a mid single-digit EBITDA growth for the full year. Looking at orange business, revenues declined by 2.5% in the third quarter, reflecting an IT market still affected by macro-environment. Against that backdrop, we are executing our transformation plan. First focusing on our go-to markets, on Trusted AI, notably with our Live Intelligence AI offer, Trusted Cloud with our flagship SecNube Cloud have a new solution, and in Key Trust verticals such as Defense and Security. Orange Cyber Defense accelerated its growth to 12% and reached 1 billion revenues over 9 months. Second, accelerating on cost efficiencies, in particular with the use of AI and resources mutualization. We are also starting to leverage our international go-to-market partnership with Techmindra. That being said, the complex market environment is waiting on a vital improvement trend. With this, back to you, Christel.