Updated Tuesday, October 26, 2021 – 11:59
The orange operator has entered 3,544 million euros in the first nine months of 2021, 4.9% below that of January to September 2020.
Orange headquarters, near Paris .
Orange Spain collected more income during the pandemic than in the current year, the year of the long-awaited recovery. The orange operator has entered 3,544 million euros in the first nine months of 2021, 4.9% below the business it was able to generate in the previous year. The company attributes this setback to “an increasingly difficult business environment and growth in low-cost offers.”
Specifically, during the third quarter, from July to September, revenues stood at 1,237 million euros, 4.4% below those same three months in 2020.
Orange, however, is adding customers. “It is the fifth consecutive quarter with net additions“, stressed Jean Franois Fallacher, CEO of Orange Spain since the summer of last year. The French company already has 20.2 million customers in Spain, of which 16.2 million correspond to mobile and 4 million to Fixed broadband In the new 5G mobile technology, Orange already has 620,000 customers.
Asked by EL MUNDO about low cost solutions in the sector’s income statements, Fallacher joked: “I wish I knew.” The CEO has stated that there is no choice but to be “cautious” when developing their business proposals.
Orange is also “rethinking the store model”, as Diego Martnez, head of the company’s commercial area, recalled. Currently, the company has 800 points of sale in Spain and the digital channel is gaining strength. A quarter of the traffic in Orange Spain stores has disappeared (25% in the first nine months of 2021 compared to that period of 2019, pre-covid). On the other hand, online growth is estimated at 30% this year, and here the telecommunications company compares the data with respect to that period of 2020, when almost all commercial activity was carried out via the internet and its figures were skyrocketing.
At Vodafone Spain, which this week must conclude its negotiations for a new ERE, the company has even proposed the closure of all its own stores.
As Fallacher has recalled, the company is immersed in a remodeling that has included passing “from five brands to three, Orange, Jazztel and Simyo“Amena and República Mvil have stayed on their way, which in June completed their transition to Simyo. The latter is the operator’s trademark dedicated to low cost, while Jazztel focuses on the intermediate customer and Orange on premium.
One of the star services in the high segment is the Orange TV platform, which has 693,000 clients. In the first nine months of the previous year, this television gathered 716,000 subscribers; however, ARPU (revenue per customer) increases. However, clients with football (content that Orange bought from Telefnica, the current holder of the rights), grew in number, even 35%, according to the company’s calculations.
Regarding the sport of the ball, Fallacher has acknowledged that Orange Espaa will not attend the auction for the lots of LaLiga commercial rights, which will be distributed before the end of the year. On previous occasions, Orange has bought back those rights from Telefnica, which won the last auctions.
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