France Télécom reports falling revenue and earnings in Q4

The company blamed unspecified regulatory measures for much of the decline

France Télécom reported a 4.5 percent drop in revenue in the fourth quarter, blaming much of the decline on regulatory measures.

The company reported revenue of ¬10.9 billion (US$14.4 billion as of Dec. 31, the last day of the period reported), down from ¬11.4 billion a year earlier.

Full-year revenue fell 3.9 percent to ¬43.5 billion, down from ¬45.3 billion a year earlier, while full-year net income fell 79 percent to ¬820 million, down from ¬3.9 billion a year earlier. The company did not publish its fourth quarter net income.

The company blamed much of the decline in revenue on unspecified regulatory measures, which it said had cost it ¬916 million over the year.

France Télécom reported 230.7 million customers at year end, up 3 percent over the year. In France, the number of mobile customers grew 0.4 percent, the same as in the rest of Europe, despite the arrival in the French market of a new competitor, Free, which significantly undercut its rivals and provoked a price war. Africa and the Middle East now account for over one-third of the company's customers: the total there rose 9.4 percent to 81.6 million.

Over the last year, the company has sold off subsidiaries in some countries, but signaled that over the next two years it will consider acquisitions to increase its market share in markets where it already operates. The company is also aiming to increase cloud computing revenue by 30 percent, and sell 12 million data-capable phones in Africa and the Middle East, boosting the number of customers able to access data services there by 70 percent.

In France, the company aims to maintain its share of the mobile market at over 35 percent. It had slipped to 37.3 percent at the end of last year as a result of the price war with Free, although France Télécom has since retaliated with new low-cost online-only tariffs while maintaining higher-priced offers for its existing customers.

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesfinancial resultsFrance Télécom

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Peter Sayer

Peter Sayer

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?