He said that Orange intends to recover in fixed broadband through further sale of very fast broadband through VDSL technology and, more selectively, fibre to the home. As result of these actions, coupled with the diminishing impact of 2013's MTR cuts,
The firm explained that the 2013 revenue decrease mainly reflected a PLN -693mn impact of regulatory decisions (mostly MTR cuts). Excluding the regulatory impact, the top-line decline was limited to PLN 525mn or 3.7%. It was caused by lower revenues from fixed services, which - excluding regulatory impact - went down by PLN 417mn, mainly due to a structural decline of PSTN. Nevertheless, the decline was limited to PLN -64mn in 4Q vs. PLN -74mn in 3Q, PLN -172mn in 2Q and PLN -107mn in 1Q. Mobile revenues, excluding regulatory impact, went down by PLN -156mn, as they continued to reflect price pressure. They were partly offset by a PLN 48mn increase in other revenues.
The operator's management has also pledged to propose to maintain a dividend of PLN 0.5 per share to be paid in 2014. However, the president stressed that the proposal will not be hiked, regardless of the actual costs of the new LTE frequencies (to be won in the tender that is planned to be re-launched). Furthermore, CFO Jacques de Galzai said that the dividend level could be sustained in 2015, provided that LTE prices are beneficial for the company and that market conditions allow for such a move.
Duthoit also declared that excluding the capex needed for spectrum, the firm expects to reduce its underlying capital expenses by at least 6% in 2014. He stresses that
The management also said that its guide for Organic Cash Flow in 2014 to be at least stable versus 2013 (excluding cash outflow for spectrum and impact of claims and litigation). In 2013, Organic Cash Flow was PLN 1,105mn vs. the target of "at least PLN 1bn."
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