France Telecom has reported a 6.4% decline in revenue to 12.7bn euros ($18.8bn) compared to 13.6bn euros ($17.3bn) in the same quarter last year. EBITDA fell 36% to 4.6bn euros ($6.8bn). Skip related content
Revenue from personal communication services fell 6.7% to 6.8bn euros ($10.1bn), home communication services revenue declined 7.1% to 3.9bn euros ($5.8bn), and enterprise communication services revenue declined 3.7% to 1.9bn euros ($2.8bn).
Geographically, revenue from France declined 1.2% to 5.9bn euros ($8.7bn), while UK revenue fell 7.1% to 1.3bn euros ($1.9bn), Poland revenue fell 10.4% to 970m euros ($1.4bn), and Spain revenue declined 5% to 1.01bn euros ($1.5bn). Revenue from the rest of the world declined 3.3% to 2.1bn euros ($3.1bn).
During the quarter, the company temporarily suspended staff relocation and reassignments in response to a wave of suicides at the company since the beginning of 2008. The company's e-commerce subsidiary also agreed to sell its Alapage internet address, brand, and intellectual property rights and contracts to consumer electronics company Rue du Commerce.
For the nine-month period, the company reported a 1.6% decline in revenue to 38.14bn euros ($56.4bn).
Didier Lombard, chairman and chief executive at France Telecom, said: "Against a backdrop of difficult economic, social and regulatory conditions, the Group is proving its ability to maintain its performance. Despite mixed conditions across our footprint, our performance in France was notable. Revenues from France were up 0.6% and the take-up of new services continues to spread, particularly those related to 3G and our digital TV offers. In France, we are currently in negotiations with trade unions on a new social contract that will be proposed to employees and will form an integral part of the Group’s development in this country."
For fiscal 2009, it expects to generate 8bn euros ($11.8bn) in organic cash flow with Capex at 12% of fiscal 2009 revenues.
