Connect with us

Hi, what are you looking for?

Staff working at a call center/AFP


France Telecom says it lost customers to new competition

Staff working at a call center/AFP

PARIS, May 3 – France Telecom, the former state monopoly, said on Thursday that increased competition cost it more than 600,000 mobile phone clients in the first quarter, denting earnings.

France Telecom said its operating profit in the three months to March fell by 8.1 percent from the figure a year earlier to 3.4 billion euros ($4.5 billion), short of market forecasts for 3.6 billion euros.

Sales dropped 2.7 percent to 10.9 billion euros, slightly better than estimates for 10.8 billion euros, supporting the share price which rose 2.78 percent in morning trade.

The company, which operates under the Orange brand, said it lost 615,000 clients in the first quarter, when rival Free entered the market offering sharply lower tariffs which stirred a near media-frenzy.

In total, Orange France had 2.3 million client cancellations while it gained 1.7 million subscribers in the quarter. In first quarter 2011, the company lost 219,000 clients.

Finance Director Gervais Pellissier said that line access accords with Free offset some of the lost market share, with the arrangement supposed to bring in one billion euros over its six-year duration.

The increase in Free’s business as a result of its cut-price offers meant however that the pay-off would be much faster, likely one billion euros over three years, France Telecom said.

The company said it had 225 million clients globally at end-March, an increase of 10.7 million due mainly to gains in the Middle East and Africa.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...