Investment: Orange numbers again confound the critics
Tuesday 11 August 1998
Not that it was the profit figures which so surprised and pleased the market. True, Orange reported its first-ever operating profit and is on course to make a profit at the pre-tax level next year. But what really impressed investors were its statistics for the amount of revenue being racked up by each of its subscribers.
On average, Orange customers are now spending pounds 485 a year on their mobile phone calls, compared to pounds 489 last year: this despite Orange cutting its call rates by giving customers more free minutes, and signing up lots of users to its pre-paid service, where average revenues tend to be much lower.
Meanwhile, cheaper handset prices are also bringing down the cost to Orange of signing up new customers.
Whether average revenues will continue to hold up after Orange pushes through another round of price cuts later this year remains to be seen. But if the company can continue its aggressive push for new customers - helped by the introduction of number portability early next year - while encouraging existing users to spend more time with their phones pressed to their ears, the City will be happy.
Of course, Orange's competitors are not going to stand by and let it take market share, so the price war may intensify. However, new roaming agreements with other European operators should boost revenues, while a brace of new services will help keep Orange in the race.
On current figures Orange's market value of almost pounds 10bn - the shares added 45p to 795p yesterday - is hard to justify. But as long as continues to keep its promises, the shares remain a firm hold.
- 1 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 2 People all over the world are getting semicolon tattoos to draw attention to mental health
- 3 Van driver who comforted Clark Carlisle and called 999 after suicide attempt dies age 24
- 4 James Blunt was special guest on the highest-rating Top Gear episode ever
- 5 The biggest first date turnoff has been revealed
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...