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.
Jo from Northern Ireland was less than impressed by Russell Brand's attempt to stage a publicity stunt
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...