France Telecom 2007 annual results: a very good Group performance

France Telecom today announces its audited financial results for 2007. Consolidated revenues rose to €52.959 billion at 31 December 2007, growth of 2.8% on a comparable basis. Growth was particularly strong in the fourth quarter of 2007 (+3.6% on a comparable basis).

Home Communication Services

Revenues for Home Communication Services (HCS) totalled €22.671 billion, a 0.8% increase on an historical basis, due to the favourable effect of exchanges rates (+€58 million) and to changes in the scope of consolidation with the acquisition of Ya.com in Spain, the full integration of the subsidiary JTC in Jordan and the disposal of the subsidiaries Orange Netherlands and FTMSC (satellite services) in France. On a comparable basis, revenues were down 0.2% year-on-year.

Revenues from ADSL broadband services, including revenues from wholesale ADSL access and the unbundling of telephone lines, continued their strong growth, representing 20% of total Home Communication Services revenues for 2007, compared to 15% in 2006, on a comparable basis. ADSL broadband services revenues offset considerably an underlying drop in traditional telephone services in France, Poland and Spain.

The number of consumer ADSL broadband accesses in Europe rose to 11.652 million at 31 December 2007, representing 25% annual growth on a comparable basis (2.3 million new ADSL accesses). The number of Liveboxes rose 53% in one year, with 6.100 million units sold in Europe at 31 December 2007, up from 3.983 million at 31 December 2006 on a comparable basis.

The number of customers for Voice over IP services practically doubled in one year, rising to 4.779 million at 31 December 2007 from 2.427 million at 31 December 2006 on a comparable basis.

ADSL digital TV services (IPTV) subscribers in Europe grew to 1.243 million subscribers at 31 December 2007, principally located in France, compared to 590,000 one year earlier.

HCS France revenues totalled €17.957 billion, up 1.4% on a comparable basis and 1.7% on an historical basis. The number of consumer ADSL broadband accesses rose to 7.296 million at 31 December 2007, up 23% year-on-year. ADSL Multiservices were up significantly at 31 December 2007, with:

• 5.209 million Livebox rentals, a 52% year-on-year increase, with Liveboxes representing 71% of ADSL accesses at 31 December 2007, up from 58% a year earlier;
• 4.102 million Voice over IP subscribers, twice the number of a year ago, with Voice over IP services representing 56% of ADSL accesses and more than 80% of Livebox rentals;
• 1.149 million ADSL television subscribers (IPTV), twice the number of a year ago, accompanied by the success of video on demand services (VOD), with 2.5 million paying downloads recorded in 2007.