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Orange Sets Out on an Ambitious 2025 Plan for Extensive Growth

July 30, 2021
3 min read
Author: Editorial Team

During a conference today, Orange is presenting details on its ambitions for three of its growth drivers: Orange Africa & the Middle East, Orange Business Services and Orange Cyberdefense. This follows on from the announcement of its first-half results where the Group presented excellent sales performances, validating its strategy. The aim of these presentations is to provide an update on the strategy, to reaffirm the Group’s confidence in its paths to delivery and to specify its 2023 ambitions.

For more than 20 years, Orange has developed Africa & the Middle East into a key area for sustainable growth. In this region, Orange provides quality networks and positions itself as a multi-service operator that supports its customers with innovative digital services in each of the 18 countries in which it is present.

The region has strong value-creating potential thanks to its three sources of growth that cover both individual and business customers: data, which will continue to grow thanks to 4G penetration among customers, fixed broadband, which will benefit from Orange’s leadership in connectivity and, lastly, mobile financial services, where our revenues will reach almost one billion euros by 2025.

Orange also invests locally to make digital services more accessible and is contributing to the continent’s development by supporting startups and creating Orange Digital Centers, such as the one opened in Mali this week.

By 2023, the Group aims to achieve an average annual growth rate (CAGR) in revenues of around 6%, double-digit EBITDAaL growth and an even faster increase in its organic cash flow.

By 2025, more than 55% of Orange Business Services’ revenue will be generated by digital, integration services and new connectivity services
Recognized as a leader in France and globally, Orange Business Services is a trusted player in the digital transformation of businesses and continues its transformation as a network-native digital-services company. IT and integration services (including cyber activities) and new connectivity services represented 41% of its revenues in 2020, while its cost optimization efforts continue. The Group’s strategy on the B2B market remains focused on three main areas of growth: digital (cloud, digital & data, IoT, cyber), integration services, and new connectivity services. By 2025, Orange Business Services will generate more than 55% of its revenues from these segments by strengthening its main differentiating factors.

Orange Business Services has demonstrated remarkable resilience compared to its peers in the face of the pandemic and has returned to sustainable revenue growth. The Group expects to achieve an average annual growth rate (CAGR) in revenue of around 2% per year in 2022 and 2023, and a return to EBITDAaL growth in 2022, which should then accelerate in 2023.

Orange Cyberdefense: the Group aims to achieve double-digital revenue growth and an operating margin about double that of today
Cyber security has become a critical factor and an essential requirement for every company so as to guarantee a safer digital society. Orange Cyberdefense has been working to secure the infrastructure and digital assets of its B2B customers since 2014. As one of the European leaders in cyber security, Orange Cyberdefense will take steps to seize new opportunities for external growth through the possible creation of a standalone subsidiary.

The Group aims to achieve double-digital revenue growth for Orange Cyberdefense, higher than that of the market, and an EBITDAaL margin in the medium term about double that of today.

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