Posted Feb 16 2023 at 02:27 PMUpdated Feb 16. 2023 at 06:07 PM
It was baptized “Lead the future”, but it is rather “back to basics”. Ten months following taking control of Orange, Christel Heydemann presented Thursday morning her strategic plan for the operator by 2025. And it is a return to fundamentals that is confirmed. The idea is to generate maximum value through the networks, with price increases on the one hand, savings on the other – and a simplification shock across the entire organization of the group. On the stock market, the plan was well received, with Orange shares rising 6% at midday and crossing the 10 euro mark.
The pressure was maximum. Quarter following quarter, Orange faces sluggish growth in France, its largest market. Its profitability will begin to decline due to the decline in wholesale revenues from copper, which is set to disappear in favor of fiber by 2030. On mobile, 5G – especially in industries – is starting too slowly. And the revolution in telecom uses in companies since Covid-19 has created a shock for Orange Business Services, which is facing a sharp decline in its traditional activities.
