Mobiles spur France Telecom growth

France Telecom reiterated its sales target of between 3 to 5 per cent comparable growth, and set a new goal for EBITDA of over…

France Telecom reiterated its sales target of between 3 to 5 per cent comparable growth, and set a new goal for EBITDA of over €18 billion, after revealing full year targets broadly in line with the company's own forecasts.

Group revenues reached €46.12 billion last year, a 3.4 per cent comparable increase that was within the company's 3-5 per cent range, but sales fell 1.1 per cent on a reported basis.

EBITDA rose 16 per cent to €17.303 billion, ahead of its target for "above 15 per cent", but slightly below the €17.4-17.5 billion range expected by analysts.

Revenues from the Orange mobile division rose 5 per cent on a reported basis to €17.941 billion, while fixed-line, distribution and networks sales were down 5.6 per cent to €21.761 billion.

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Finance Director Mr Michel Combes said net debt will be below €45 billion for the end of 2003, compared with €68 billion at the end of 2002.

For 2004, comparable total sales are seen rising 3-5 per cent, as previously stated, and the company set a 2004 EBITDA target of more than €18 billion.

"Growth in 2004 should be sustained in particular by revenues from Orange, as well as revenues from new broadband services," the company said.

In 2003, France Telecom's operating cashflow, its preferred measure of indicating progress for its cash-cutting programme, rose 66.1 per cent year-on-year to €12.2 billion.