ORANGE

Analysis of Orange share price

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The internet and mobile telephone sector has, over recent years, become one of the most profitable, notably due to the technological advances achieved in this sector and the enthusiasm of individuals for these new methods of communication. The boom in this sector has led to a great interest in the shares of the large companies in this sector among individual traders who wish to hold them in their portfolio or speculate on their share price directly on the markets. This is the case with the French Orange Company, quoted on the CAC 40 which has become popular with numerous investors.

Latest news

Orange's market cap, dividends, sales and earnings in 2020

11/10/2021 - 09h00

As usual, the Orange Group has unveiled since the beginning of this year the financial report of its business for the year 2020. Here are the essentials to know about the company's annual results

Elements that can influence the price of this asset:

Analysis N°1

First we would note the efforts made by the Orange Group for the diversification of its activities, notably its development in certain new sectors such as e-health and banking. These activities can in fact diversify the income sources of the company.

Analysis N°2

The development of the Orange Group’s presence in countries undergoing development where the demand for new technologies is experiencing a boom is also a positive indicator to monitor closely.

Analysis N°3

We could also closely monitor the growth in the implementation of the fibre optic network in France and Europe as well as the development of the 5G mobile network, both supplementary sources of income for the Orange Company.

Analysis N°4

It is also important to take into account the strong competition from certain companies that exercise their activities in the same or similar sectors that could wrest part of the market share from this company.

Analysis N°5

Of course, we would also follow closely the strategies implemented by this group relating to its growth and development.

Analysis N°6

We can then compare the objectives fixed by the group with the true results achieved according to the publication of the annual and quarterly results.

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General presentation of Orange

Knowing the Orange company is of course essential to know how to analyse its share price. Indeed, you need to understand how this company generates its revenues through its various products and services in order to know what threats it is exposed to and what opportunities it has. Here is a complete presentation of this listed company:

The Orange Group is a French company operating in the telecommunications sector. More precisely, it is currently the leading French telecom operator.

To better understand the activities of the Orange Group, it is possible to divide them into different divisions according to the share of turnover they generate and in this way:

  • First of all, the majority of the group's revenues come from the provision of telecommunications services to individuals, which generate 79% of the turnover. This includes mobile telephony services with 214.1 million customers at the end of 2020 with the Orange brands in France, the United Kingdom and the Caribbean, FTP ESpana in Spain, PTK Centertel in Poland and other brands. It also provides fixed telephony and Internet access services to 21.7 million customers. The group also offers services for telecom operators. In this segment, turnover is divided between France with 52.9%, Spain with 14.2%, Europe with 16.2% and Africa and the Middle East with 16.7%.
  • Telecommunications services for businesses represent 17.7% of turnover, including mobile telephony, voice and data transmission and integration and outsourcing of communication applications.
  • Finally, the remaining 3.3% of the Orange Group's turnover comes from services offered by the company to international telecommunication operators.
Analysis of Orange share price
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The major competitors of Orange

The Orange Group is currently one of the leaders in the telecommunications sector in France and Europe. Of course, as the competition in this sector is very strong, you should also be aware of its main rivals in the market, of which the following are some examples:

SFR

This French company is another telecommunications operator in the market that belongs to the Altice France group. Founded in 1987 by Compagnie Générale des Eaux, SFR became SFR-Numéricable in 2014 and then the SFR Group in 2016. It is currently the second largest French operator in terms of market share just after Orange with more than 15 million mobile customers, more than 6,000 million fixed-line subscribers and more than 150,000 business and government customers.

Bouygues Telecom

This other French telecommunications operator is a subsidiary of the Bouygues group which has been in existence since 1994. It is the third largest mobile telephony operator in France after Orange and SFR. The group currently has more than 18.9 million mobile subscribers and more than 4.9 million activated customers on xDSL, cable or fibre optic networks.

Free SAS

Still among the most important competitors of Orange, we will follow closely the company Free SAS which is a subsidiary of the Iliad group and which is a French mobile telephone operator as well as one of the main Internet service providers in France. In terms of the number of subscribers, Free has indeed managed to rank among the major French incumbent operators mentioned above and Orange. However, its turnover remains slightly lower.

Coriolis Telecom

Finally, Coriolis Telecom is also a direct competitor of the Orange group. It is a mobile virtual network operator created in 1999 and is present on the Orange and SFR networks. It is aimed more particularly at professionals and the general public. Coriolis has also been marketing white-label ADSL offers on the SFR network since 2012 and has been present on the FTTH public-initiative network in Calvados since 2015 as well as on certain RIPs in Essonne, in partnership with Canal +.


The major partners of Orange

Vivendi

From a strategic and marketing point of view, Orange has become associated with certain targeted companies, notably in the sector of content distribution. This is the case for example with the industrial and commercial partnership with Canal+, a subsidiary of Vivendi but it also concerns a recent partnership with Deezer that the group renewed in 2016 up to 2018.

NTT

More recently, in 2019, Orange signed a partnership agreement with the NTT telecommunications operator with the objective of combining their efforts in research and development for the digital transformation and 5G network as well as smart devices, AI, and their clients cyber security.

Gatewatcher

Still in 2019, Orange signed a partnership with Gatewatcher in the security sector for the vitally important and essential services operators. The two companies can thereby combine their experience and knowledge to provide a better level of protection against cyber attacks.

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The factors in favour of a rise in the Orange share price:

Since the arrival of the cut price operator Free on the mobile telephone sector the other major operators have suffered greatly. However Orange has managed to stay ahead due to certain strengths particular to the company.

It notably made the choice to offer its roaming services to Free Mobile thereby creating an income of several hundred million Euros per year.

Orange would thereby benefit from a high end position. Although slightly more expensive than their competitors they appear to offer better quality services. They are positioned at the top of the classification relating to mobile telecommunications service quality as well as 2G, 3G and 4G network support.

The launch of its operator Sosh has also contributed to rejuvenating the brand among the younger sector of the public. Orange has heavily invested in technological innovations as well which has enabled it to remain at the cutting edge of technological advances and promote a positive future. Due notably to its investments in fibre optics Orange has been able to position itself as leader in the fixed telephone sector and very high speed internet.

In the same way, the position of Orange in the banking sector could enable it to cover any eventual losses in other activity sectors.

The factors in favour of a drop in the Orange share price:

Due to all these strong points Orange has managed to maintain its status as leader for a number of years even against the alliance of some of its major competitors.

However, it is important to balance this success against the Orange Company’s weak points that it needs to overcome. Although it is well positioned on a local level the number one in French telecommunications has experienced difficulties in expanding on an international level. This particular point therefore appears to be an important factor for Orange to improve over the coming years.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Where to find information on the Orange Company and its share price?

To follow major events in real time that affect the Orange Group you may consult various publications and important data through the company’s official website. There you will be able to find the latest financial results of the company, information on its management and administration, RSE reports and the annual general report among other things. Of course other information such as news and events that impact the company and its share price can also be found from other sources such as specialised stock market websites.

Which stock market Indices quote the Orange share price?

The major stock market index where the Orange share price is currently quoted is of course the CAC 40, the principal French stock market Index that unites the share prices of the top 40 French companies in terms of stock market capital, but this company is also listed on the SBF120, the CAC All Tradable stock market Index and the Stoxx Telecom stock market index, which is specialised in this particular sector.

What is the last nominal value known for the Orange share price?

At present, the latest known value for the Orange share price is from the 31 December 2019. At that point, we note that the social capital of the Orange SA Group was 10,640,226,396 Euros in total. This capital was divided among 2,660,056,599 fully paid up shares with a nominal value of 4 Euros per share. We also note that during the last two financial years the share capital of this company has not increased.

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