France Telecom reports 20% fall in net profit in 2011

France Telecom has reported that its total customer base rose by eight per cent during the full year, reaching 226.3 million at the end of 2011.

However, revenues fell by 1.6 per cent to €45.28 billion (US$60 billion). Revenues were worst affected by declines in France and Poland. Excluding the impact of regulatory measures (€748 million), revenues were generally stable compared with the preceding year, despite the impact of the increase in VAT in France and unstable market conditions in Egypt and in Côte d’Ivoire.

Net profit also fell 20 per cent to €3.9 billion from €4.88 billion in 2010. The drop was largely due to the disposal of assets due to the creation of the Everything Everywhere JV in the UK formed through the merger of Orange UK and T-Mobile UK in April 2010.

Net income from continuing operations was basically flat.

CAPEX increased 3.3 per cent year-on-year to €5.77 billion, equal to 12.7 per cent of revenues, on a comparable basis, in line with the 2011-2013 trajectory.

Net debt was €32.33 billion at December 31, 2011.