Orange Romania 1Q Revenues Down 6%, To EUR222M

05.03.2011 By Gavrila Oana

Revenues of telecom operator Orange Romania fell 6% in the first quarter, to EUR222 million from EUR237 million in the same period of 2010, due to difficult economic conditions, worsened by increasing inflation.

The company had 10.274 million clients at the end of March, 5% less than at the end of the first quarter of the previous year, according to France Telecom's first-quarter results report released Tuesday. At the end of last year, Orange Romania had 10.464 million clients.

The operator's PrePay client base continued to decline, while the number of subscribers increased compared to the first quarter of 2010, Orange Romania noted in a press release Tuesday. The average annual revenue per user stood at EUR82.7.

Inflation, which rose higher than expected in February, has hindered consumption across various sectors, including telecommunications, the release also said.

Orange Romania CEO Thierry Millet said in the press release the past two years of economic crisis have altered consumer habits and said he expects revenues in the telecom industry to continue declining over the next quarters.

Orange Romania's first-quarter revenues from services declined 7%, to EUR199 million from EUR214 million in the first quarter last year.

On the mobile internet services segment, the company's number of clients increased nearly 20% compared to end-March last year, to 3.1 million, flat compared to the end of 2010.