The largest telecommunications company in France, Orange SA, reported a 7.7% decline for its third quarter profit, despite excluding certain items. The cost cutting measures were not enough to offset the declining sales of the company.
The earnings before interest, taxes, depreciation and amortization or EBITDA was pegged at EUR3.37 billion or USD4.6 billion. This was reported by the company formerly known as France Telecom today. Many observers had estimated Orange's EBITDA at EUR3.34 billion, according to Bloomberg compiled data. Sales revenues fell 5.5% to EUR10.2 billion, which matched the average estimate for the company.
According to Orange CFO Gervais Pellissier, during a conference call, "We're in the midst of drafting budgets for 2014 and our intention is to try and stabilize EBITDA as fast (as) possible during that year. The question remaining is at what point during the year will we be able to do that?"
Orange declined by nearly 1.3% to EUR10.52 per share in early morning trading. At this amount, the company was valued at EUR2.78 billion.
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