Orange S.A. (ORA.PA) Q3 2026 Earnings Call Transcript

Constance Gest: So hello, hello to all of you. Welcome to Orange Q3 '26 results presentation. So for your information, this conference is being recorded. The call today will be hosted by Christel Heydemann, our CEO; and Laurent Martinez, our CFO, with other members of Orange Executive Committee for the Q&A session that will start just after the presentation. Thank you. And now let me over to the floor to Christel Heydemann. Christel, the floor is yours.

Christel Heydemann: Good morning, and thank you for joining our Q3 results presentation. Q3 confirms the group's strong momentum with revenue growth at 3.6%. EBITDAaL increasing by 4.6% and a double-digit growth of operating cash flow at 10.3%. Revenue grew across all geographies with Africa and Middle East continuing its double-digit trend. Solid commercial performance underpinned retail services increase at 3.3%. Based on these solid results, we are upgrading our EBITDAaL full year guidance with a growth now expected above 4.5%. A last word on our joint bid to acquire SFR alongside Bouygues and Iliad, Orange remains committed to constructive social dialogue, which is ongoing, expected closing date in the second half of 2027 remain unchanged, subject to regulatory approvals. Driving into our financials. Revenues are up 3.6% this quarter, reaching EUR 12.2 billion and growing across all geographies. This strong performance was driven by retail services and an outstanding mid-teen growth in Middle East and Africa. EBITDAaL increased by 4.6%, driven by top line growth and continued focus on efficiencies. We also maintained disciplined investment with eCapEx to sales decreasing in the quarter and were in line with our full year guidance of around 15%, driving operating cash flow up double-digit at 10%. Let's now look at key actions illustrating execution of our Trust the Future plan in Q3. First, last week, we signed together with Deutsche Telekom, Telefonica and Vodafone, letter of intent to prepare a potential joint bid for the future allocation of spectrum for mobile satellite services in Europe. The initiative supports the European Commission's ambition to strengthen Europe's sovereignty, security and resilience in critical connectivity infrastructure. Overall, we see satellite connectivity as a core complement to our networks to provide coverage, completeness and resilience. Also in terms of innovative growth. Orange Business obtained a new SecNumCloud qualification, extending its portfolio of trusted cloud offers. Orange Business was also selected to provide the European Union's backbone network for trusted data exchange. Our super app, Max-It in Middle East Africa keeps gaining traction with 38.5 million active users, a 1.8x year-on-year increase. We also conducted a 50G-PON test in Belgium, achieving a near 0 latency. Moving to customer intimacy. In France, we keep enriching customer experience, launching new offers with a new home cinema set-top box for our high-end customers and a 5G+ Fast Pass, providing dedicated connectivity at major events. We also introduced the Orange Marketplace featuring over 8,000 high-tech products. Also, Poland launched its B2C cyber app to protect users from cyber threats. About excellence at scale, the integration of MASORANGE is completed, and we renamed it as Orange Espana to leverage our strong brand. In France, we continue to simplify our network architecture and have successfully completed the closure of the 2G network, a new milestone in the country's nationwide transition to very high-speed network solutions. Also, we tested an AI scanner for fixed network to detect anomalies and prevent disruption. Finally, early September, we issued a EUR 4.1 billion bond at attractive conditions and 4x oversubscribed, EUR 4.1 billion bond, 4x oversubscribed. It reflects investors' strong confidence and allows us to anticipate future financing needs. In the current interest rate environment, you can note that around 90% of our existing debt is at fixed rates. I now leave the floor to Laurent for the financial overview.

Laurent Martinez: Thank you, Christel. Let's start with France with the third quarter confirming the strong trends seen in previous quarters. we delivered record net adds across the board in mobile, fixed and particularly in convergence with the record since 2018. Our retention programs are delivering results. Mobile churn is down by more than 1 point year-on-year, while fixed broadband churn decreased by more than 2 points year-on-year. On value, broadband ARPU increased year-on-year, fueled by multi-services growth and upsell, cross-sell actions. Convergent ARPU is up sequentially, while the year-on-year trends reflects mobile ARPU decrease. Globally, we actively push our more-for-more approach enriching our offering and using the quality of our network and services to support pricing power while protecting churn and customer satisfaction. Turning to financial results. Revenue is up by 0.5% in the third quarter. Retail excluding PSTN is up 1.1%, reflecting our robust commercial performance and compensating the decline of PSTN. Customer satisfaction remain key differentiators. Orange maintained its leadership position with an NPS of 36, 9 points ahead of our closest competitors and best-in-class churn across all segments while continuing to offer our clients innovative offers. Equipment revenues were driven by strong demand for high-end device, uplifting our market share. And finally, wholesale legacy activity decreased at expected pace. Overall, the resilience of retail services and our commercial momentum supported revenue growth in the quarters. We are, therefore, fully confident in reaching our 2026 outlook for stable plus EBITDAaL growth. Moving to Spain, with revenues increased by 3.5% in the third quarter, supported by solid growth in wholesale and equipment sales. Continuing the trend seen in the first half, services revenues improved sequentially by 0.5 points, led by ongoing B2B expansion across all market segments, improving retail trends including positive fixed and mobile net adds and growth in convergence ARPU. And finally, a strong development in new services with 169,000 customers subscribing to financial services, home securities, energy or insurance. Action is in place to continue services trend improvement over the fourth quarters, supporting our outlook for low single-digit EBITDAaL growth in H2. Turning to Africa and Middle East, which continues to deliver exceptional performance. Revenues increased by more than 14% and was broadly distributed with 10 countries growing double digit. Fixed broadband, data, Orange Money and B2B are all growing above 14%, driven by strong increase in ARPU and customer base supported by demographic growth and expanded coverage. This 14th consecutive quarter of double-digit revenue growth, reinforced our confidence in achieving double-digit EBITDAaL growth for the full year. Turning to Europe 6, which we pursued a very dynamic of 5.3% in the third quarter in terms of revenue uplift. This reflects an acceleration on both convergence and exceptional IT and integration services. Net adds remains very robust in both mobile and fixed broadband and convergence ARPU is growing by 5% in Poland. Orange Poland, in particular, delivered very strong results, overperforming the market with revenues up close to 8%. The acquisition of Nexera expands our fiber footprint by 30% and strengthen growth prospects of our FiberCo joint venture. Looking ahead, we confirm our outlook for Europe 6 with a mid-single-digit EBITDAaL growth for the full year. Looking at Orange Business, revenues declined by 2.5% in the third quarter, reflecting an IT market, still affected by macro environment. Against that backdrop, we are executing our transformation plan. First, focusing on our go-to-market on trusted AI, notably with our live intelligence AI offer, trusted cloud with our flagship SecNumCloud Avenue solution and in key trust verticals such as defense and security. Orange Cyberdefense accelerated, it grows to 12% and reached EUR 1 billion revenues over 9 months. Second, accelerating on cost efficiencies, in particular with the use of AI and resources mutualization. We are also starting to leverage our international go-to-market partnership with Tech Mahindra. That being said, the complex market environment is weighing on EBITDAaL improvement trend. With this, back to you, Christel.

Christel Heydemann: Thank you, Laurent. Our strong Q3 and 9 months performance gives us confidence in achieving our full year objectives. It also enables us to raise our EBITDAaL growth guidance once again. to above 4.5%, supported by solid performance across Africa, Middle East and Europe. Thank you for your attention. We are now happy to take your questions.

Constance Gest: [Operator Instructions] So the first one is Akhil Dattani from JPMorgan.

Akhil Dattani: Can you hear me?

Constance Gest: Akhil, can you try again? So next is Joshua Mills from BNP Paribas.

Joshua Mills: A couple from my side. Just on French consolidation, can you give us an update on the near-term time line here? I think in the last conference call, you were talking about a signing in the second half of this year. And I believe the longest update is for December 6. So how significant is that date? And should we get more updates before then with the works council discussions, as to any actual formal process by which they could block the deal or is this just normal negotiations? And then the second question is just around agentic AI, which is obviously being discussed a lot more as a risk for the sector by investors. I'd like to know how you're thinking about that at Orange. Are you taking any steps to block the apps? How are you thinking about evolving your brand strategy in a world where customers are probably going to use AI more and more to compare price points?

Christel Heydemann: Thank you, Joshua. So on the French consolidation timing, you're right, the time line is unchanged. We plan signing of the transaction by the end of this year, 2026 and the closing by the end of 2027, we have 2 process in parallel, both were initiated when we signed the MoU. The first one is getting the approvals of employee representatives. We have done so at Orange. Bouygues has done so for Bouygues employees. Iliad has done so with Iliad employees. And Altice has initiated the dialogue with Altice employees. In this context, there are some legal actions that Altice employees have initiated, which will continue to proceed, but we continue to have an open dialogue with the Altice employees and as I said it, we are strong believers of social dialogue. So at this stage, there is no reason to believe that these actions and especially the legal action, would postpone the signature of the transaction by the end of this year. In parallel to that, second very important item is the antitrust process, which we started when we signed the MoU. And this process is moving forward in parallel. And this is, of course, the process that will take most time and that will lead to the closing end of next year. On agentic AI. So of course, agentic AI is something we are actively engaged on. We have many initiatives in the company. This is true in customer experience, but this is also true in all our IT and software development internally. This is true for cybersecurity and Orange Cyberdefense is highly exposed to the booming evolution of threats, cyber threats in the environment. When it comes to agentic AI and especially agentic -- personal agentic AI apps, this is something that we follow carefully. But when it comes to the fear of automatic, I would say, price decrease by customers. First of all, this is something that we don't think comes as a news because we already have very transparent pricing ecosystem in Europe. And as you can see, we have a low end of the market that is active with actually very visible and transparent price points that are very different from our premium price points. And despite that, we continue to drive differentiation and to reduce churn on our customer base. So this is something that, of course, we follow carefully, more importantly, to make sure that all our tools and apps are well integrated into this new world of agent AI and especially gen AI as well, but we are not worried about massive downgrade in the price point environment, which, by the way, is something we got used to facing with the very competitive markets we work in.

Constance Gest: Thank you. So Akhil, can you try again?

Akhil Dattani: Can you hear me now?

Constance Gest: Yes.

Akhil Dattani: Great. Thank you. I've got 2 as well, please. Maybe first, if we could start on the French competitive environment. You've mentioned a very strong KPI performance that we've seen during the quarter. I'd love to understand a bit better exactly what we're seeing I'm mindful that SFR suffered pretty high churn in June. Could you sort of talk us through the dynamics at the moment you're seeing in the market? And I guess specifically, what I'd love to understand is that we haven't seen these improving KPI trends benefiting your retail ex PSTN trends this quarter. I just wondered if there's anything to call out or whether there might be a bit of a lag there. So anything around that would be super helpful. And then the second question was on the comment, Christel, you made around the MSS spectrum. Obviously, there's been a huge amount of debate in industry around the threat from satellite. I'd love to better understand what you're thinking around the role that you play in that environment. Obviously, you don't have satellites as a company or as a JV. So can you help us understand how you'd leverage that spectrum and how you think about the routes to defending yourselves from satellite threat?

Christel Heydemann: Thanks, Akhil. On the French competitive environment and Jerome will complement. But we see -- and I guess your question is related to the dynamic around SFR. So First, when we look at our commercial performance, SFR is not the only operator from which we are benefiting from. So we can track, of course, portability. And we've seen Q3 market environment, very similar to Q2 with an overall stable competition on the high end, fixed broadband and mobile, and the low end, that's in the continuity of Q2, slightly more rational than what we saw 12, 18 months ago. And this has been the case already for a few quarters. The back-to-school period was as planned with no change, I would say, from any B brand in the market. And on mobile, we have seen some improvement since the beginning of the year, especially on B brands with entry price points that are now more around EUR 10 for 20 gig versus EUR 8 in Q3 '25, so last year. So overall, a stable environment. When it comes to our commercial performance, I don't know if Jerome, you want to comment, but we continue to be driven by, of course, the convergent growth and especially, you see the pressure on the mobile ARPU. On convergent. Of course, we continue to grow customers and the new customers that are entering the cohort have typically 1 mobile only when we have a customer base in convergent where the average is more 1.8, that's weighting on the average revenue per user, but this is nothing to worry about, and this is exactly as per plan. I don't know if Jerome, you want to comment more on the competitive dynamics.

Jerome Henique: Thank you, Christel. Thank you, Akhil, for your question. I think you underline the strong commercial performance, which is reflected again this quarter with the record net adds on convergence since 2018, plus 57,000. And as you said, on mobile, very strong as well. 146,000 and this is not only the result of gaining market share towards SFR, but towards its net positive -- net adds towards all competitors in France. Pushing for value, of course, despite the pressure on the mobile ARPU and particularly by managing on cross-sell, upsell including some tactical back book price increase to protect our value.

Christel Heydemann: On the satellite and MSS spectrum. So as we commented, we signed a letter of intent with Dutch Telekom, Telefonica, Vodafone, to potentially bid for 1 part of the MSS spectrum that's being auctioned end of '27 for implementation in '29. And of course, the bid for the spectrum would then be open and wholesale to all telecom operators in Europe. And we see MSS spectrum really as a complement to our terrestrial network. And as we've always said, for us, the key element will be the customer experience and the handover from terrestrial to satellite and back and forth between our networks which really requires mastering both side of the experience, working also on the handsets. And so this is really the way we see it. So when it comes to the bid and the consortium to bid for spectrum, it's still early stage. So we can't provide you more details. But again, the process is second half of 2027. So we will provide more detail as soon as we have.

Constance Gest: Okay. So now we are moving to Ondrej Cabejsek from UBS.

Ondrej Cabejšek: I hope you can hear me?

Constance Gest: Yes.

Ondrej Cabejšek: I've got 2 questions as well. One is the follow-up on the French competitive dynamics. I guess can you rule out that there is any kind of increased competitive pressures to, for example, already gained some of the higher-value SFR customers that are already seeing higher churn at this point. you've raised prices, SFR has raised prices, Bouygues has raised prices. So I guess, are you confident in this environment despite the potential consumer pressure from what's going on in France that's still going into 2027, we can continue to see positive trends on both the retail ex PSTN and EBITDAaL growth in France. That's question number one, please. And question number two, I think there's been a bit of a -- in Spain specifically, there's been a bit of a reversal in the trends following the stabilization that you flagged happened in June. I believe you have also raised prices in the market and the bigger players, Telefonica, yourself and Vodafone are all seeing better trends. So can we expect a return to stability or -- any time soon? Or is this kind of 1-ish percent decline on the service revenue is something that we should get used to for the time being?

Christel Heydemann: Thank you, Ondrej. On the French market dynamic and the SFR customer base, first and foremost, it's not as if we have seen flow of SFR customers leaving SFR and willing to join. So there is absolutely no massive trend in the market. So we see portability yes, but we also see portability going to SFR. So there is no -- so massive leakage. And of course, we see a trend that we had anticipated as part of our bid for SFR, but not more than that. As you said, we have implemented some price increases very targeted. So no massive and somewhere, of course, in back book some on front book very targeted, as we had said. So this is nothing new. As you commented, some of our competitors also did. And it's a mix of more for more and same for more. Of course, in our case, we are also targeting copper customers to make sure that we align the price of copper up so that there's an incentive to move to fiber. And when it comes to the dynamic on the premium part of the market, I would rather comment on all the actions and especially the additional services we provide to make sure we create an incentive for customers to be willing to take our premium package. So the home cinema set-top box, for instance, that's attached to our premium package for broadband and for which we have seen a very good start and similar across the board. So that's really our play, and we continue to execute on it. And we have no fear that this would change. But of course, we operate in a market that's competitive. So we continue to follow what the competition is doing. When it comes to Spain, so in Spain, as you can see and as we had said, we see a Q3 trend that's improving compared to Q2. We have we have some dynamic where, of course, our focus is on churn reduction because we have we have a market where given we have the largest customer base, of course, churn is the top priority to avoid, I would say, feeding the market. But -- so our action plan is absolutely to continue to improve. We see -- we plan to continue to improve the convergent B2C ARPU trend. And as we've always said, we expect also growth to come from SOHOs and B2B given our already very large B2C customer base. I think, Meinrad, you're connected. So if you want to add something, please jump in.

Meinrad Spenger: Thank you so much. Thank you, Christel. Yes. Overall, if you look at our results, we have been growing 3.5% in total revenues. And if you look at the service revenues, we see a positive trend. We come down from minus 1.9% in Q2 to minus 1.4% in Q3. And that is a component by a positive mobile and FBB, net add strength. And also important, we grow also in ARPU. And in our analysis, we see that we are probably the only major operator in the market that grows ARPU also in acquisition and we have been able to increase our value share in the acquisition as well. So this is a very good base together with the growth in B2B and in new services that we can say that we are optimistic that we will have a continuation of the improvement trend also in Q4 this year.

Ondrej Cabejšek: Christel, can you just confirm, please, or to follow up, but can you please confirm that the outlook, therefore, based on everything that you were seeing in France is still positive growth for both retail ex PSTN and EBITDAaL in France for 2027.

Christel Heydemann: Yes. For -- I mean, our '26-'28 guidance is unchanged to the Capital Market Day. And when it comes to the lending for this year, it's still, as we said, stable plus EBITDAaL trend. So that's also what we see for -- and that's the trend for the full period. So we anticipate the same for '27.

Laurent Martinez: And just to be precise on that, we are expecting as well H2 stable as well stable plus definitively, we don't want to go negative on the H2 on the EBITDAaL of France, obviously.

Constance Gest: So now we are moving to Nicholas Lyall from Berenberg.

Nicholas Lyall: I hope you can hear me. It was just to come back to French ARPU, please, if you could. I mean, your ARPU did seem a little bit weaker this quarter versus some of the improving trends last quarter. So with that, I think Christel, you just mentioned, for example, differences in the addition of Convergent something maybe with 1 handset, not 1.8. So that might be a factor. But what's the sort of way on the ARPU here of low French consumer confidence. I mean we're seeing worse and worse numbers coming through. So what do you expect to see over the next couple of quarters in terms of sort of ARPU development? And how do you approach that, please? And then secondly, on just general sort of government points. Anything you could update us on the outlook for taxes or French government, maybe interference in dividends or others? Is there anything being discussed on that level, please?

Christel Heydemann: Yes. Thank you, Nicholas. On the ARPU, as I said, on the convergent ARPU, first of all, it's stable plus quarter-on-quarter. But indeed, it's slightly down year-on-year for convergence. But as I said, it's mostly driven by the mix of offers of the new customers compared to the current cohort of convergent base. So that's what's driving our -- if our cross-sell strategy is efficient. And as I was mentioning, we continue to upsell on our base, driven by innovation and innovative offers. And the example of the home cinema set-top box is a good example on broadband. And we've seen a very solid start already a few -- I mean, that's 2 weeks from 2 weeks only. So it's still -- of course, it's not in the Q3 numbers. So we will continue to work on, of course, driving I mean convergence and reducing churn is really our focus. And then upselling and driving value, but continue to play as well on the low end part of the market. That's very important. And from that standpoint, we have -- we play with all our brands and in the context of SFR, as you know, we will also acquire some MVNOs that will also complement our ability to play on the full spectrum of market segments. On the French tax environment, so for what is being discussed at the French Parliament, there is nothing unknown and no surprise. There is, as you know, last -- I mean, for last year already or 2 years ago, we had the surtax on income -- profit tax and which had an impact of EUR 50 million last year. there are some discussion on actually reducing slightly this surtax. But as long as the budget is not approved in the parliament, it's very difficult to comment but we don't see anything else specific. I think -- I mean nothing specific to the telecom sector. And as you know, in the current pressure on purchasing power given the very attractive and low prices in France for telecom compared to other countries in Europe. Our sector is absolutely not targeted in the -- and we already pay a lot of taxes. So I think we contribute to the full equation.

Constance Gest: [Operator Instructions] So let's move to Mathieu Robilliard from Barclays.

Mathieu Robilliard: I had 2 questions. The first was about Spain. So as Meinrad and Christel, you flagged that the service revenue trends have improved a bit compared to the previous quarter. But what I wanted to understand was what was driving that. The reason I'm asking that is because when we look at some of your competitors, we see some healthy service revenue growth but it seems to come with very low margin that is losing maybe some high-margin telecom revenues replacing it and offsetting it with low-margin, other types of services. So I wanted to understand how is the revenue mix evolving in Spain and if your target to stabilize service revenues is going to be at the detriment of the margin? And then the second question was a broader question about the French political situation. We're all aware of what is happening. And I was wondering if you're seeing any impact on the B2B or the corporate segment from the higher uncertainty and maybe that is impacting OBS or not?

Christel Heydemann: Thank you, Mathieu. On Spain, as you're right to point that we are the only operator to grow the convergent ARPU, and this is a decision to really focus not just on commercial net adds, but more on also value. And so we have taken some -- I mean, this is value driven. So to somehow some less aggressive, I would say, price position in the market to try to have some impact, given we have the largest customer base on the overall market dynamic. So this is something that we are absolutely focused on making sure we focus on value and not just on gross adds and driving prices down. We have many brands in Spain. So we can play with our different brands. The Orange brand is, of course, our premium brand and we have regional brands. We have low-cost brand, digital low-cost brand. And so that's really what Meinrad and the team are working on to make sure we play on the diversity of our brand positioning to maximize the value. And that has also some impact and we hope that the full market will do so. On the French political situation. So of course, uncertainty is never good for business and investment when -- I mean, as a business, we like stability and to be able to plan. So this is probably not a good environment. Now most of our customers and what we provide to customers, I was mentioning cybersecurity or resilient connectivity is something that our customers are -- I mean, cannot compromise. So from that standpoint, of course, even though some decisions could be postponed on some big transformation when it comes to cybersecurity connectivity or secure cloud solution, this is not something that customers compromise. But of course, the overall environment and especially on the small businesses, customers tend to be conservative and maybe not aggressively embracing new solution. But I don't know if [ Hugues ] or Aliette, you want to comment. But I don't think -- I mean, this is something you would expect in this type of environment. And as you can see now, in our numbers because the situation is not specific to France. Of course, we have also a difficult environment elsewhere in Europe. And this is -- I mean, some of the discussion we've had in Europe for now many years on the price of energy is, of course, waiting on the P&L of companies. This is true also for consumers and purchasing power. But of course, that's not helping us in France with our Orange Business turnaround, given, of course, that puts a lot of pressure on prices for customers.

Constance Gest: Thank you, Matthew. So now it's Stephane Beyazian from ODDO.

Stéphane Beyazian: Is it -- it's obviously too early to talk about 2027 in terms of guidance. But I mean, clearly, 2026 is a good year and sets a higher bar higher base for 2027. I was just wondering whether you can already comment on some of the factors, the growth drivers that you have today and thinking, for instance, on the savings and to what extent you can maintain that drive into 2027 or which factors you expect perhaps to disappear that have helped 2026. And I've got a second question, is it possible to have an idea if Sosh is still growing as part of your total customer base in France, and I was also curious how many customers do they have taken the cybersecure product.

Christel Heydemann: Thank you, Stephane. On 2027 guidance, as you said, it's too early to provide some details. But first, as we reminded, we are consistent with our CMD trajectory of an EBITDAaL CAGR of plus 3%. Of course, 2026 is off a very good year with a remarkable performance of MEA. some one-off cofinancing in France and the very strong performance of Europe. So we take that into account. But when it comes to '27 and '28. We want more of the same, which is focusing on the solid commercial performance and continue to drive our efficiencies to make sure we can deliver on this EBITDAaL growth.

Laurent Martinez: And I just want to add, Stephane, that efficiency remains, of course, a top focus for us, and you will see an acceleration on the efficiency in the second half of '26 versus the H1. And definitively, we'll continue to drive upward the efficiency, AI and all our transformation in terms of operation will continue to bear fruit in 2027, of course.

Christel Heydemann: On the Sosh performance, Jerome?

Jerome Henique: Yes. Thank you, Christel. Sosh is growing as well as the Orange brand. We are playing on both A and B brands, of course. On the past quarters, volumes were mostly driven by the Orange brand. which is part of our convergence strategy, but Sosh is contributing positively as well. And we are focusing on churn improvement on both brands as well. And as you saw, we as well partnered with Carrefour to launch a C brand this quarter to be able to cover the whole spectrum of offers and customer needs. As far as cybersecure customers are concerned. We have more than 400,000 customers so far, and we are increasing our range of product, preparing additional services to enrich cybersecure proposition on both B2C and B2B Professional services.

Constance Gest: Okay. So now we are moving to Roshan Ranjit from Deutsche Bank.

Roshan Ranjit: I've got 2, please. hopefully very quick. Just touching back on the satellite topic. And whilst I appreciate not a fully fledged perhaps D2D offering. Can you give us some data on your Skylo product. I think it's now been just under a year of that product. Any adoption rates, any initial feedback you have on that, please? And secondly, Orange Money, I think it's another quarter of 15% revenue growth. Any details you could give on percentage of the Africa, Middle East, you know that is and any changes in customer behavior, people using it more, more spend? Or is it just a volume growth that is supporting that revenue growth?

Christel Heydemann: Thank you, Roshan. On satellite, you're right to mention we launched this first offer a year ago, actually, with Skylo in France. But as you know, we are testing several solution. We are also testing StarLink in Spain, and we have a pilot under preparation with -- in Romania with AST. When it comes to the Skylo offer, it's very little -- I mean we've been able to test the willingness for customers and the appetite in the market for this type of offer. That being said, the Skylo experience, given its geostationary solution and it was only available on a few devices was very -- I mean, it was as expected. It was for a test in the market to test the appetite, to position ourselves in this segment. But of course, we plan to continue to add especially more device options given it was limited to only customers buying these new Pixel devices, which was a very small part of the market. So from that standpoint, we achieved what we wanted to test the appetite, but we were not planning for massive adoption. But we know there's willingness for customers to embed this type of solution. On your second question regarding Media and Orange Money, it's a right opportunity to ask Yasser to comment on the exceptional performance.

Yasser Shaker: So thank you, Christel. So maybe just quick on Orange Money. And specifically, I think we had -- yes, as you said, we had a very good results. And I'm not only happy with the results of the top line, honestly, because the underlying performance is the one that counts. So despite that we have some pressures on the top line and on the fees that we're charging, in fact, still we were able to do this revenue growth because of mainly 3 things. One is related to the customer experience and integrating our services on our digital platform, which is now more and more maxed. The second is that we're pushing a lot on merchant payments. So if you can see on our merchant payments, we have more than 50% increase only in the last 6 months. The same goes on microcredit, where we also increased our micro credits with over 50% over the last 6 months. So these are maybe the 3 main activities that are ensuring that we continue to grow on Orange Money and will continue to grow, I think, in the next quarters to come.

Constance Gest: Thank you. So now Russell Waller from New Street.

Russell Waller: Yes, I just have a couple, if that's okay, please. So obviously, as I'm sure you're all aware, rates are rising, the French 10-year obviously much higher. How does that make you think about the NPV of synergies and also the sector has derated as well, obviously, since the time that the deal was announced. Is there any risk that the price could be renegotiated with SFR? Is there any mechanism for you to do that, for example? Second question, obviously, there's a French election next year. Do you have any idea what the other parties think about the deal? Obviously, if there's a change of government, they'll be your largest shareholder, therefore, what they think is important. Can you give us any kind of prewarning or of anything that might change there? And then the third question, just a quick one. I think your mobile network faced an outage because of the kind of global problems. Should we expect to see any impact to the Q4 numbers in France?

Christel Heydemann: Thank you, Russell. On the SFR transaction, you're right to mention that the debt and the interest rates evolution are obvious part of our market environment. But as you know, we have a solid balance sheet and most of our debt is -- I mean, is on the fixed rate -- we issued a new bond oversubscribed earlier in -- earlier this year. When it comes to price renegotiation in the transaction, we have some mechanism to adjust the price depending on the performance of SFR over time in the transaction. But of course, we won't disclose the detailed mechanism we had -- as we said, we had foreseen for the evolution of the business of SFR. And for the time being, the trend is as foreseen. So we don't see any change from that standpoint. But we continue to work first on signing the transaction. And of course, very important, the antitrust process was triggered by the MoU that we signed in June. Any renegotiation or something would have an impact on the antitrust process and would have an impact on the calendar of closing as well. So this is in an environment where I think back to your question on what the political parties and the various stakeholders think of the transaction. I think there's a broad consensus that SFR is in a situation where the rise of interest rates is probably weighting on their financials. And that means there are probably even more eager to conclude the transaction that -- than they were before. And as you know, SFR is managing critical infrastructure for France and for millions of customers. And this is something that I think all political parties are aware of. And we have not seen any negative comment to the proposed transaction from any political party in France. So from that standpoint, even though the antitrust process is managed by an independent body, the antitrust agencies independent from the political parties. We have not seen any bad reaction from any political party. On the mobile network outage that we had last week, this is not related to the overall security environment that we saw in France. This is unfortunately something that happened. So it was a network outage driven by one equipment in our core network. And so it's unfortunately a failure -- so it did not impact all our customers, but it impact several millions of our mobile customers. And it took a few hours before we've been able to identify what was the issue with the vendor involved and then to restore the traffic. Of course, we've taken proactive action with our customers to compensate them, especially at doubling their data package for the next month. So we don't foresee any impact on our financials in October from that mobile outage.

Laurent Martinez: And I may add a few word result on the balance sheet and that you alluded to, just to remind a number of facts. So our fixed rate component on our financial debt is 92%. So we are extremely well protected in terms of interest rate increase with as well a maturity of 7.2 years, so as well very long in terms of global maturities. And I just want to add as well that have been issuing close to EUR 14 billion in the last 12 months. And our liquidity position in June was EUR 11 billion of available cash, not counting the EUR 4 billion (Sic) [ EUR 4.1 billion ] of incremental bonds we have issued end of August, early September. So a very solid and very visible situation on our balance sheet.

Constance Gest: So now we are moving to Fernando Cordero Barreira from Santander.

Fernando Cordero: Two questions. The first one is related is a follow-up on Africa, Middle East. Basically, we have seen in the third quarter a slowdown on the volume growth, particularly in mobile. And I just would like to understand at which stand -- this is an impact of any nonrecurring factor or if there is a change on the strategy on trying to move from volume to value in order to maintain the double-digit growth profile of the region? And the second question is, as a general topic on your devices strategy. We have seen an acceleration both in Spain, the activity remains quite strong, and there is an acceleration in France. Where can we see the ceiling or the, let's say, the level of penetration of device activity within your customer base? Just to understand when that growth or how sustainable the growth in devices is not only just on the revenues, but also thinking on the churn impact.

Christel Heydemann: Thank you, Fernando. On Africa, Middle East, we have -- it's not that we've seen a slowdown in mobile revenues, but indeed, we have a flat mobile customer base in Q3, but this is mostly technical, and this reflects some implementation of KYC regulations in several countries, which we had then -- which had some impact on our customer base, but absolutely no impact on the business growth and the revenues. On devices and equipment performance, we have a very solid environment. And in most countries, actually, we overperformed the market dynamic. This is driven, of course, largely by devices sales, but also by some of our marketplace activity in Spain, but now also the new marketplace in France. But this is mostly driven by also the high-end devices in terms of growth. When -- on volume, actually, we see an environment with prices that are moving up because of memory and components, which, of course, is driving revenues up as well. So it's price driven on top of the solid volume performance, especially on the high-end part of the market and the marketplace performance. We have and set financing or device financing, you're right in part of our equipment sales, which, of course, is a nice loyalty feature or churn reduction but we have not seen any change on our practices from 1 quarter to another, and we are used to managing that with our customer base.

Fernando Cordero: Just as a follow-up, if I may. Can you share us at least qualitatively, which is the level of device penetration within your customer base, particularly in converting in your main markets in order to understand the still potential impact in China and consequently at the end on net adds going forward?

Christel Heydemann: Our device penetration is low given it's not offered -- I mean, first of all, most of our customers, when we -- when they have a mobile package with us, it's not attached to a device sale. And depending on our brands, by the way, this is not even eligible. So we don't have the data of how much of our customer base is attached to a device financing or a device package but it's a low number compared to our full customer base. And the difference in terms of churn, when we have a device financing, especially in the European countries, it's 4-point difference when there's a device attached to a mobile package compared to when there is not.

Constance Gest: So we are at the end of this Q&A session with financial analysts. I just remind to the generalists who are connected to the Q&A session for journalists will start slightly after 10:00 -- at 10:00 sharp. And now I hand back over to Christel Heydemann for concluding remarks.

Christel Heydemann: Thank you. So thank you for joining. Our strong Q3 performance gives us full confidence in our 2026 guidance, including our upgraded EBITDAaL growth target above 4.5%. Commercial momentum is strong across our footprint and our efficiency plans remain firmly on track. Our financial position is solid. Our balance sheet and liquidity are strong. We remain focused on delivering our Trust the Future strategy and capturing the significant opportunities ahead, including the SFR acquisition that is progressing as planned. Thank you all, and have a very pleasant day.