Orange expects to hold profits steady for the first time in five years, even though it will cut the dividend by a quarter.
France’s biggest mobile firm, which has a 50% stake in Britain’s EE, will slash costs more deeply than before, after years when regulation and fierce competition have pushed down on prices.
Orange faces a growing threat in France as its main rival SFR, owned by media giant Vivendi, is the subject of a takeover battle. Telecoms firm Bouygues and cable group Altice have tabled bids amid a wave of European consolidation.
The cash-strapped French government, which owns 27% of Orange, will lose out because of the divi cut but investors shrugged it off as they focused on the fact profits will not fall. Shares rose 6%.
Separately, Britain’s Vodafone has appointed China’s Huawei to help it upgrade its networks in the UK and on the Continent.
