Orange Shares Lose Ground Despite a 6.6% Increase in EBITDAaL in Q1

Quarterly Results Highlighted by Exceptional Items

The day before, Orange published its first quarter accounts, showing a 3.5% increase in revenue and a 6.6% rise in EBITDAaL. The group benefited from favorable business dynamics in France, Africa, and Europe. However, as the operator itself pointed out, approximately €100 million in exceptional revenue related to fiber network co-financings inflated these figures. After adjusting for these elements, the real organic growth stands at 2.5% for revenue and 3.5% for EBITDAaL, a more measured pace. This discrepancy between reported data and underlying trajectory partly explains the lukewarm response to the stock this Friday. The CAC 40 itself is down by 1.07% during the session, in a market environment weighed down by soaring oil prices. European telecom peers are also retreating: Nokia is down by 0.54% and Bouygues by 0.88%. Conversely, US operators finished higher the previous day, with T-Mobile US up by 2.73%, Verizon by 2.70%, and AT&T by 2.42%.

Despite Today's Dip, Orange Maintains Strong Performance Over Recent Months

Despite the day's decline, Orange's stock maintains an impressive track record over the past few months: up 19.12% over three months and 41% over a year. The stock is trading well above its 200-day moving average, which stands at €14.91, indicating a firmly entrenched medium-term trend. The 50-day moving average, at €17.56, is currently acting as a close support level. Analysis of the Bollinger Bands shows that the stock is in the upper part of its fluctuation range, at 64% between the lower bound (€17.08) and the upper bound (€18.28), without reaching an overbought zone. The immediate technical resistance is positioned at €18.10, a threshold the price has not managed to break through in recent days, after reaching a high of €17.93 at the previous day's close. The next major event for the group is scheduled for July 28, with the publication of the semi-annual results.