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Orange S.A. (ORAN)

NYSE - NYSE Delayed Price. Currency in USD
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11.09-0.04 (-0.36%)
At close: 4:00PM EDT

11.09 0.00 (0.00%)
After hours: 4:16PM EDT

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Neutralpattern detected
Previous Close11.13
Bid0.00 x 2200
Ask0.00 x 4000
Day's Range10.96 - 11.10
52 Week Range9.93 - 16.58
Avg. Volume449,352
Market Cap29.386B
Beta (5Y Monthly)0.26
PE Ratio (TTM)12.66
Earnings DateN/A
Forward Dividend & Yield0.45 (4.06%)
Ex-Dividend DateJun 05, 2020
1y Target EstN/A
  • Huawei Besieged on New European Front After U.S. Targets Cloud

    Huawei Besieged on New European Front After U.S. Targets Cloud

    (Bloomberg) -- Huawei Technologies Co., already getting squeezed out of Europe’s vast market for the next generation of telecom equipment, is under siege in another fast-growing business: cloud computing.U.S. officials have been lobbying European lawmakers and industry leaders to use Western companies -- while shunning Huawei -- to build data centers and offer infrastructure to handle the growing tide of information.As part of a European tour last week, U.S. Under Secretary Keith Krach met executives including Deutsche Telekom AG CEO Timotheus Hoettges and Meinrad Spenger, the head of Spanish telecom carrier MasMovil, to urge them to ditch Chinese vendors of cloud infrastructure on data-security concerns.“Look at this as an extension of that 5G,” Krach said. “Clouds are really important, whether it’s in the service cloud or in data centers themselves. This is a big deal.”Pressure from Washington affects one of Huawei’s fastest-growing businesses. China’s largest technology corporation by sales has in past years accumulated an impressive roster of clients, including Deutsche Telekom, France’s Orange SA and Spain’s Telefonica SA. It’s now seeking to expand its reach to customers such as oil companies, power grid operators and logistics providers.While Alibaba Group Holding Ltd. operates a larger cloud business and WeChat-operator Tencent Holdings Ltd. isn’t far behind, Huawei is more vulnerable given the Trump administration has managed to convince some governments in the region to exclude its 5G networking gear. Europe’s cloud infrastructure is a $12.4 billion business that grew 33% this year from 2019, according to market researcher IDC. U.S. players dominate, led by Amazon.com Inc.’s AWS and followed by Microsoft Corp., IBM, Google and Oracle Corp.“Chinese players like Alibaba and Tencent are not making huge inroads into the European market,” according to IDC’s Carla Arend.A spokesman for Huawei declined to comment on its European cloud business.Similar to European telecom firms slowing turning away from Huawei for their 5G infrastructure, U.S. pressure is already working in the cloud. Orange CEO Stephane Richard told analysts in July that the company’s cloud built on a Huawei infrastructure was “likely no longer relevant.”“Clearly today, the Huawei Cloud infrastructure is not necessarily the one we’re going to be promoting in Europe,” he said. Orange’s Huawei-built cloud is currently used by the European Space Agency and car-marker PSA. Just days before Richard’s call with analysts, Orange signed a cloud deal with Google.Deutsche Telekom declined to comment on its CEO’s meeting with Krach and its cloud-business plans. The company, whose biggest sales come from its T-Mobile unit in the U.S., has cloud partnerships with Cisco, Microsoft, OVH and Amazon’s AWS. It also has an offer based on Huawei infrastructure called “Open Telekom Cloud” for small and medium-sized companies.While Huawei is struggling, U.S. companies are thriving. Nokia Oyj on Wednesday signed a five-year deal to move its IT infrastructure onto Alphabet Inc.’s Google Cloud. The U.S. provider also recently won a multiyear deal to store Renault SA’s manufacturing data, marking the U.S. tech company’s first major industrial cloud deal in France.“Huawei is losing market share in Europe,” said Jim Lewis, Director of Technology Policy Program at the Center for Strategic and International Studies in Washington, D.C. “I think its brand has been damaged. Their handset sales continue to do well, but in infrastructure they are being squeezed out of the developed world.”U.S. sanctions have already jeopardized Huawei’s supply chain. A U.S. ban in chip sales to Huawei kicked in Sept. 15, disrupting its wireless, handset and cloud offerings. In 5G, the U.K. has imposed a full ban, while France has devised rules making it riskier for operators to use Huawei equipment, without banning it outright.Read More: Trump Is Still Trying to Pressure Merkel Into Banning HuaweiTelefonica, which retracted plans to use mainly Huawei for its 5G, sells a cloud offer with the Shenzen company in Spain, Brazil, Argentina and Chile. It also has partnerships with Google, SAP and Microsoft. Krach cited Telefonica as one of the 50 telecom operators committed to the U.S.’s “clean network” plan.Huawei is far from defeated in Europe. On a rainy day last week, it opened an 8,000-square foot (743 square meters) research center in an upscale Paris neighborhood. Local telecom champion Orange said it will selectively keep parts of Huawei’s infrastructure in its offerings.But for now, the U.S. is maintaining pressure on its European counterparts.“All these companies that have cloud businesses and data centers that use Huawei, they understand that in terms of 5G, sophisticated smartphones and their servers, they are going to be out of chips,” Krach said after his eight-country European tour.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Swedish Raider Might Nab Europe’s Last Telecoms Jewel

    Swedish Raider Might Nab Europe’s Last Telecoms Jewel

    (Bloomberg Opinion) -- Could Swedish private equity firm EQT AB succeed where billionaire Carlos Slim failed and push through an acquisition of Dutch carrier Royal KPN NV? The telecoms industry’s depressed valuations certainly make it look feasible.EQT is exploring a bid for KPN, Bloomberg News reported on Friday. The shares jumped as much as 9.8% on Monday, valuing the group at 10 billion euros ($12 billion). Earlier interest from Canadian infrastructure fund Brookfield Asset Management Inc. and a handful of Dutch pension funds failed to produce a concrete bid last year, and America Movil SAB, which is controlled by Slim, had an offer rebuffed back in 2013. The Mexican telecoms operator still has a 16% stake in KPN.Telecoms stocks have been the worst-performing sector in Europe over the past decade apart from banks, prompting executives to seek other ways to generate returns for shareholders. Operators across the region — such as Vodafone Group Plc. in the U.K., Telefonica SA in Spain, Altice Europe NV in France and Portugal and plenty more besides — have started selling stakes in their network assets, which can command enterprise valuations approaching 20 times Ebitda, a profit measure.That’s often more than twice or three times the valuation multiple of the parent company. Infrastructure funds in particular are hungry for the predictable returns that networks can enjoy when decoupled from their consumer-facing businesses.The pattern has prompted a flurry of deal-making activity, not just from funds investing in the infrastructure assets, but from activists pushing telecoms operators to consider such divestments. The likes of Deutsche Telekom AG, Orange SA and Proximus SADP have been able to resist the trend largely because the German, French and Belgian states respectively retain significant holdings in each firm.Macquarie’s $10 billion acquisition of Denmark’s TDC A/S in 2018 may be instructive for EQT. The Australian fund is separating TDC’s consumer business from the networks. It can then lease network capacity both to the new standalone consumer company, which it may sell, and other third-party operators. It’s a playbook you can well imagine EQT following.KPN is one of the few operators that has neither a significant state investor nor has it monetized its networks in this way. That makes it an appealing acquisition target, which is one reason why it was trading at more than 18 times its expected earnings before Friday’s report, higher than the 13 times average of its European peers. Even so, the shares are trading near their lowest levels as a multiple of earnings since 2013.Although the virus might have created some near-term headwinds, the company’s prospects are fundamentally unchanged in the long term, creating an opportunity for a bidder such as EQT. Last year, UBS analyst Polo Tang estimated that a leveraged buyout of KPN at 3.50 euros per share could generate annual returns of 10%. The stock’s average price over the past 50 days was just 2.16 euros, creating an opportunity for even more upside, even if it doesn’t separate its consumer and network operations.What’s more, EQT may be able to avoid a nationalistic or protectionist backlash given it is based in the European Union and says it’s committed to a long-term, sustainable approach to ownership. A bid of between 2.70 euros and 2.75 euros, which Bloomberg Intelligence analyst Erhan Gurses sees as realistic, would value KPN at 18 billion euros including debt. It would certainly be ambitious, but now might just be the time to pull it off.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Gaming, E-Commerce Deals Herald New Age for Polish Tech

    Gaming, E-Commerce Deals Herald New Age for Polish Tech

    (Bloomberg) -- A flurry of big-ticket gaming, e-commerce and telecoms announcements has focused the attention of tech investors on an unlikely destination: Poland.Arguably better known for defending its smokestack industries from European Union climate goals, Poland has quietly developed a number of growing tech companies.This month’s initial public offering by online marketplace Allegro is the biggest ever in Warsaw and worth as much as $2.7 billion. CD Projekt SA, Europe’s second-biggest biggest gaming company, plans to release its make-or-break futuristic Cyberpunk 2077 game in November, already dubbed as the most awaited launch this year. Mobile games producer Huuuge Inc. and People Can Fly SA, a studio that helped make Fortnite, also plan to list shares in Warsaw later this year.While European governments have repeatedly tried and failed to create the continent’s own version of Silicon Valley, Poland’s digital remake is fed by local IT talent, an upwardly-mobile population and still low operational costs. The government has offered tax breaks for tech investments and switched to cloud technologies in partnership with Google Inc. and Microsoft Inc.The change in consumer habits online has benefited companies beyond those purely focused on e-commerce. Advent International is considering the sale of Polish postal locker provider InPost SA, valuing the company -- that been boosted by an increase online shopping -- at about $2.3 billion, according to people familiar with the matter.France’s Iliad SA is buying for $2.6 billion Polish mobile phone operator Play Communications SA, which has successfully disrupted rivals including local units of Orange SA and Deutsche Telekom AG.Aman Ghei, principal at Finch Capital technology fund in London, said Poland’s IT industry has reached critical mass and its talent pool as “one of the best in Europe.” Still, it may be difficult to expect a large stream of public deals.“For IPOs in local markets, you need serious scale -- and Allegro is a massive business well known to investors,” Ghei said by email. “It becomes a bit more challenging for enterprise software companies that are not well-known to the institutional and retail investor base as they need to provide free float for it to be a successful deal.”Part of the allure of Allegro, which makes money through fees for sellers who list products on its website, is that online still accounts for about 8% of retail sales in the country, about half as much as in the U.K. and a third of the share in China.Another boon for the company, whose gross merchandise volume jumped 54% to 16 billion zloty ($4.1 billion) in the first half of 2020, is that Amazon.com Inc still sells to Polish consumers through its German subsidiary, limiting its appeal.Allegro and CD Projekt together are set to become the two biggest Warsaw-listed companies -- highlighting the shift away from old-economy industrials and banks that have dominated the WIG20 index.There is uncertainty about sustainability of the current boom. The accession to the European Union in 2004 allowed for access to broad markets, but also triggered a brain drain. Europe’s most-valued start-up, Swedish payment provider Klarna AB, was started by immigrant Pole Sebastian Siemiatkowski, and U.S. software house Snowflake Inc., co-founded by Marcin Zukowski.For years, tech-savvy graduates have been a sought-after resource for companies relocating IT and data departments to Poland, where programmers’ salaries are still about half of paychecks in neighboring Germany. Some of them started to flourish with their own start-up ideas.In 2006, two years after Poland joined the European Union, the founder of Huuuge, the mobile game maker with $260 million of sales last year, relocated his IT business from Finland to the western Polish city of Szczecin, just as Nokia started its decline as a European tech champion.“Some peers considered that as a bold and risky move, which it certainly was,” Anton Gauffin said in email. “Those were the years where we learned how to build truly exceptional mobile games. Poland should be proud of its gaming talent.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.