France Telecom posts revenue growth, eyes acquisitions
PARIS—France Telecom SA on Wednesday reported growth in first-quarter revenue and profit margins and said it is ready to seek acquisitions to enhance its presence in both emerging markets and Western Europe.
"All the necessary conditions are in place for the group to take part in the consolidation of the European sector," Chief Executive Didier Lombard said in a statement.
France's dominant telecommunications operator said last month it was considering possible Nordic acquisitions including Swedish company TeliaSonera and Norway's Telenor.
France Telecom Chief Financial Officer Gervais Pellissier, speaking in a conference call, said France Telecom is still interested, but has not opened talks with TeliaSonera.
France Telecom said when it looks at possible acquisitions, it is seeking synergies, stronger positions in new products and services, increased activity in emerging countries, and compatibility with business models and strategic priorities.
The company also said first-quarter revenue increased 1.4 percent to 13 billion euros ($20 billion) from 12.8 billion euros a year earlier, with growth in all business segments.
The company does not break out net profit on a quarterly basis. But it said gross operating margin grew 2.8 percent to 4.79 billion euros ($7.4 billion) from 4.65 billion euros a year earlier. Analysts say operating margin is a measure of earnings before interest, taxes, depreciation and amortization.
Through its Orange mobile arm, France Telecom is the country's sole vendor of the Apple iPhone. Pellissier said the company has sold more than 100,000 handsets, up from 70,000 at the end of last year.
