French telecoms operator Orange plans to add customers and boost profit margins through to 2020 by investing on its networks rather than buying foreign rivals or media content, it said on Thursday. The announcement confirms the strategic plan presented two years ago by chief executive Stephane Richard, hours before a crucial investor day in London aimed at convincing the financial community that he is the right person to lead the group for a third mandate from spring 2018.
Orange has chosen to focus investments on the high-speed internet broadband fibre technology and bundled offers for fixed and mobile services in its two biggest markets - France and Spain.
The company is betting that this strategy would be the best way to retain or gain market share.
That strategy contrasts with those of other rivals, including troubled Altice's SFR Group, which spent hundreds of million of euros on exclusive TV sports rights with the hope it would attract new customers.
"This investment on fibre, this conviction that the fixed-mobile convergence is what makes the difference," said Chief Financial Officer Ramon Fernandez.
"It's not this pseudo telecoms-content convergence that makes the difference." Orange also provided more detailed financial targets, with shares in the company flat in early session trading. Orange shares are down by around 1 percent so far in 2017.
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