Orange Earnings: On Its Way to Meet 2024 Guidance; EBITDAaL Up 2.5%

No-moat Orange's second-quarter results were aligned with company-compiled consensus estimates. Revenue of EUR 9.99 billion and EBITDAaL of EUR 3.1 billion (excluding Spain) respectively grew by 0.9% and 2.5% organically. This quarter continues the good trends seen in the previous quarter, and Orange is well on track to reach its 2024 guidance of low-single-digit growth in EBITDAaL. Orange is also doing acceptably on the cost front, with most cost lines having remained constant compared with the same quarter last year. Capital expenditures grew 5%, partially offsetting the contribution of EBITDAaL growth in free cash flow. Overall, the good set of results is positive for Orange’s dividend ambitions, which expects to distribute a dividend of EUR 0.75 per share this year. We are maintaining our EUR 13.40 fair value estimate.