Orange reports profit growth in the first half of the year. The operator has ambitious plans.

• According to Orange Polska estimates, at the end of June 2025 the share of the four leading operators remained at 98%.
• In the first half of 2025, Orange invested over PLN 800 million in infrastructure development, and an additional PLN 700 million was allocated for frequencies in the 700 MHz band, which enable the further development of the 5G network.
• In the years 2025-2028, Orange plans to grow revenues from key telecommunications services by 4-6%, while IT & integration services by 5-7%.

The Orange Group's revenues in the first half of 2025 amounted to PLN 6.31 billion, compared to PLN 6.20 billion in the first half of 2024.

Operating profit amounted to PLN 732 million, compared to PLN 709 million a year earlier.

The net profit of the Orange Group in the first half of 2025 amounted to PLN 465 million, compared to PLN 458 million in the same period of 2024.

Telecommunications services are the driving force behind Orange's results

The main driver of growth was core telecommunications services (including convergence, mobile-only services, and fixed-line internet access services), which are the most important in terms of profit generation. Revenue from this service group increased by 7.0% year-on-year in the first half of 2025, representing a significant improvement compared to the 5.4% growth in all of 2024. This growth was driven by the continued growth of the customer base across all service types, coupled with rising average revenue per customer (ARPO).

IT and integration services revenue increased 8% year-on-year after declining in 2024, with growth primarily driven by integration services contracts and software license resale.

Revenue from equipment sales decreased by 11% year-on-year due to a decline in handset sales volume, reflecting lower market demand.

The 24% decline in other revenues was due to lower sales revenues from electricity trading (this activity was concentrated in the subsidiary Orange Energia, which was sold by Orange Polska in June 2025). The buyer was the Fortum Group , and the maximum transaction amount was approximately PLN 120 million (EUR 28 million), excluding cash and debt.

Structural decline in revenues from traditional voice telephony

The revenue dynamics also reflected the structural decline in revenues from traditional voice telephony, which decreased by 13% year-on-year.

EBITDAaL (earnings before interest, taxes, depreciation and amortization and lease costs) in the first half of 2025 amounted to PLN 1.71 billion and was higher by PLN 60 million, i.e. 3.6%, year-on-year.

The operating margin (EBITDAaL to revenue) increased to 27.1% (from 26.6% in the first half of 2024). The EBITDAaL increase was driven by a higher direct margin, which increased by 2.2% (PLN 78 million) year-on-year.

Growth was driven by continued dynamic improvement in key telecommunications services, driven by increased revenue from these services. Indirect costs increased year-on-year by 1%, or PLN 18 million.

A significant component of this increase was labor costs, which increased by 5% year-on-year, primarily due to salary increases offsetting the impact of workforce optimization. In both years, indirect costs were impacted by a higher margin generated on the network construction contract for Światłowód Inwestycje.

Net profit amounted to PLN 465 million and increased by 1.5% year-on-year.

Operating profit (EBIT) reached PLN 732 million, up 3.2% year-on-year. The higher EBITDAaL growth was partially offset by lower gains on asset sales (as part of real estate portfolio optimization) and adjustments for costs resulting from significant risks, restructuring, and reorganization.

On the other hand, EBIT profit was supported by one-off gains from the sale of Orange Energia, estimated at PLN 71 million.

Net financial costs in the first half of 2025 amounted to PLN 168 million, which was PLN 24 million higher than a year earlier. The increase was driven by higher interest costs, resulting from an increase in both the amount of debt and its average cost.

As a result, consolidated net profit amounted to PLN 465 million and increased by 1.5% year-on-year.

Four mobile operators have 98 percent of the market

Orange reports that the estimated number of SIM cards (66 million) increased by 5% compared to June 2024, which increased the mobile market penetration rate (among the population) to 176% at the end of June 2025. Despite high market saturation, mobile voice services maintained positive growth dynamics, mainly due to favorable demographic changes.

According to Orange Polska estimates, at the end of June 2025, the share of the four leading operators remained at 98%, with Orange Polska's estimated share at 29%.

Orange argues that in the consumer market, in the first half of 2025, all mobile operators continued to focus primarily on implementing convergence strategies. This means that the competitive environment for mobile-only services is relatively more stable than for fixed-line services.

In turn, intense competition remains in the business market, which is a particular challenge for Orange Polska, which has the largest share in this market.

Price increases for telecommunications services

Orange announces that in the first half of 2025 it continued its value-driven strategy, enabling it to simultaneously acquire new customers and increase average revenue per customer (ARPO).

In January 2025, we introduced another price increase for individual customers, raising the prices of all Orange brand tariff plans, except the lowest one, by another PLN 5. Furthermore, we adjusted upward the price of the lowest tariff plan of our B-Nju brand: In June, we introduced the first tariff increase in a long time for small business customers, Orange said in a report.

As added, in the first half of 2025, all leading mobile operators actively modified their tariff structures. In particular, Play and T Mobile increased the prices of their two highest tariff plans by PLN 5.

"In June, T-Mobile introduced a completely new offer, replacing four tariff plans ranging from PLN 40 to PLN 95 per month with a single plan priced at PLN 75 per month, with unlimited data. This offer represents a significant change in a market where tariffs across operators were previously very comparable," Orange reports.

The market for telecommunications and IT services will grow

The Group notes that strong competition in prepaid offers will continue in 2025, manifesting itself, among other things, in the continuous increase in data packages within so-called "unlimited" offers.

Orange informs that the market is dominated by subscription offers with large data packages to be used on a monthly basis with a specific top-up, aimed at increasing the loyalty of pre-paid customers.

"Despite intense competition, we raised prices for prepaid services at the end of 2024 and in the first quarter of 2025. We are also continuing the process of migrating customers from the prepaid segment to postpaid services," Orange writes in a report.

As added, forecasts indicate that the telecommunications and IT services market will continue to grow in the coming years. This is due to growing customer demand for increasingly better quality services.

In the years 2025-2028, Orange plans to grow revenues from key telecommunications services by 4-6%, while IT & integration services by 5-7% (CAGR).

These ambitions are supported by solid customer demand and the comprehensiveness of our offering. Access to secure digital services and entertainment has become a fundamental need for households in recent years.

Orange expects EBITDAaL growth at a CAGR in the low-mid single-digit percentage range.

At the same time, the group aims to maintain average annual economic capital expenditures (eCapex) at a level comparable to 2024, i.e., approximately PLN 1.8 billion. This will enable EBITDAaL growth to be converted into cash generation.