Orange’s disappointing performance in Spain in the first quarter could complicate the proposed merger of its Spanish subsidiary with MásMóvil.
El Pais reports that negotiations are scheduled close in the first half of this year and there are still many details to be decided about the deal.
These include who will head it in the first year, currently assumed to the Meinrad Spenger, MásMóvil’s current CEO.
Orange Spain’s revenues in Q1 were, at €1,132 million, 4.6% lower than in the same period last year. It ended the first quarter with 695,000 TV customers, or 1% fewer than in Q1 2021, and ARPU fell by 0.3% in the quarter.
In her comments on Orange Group’s results, CEO Christel Heydemann said: “Spain remains our most challenging market, and we’re pressing ahead with our stand-alone programmes aimed at restoring growth. I’m also pleased to note our exclusive discussions on combining our operations with those of MásMóvil. This operation would lead to the creation of a sustainable player with the investment capacity, infrastructure and competitive edge necessary for its future development and for the benefit of both consumers and businesses in Spain”.
As previously reported by Broadband TV News, last month Orange and MásMóvil entered into exclusive negotiations to combine their operations in Spain.
The resulting entity would be a 50/50 joint venture valued at €19.6 billion, with Orange Spain and Masmovil (LORCA JVCO) worth €8.1 billion and €11.6 billion respectively.
