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Orange May Need to Cut Dividend Further, Kepler Cheuvreux Says 2014-01-28 08:24:59.365 GMT
By Sam Chambers Jan. 28 (Bloomberg) -- Pricing pressure in French wireless will lower avg revenue per user and force Orange to raise 4G subsidies with little return in the S/T, Kepler Cheuvreux says, cutting stock to reduce. * Kepler Cheuvreux says capex unlikely to fall as management has planned due to 4G, fiber network rollouts in France, Spain * As a result mgmt. will probably be forced to cut its guidance and div. payout * Increases PT by 20% to EU9 after rolling forward model to 2014 ests, which includes higher ests due to scope for better regulation/market repair * NOTE: Orange cut its 2012 dividend to 80c/shr in Oct 2012; BDVD forecasts div. to remain at 80c/shr for next 2 yrs * NOTE: Orange scheduled to report 2013 results on March 6
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To contact the reporter on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net