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Orange Polska SAOrange PL expects low to mid single digit EBIDTAaL growth in 2025-2028 strategy
Listed telco Orange Polska expects low to mid range single digit EBIDTAaL growth in its 2025-2028 strategy, assumes dividend of PLN 0.53 (EUR 0.13) per share as a base level, the company wrote in the strategy. Orange Polska counts on at least PLN 1.2 billion (EUR 286.6 mln) organic cash flow in 2028.
"We are focused more than ever on cash generation and have included it in our guidance – an ambitious new commitment to deliver at least PLN 1.2 billion organic cash flow in 2028. Sustainable cash generation is the basis of shareholder value creation," said Orange Polska's CFO Jacek Kunicki, quoted in the strategy.
"We will achieve this through sustainable EBITDAaL growth supported by efficient capital expenditure, focused on areas generating high returns," he added.
As Kunicki stated, commercial growth will be the key to unlocking Orange's value. This means leveraging the company's main growth engines of core telecom services and IT&IS that constitute the majority of its revenues and profits.
"In parallel, we will intensify our transformation and efficiency initiatives to reduce our indirect cost ratio and expand our margins. AI will be a key enabler, supporting transformation across all elements of the business model," Kunicki said.
"As a result, EBITDAaL will grow at a low-to-mid single-digit CAGR rate over the plan period, faster than revenues," he underlined.
The CFO said that Orange Polska's investment plans will require expenditure comparable in size to that in 2024.
"They will prioritise the assets that support our commercial growth – specifically, our 5G and fibre networks. By improving our capex allocation, we will increase its productivity which will be visible in a decrease in our eCapex-to-revenue ratio," Kunicki said.
"All these efforts, achieving higher EBITDAaL, improving capex allocation and increasing our cash flows, will result in the further growth of Orange Polska’s Return on Capital Employed (ROCE)," he added.
The company considers PLN 0.53 per share cash dividend as a floor for the 2025 to 2028 period. Further increases to dividends will be considered on a yearly basis taking into account projections of underlying financial results and overall soundness of the balance sheet.
"Finally, our financial ambitions are accompanied by our commitment to offer sustainable, progressive shareholder remuneration, with the PLN 0.53 dividend per share proposal for the fiscal year of 2024 set as a floor over the period of the plan," the CFO concluded.
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