France Telecom SA
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France Telecom SA Financial Snapshot
Operating Performance
Fast Facts
78 rue Olivier de Serres, Paris cedex 15, The company reported revenue of US$63,799 million
Headquarters Address
PARIS, 75505,France during the fiscal year 2011 (2011). The company's
revenue declined at a compounded rate of 0.36%
Telephone + 33144442222
during 2007–2011, with an annual growth of 3.85%
over 2010. In 2011, the company recorded an
Fax + 33232949120 operating margin of 17.30%, as against 16.41% in
2010.
Website www.francetelecom.com
Ticker Symbol, Stock Exchange FTE, Euronext Paris Revenue and Margins
Number of Employees 165,533
Fiscal Year End December
Revenue (in US$ million) 63,799
SWOT Analysis
Strengths Weaknesses
Return on Equity
Global presence Pending litigation
The company recorded a return on equity (ROE) of
14.13% for 2011, as compared to its peers,
Strong customer base Telefonica, S.A. (Ticker: TEF), Vodafone Group PLC
(Ticker: VOD) and Deutsche Telekom AG (Ticker:
Strong research and development
DTE), which recorded ROEs of 24.97%, 9.10% and
capabilities
1.58% respectively. The company reported an
operating margin of 17.30% in 2011.
Opportunities Threats
Growing presence in Congo Industry consolidation Return on Equity
Strategic partnerships Intense competition
Rapid changes in technology
Liquidity Position
The company reported a current ratio of 0.76 in 2011,
as compared to its peers, Telefonica, S.A., Vodafone
Group PLC and Deutsche Telekom AG, which
recorded current ratios of 0.64, 0.63 and 0.65
respectively. As of December 2011, the company
recorded cash and short-term investments of worth
US$12,489 million, against US$7,556 million current
debt. The company reported a debt to equity ratio of
1.43 in 2011 as compared to its peers, Telefonica,
S.A., Vodafone Group PLC and Deutsche Telekom
AG, which recorded debt to equity ratios of 3.06, 0.44
and 1.33 respectively.
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France Telecom SA - SWOT Profile Page 1
France Telecom SA
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ........................................................................................................................................... 5
1.2 Business Description......................................................................................................................................... 5
1.3 Major Products and Services............................................................................................................................. 6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ......................................... 7
2.2 Key Financial Performance Indicators ............................................................................................................. 10
2.2.1 Revenue and Operating Profit ................................................................................................................. 10
2.2.2 Asset and Liabilities................................................................................................................................. 11
2.2.3 Net Debt vs. Gearing Ratio ...................................................................................................................... 12
2.2.4 Solvency ................................................................................................................................................. 13
2.2.5 Valuation ................................................................................................................................................. 14
2.3 Competitive Benchmarking.............................................................................................................................. 15
2.3.1 Market Capitalization ............................................................................................................................... 15
2.3.2 Efficiency................................................................................................................................................. 16
2.3.3 Valuation ................................................................................................................................................. 17
2.3.4 Turnover – Inventory and Asset ............................................................................................................... 18
2.3.5 Liquidity................................................................................................................................................... 19
3 Recent Developments ........................................................................................................................... 20
4 SWOT Analysis ...................................................................................................................................... 22
4.1 SWOT Analysis - Overview ............................................................................................................................. 22
4.2 Strengths ........................................................................................................................................................ 22
4.3 Weaknesses ................................................................................................................................................... 22
4.4 Opportunities .................................................................................................................................................. 22
4.5 Threats ........................................................................................................................................................... 23
5 History .................................................................................................................................................... 24
6 Key Employees ...................................................................................................................................... 26
7 Key Employee Biographies ................................................................................................................... 28
8 Locations and Subsidiaries .................................................................................................................. 29
8.1 Head Office..................................................................................................................................................... 29
8.2 Other Locations and Subsidiaries .................................................................................................................... 29
9 Appendix ................................................................................................................................................ 31
9.1 Methodology ................................................................................................................................................... 31
9.2 Ratio Definitions .............................................................................................................................................. 31
9.3 Disclaimer ....................................................................................................................................................... 35
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France Telecom SA - SWOT Profile Page 2
France Telecom SA
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List of Tables
Table 1: Major Products and Services ............................................................................................................................. 6
Table 2: Key Ratios - Annual ........................................................................................................................................... 7
Table 3: Key Ratios - Interim ........................................................................................................................................... 9
Table 4: Key Capital Market Indicators ............................................................................................................................ 9
Table 5: History ............................................................................................................................................................. 24
Table 6: Key Employees ................................................................................................................................................ 26
Table 7: Ke