Orange, the mobile arm of embattled former monopoly France Telecom, soundly beat expectations yesterday with a 41 per cent rise in half-year core profits, boosting its full-year earnings target.
The figures from Europe's second- largest mobile group provided a rare bright spot for France Telecom, which parted ways with chairman Mr Michel Bon overnight in preparation for tackling its €70 billion debt load.
Parental troubles weighed on Orange shares, with France Telecom dropping 15 per cent in morning trade and dragging Orange down with it.
But reassurance on France Telecom's debt outlook gave Orange investors an excuse to celebrate the results, and Orange shares closed 6 per cent higher at €5.52.
But the rest of the sector suffered, with Vodafone Group and Telecom Italia Mobile falling 2.5 per cent and mmO2 down 2.8 per cent.
Nomura telecoms analyst Mr Mark James said Orange would not be immune to the problems of France Telecom.
"Conflicts of interest between the parent company and its mobile offspring have dragged Orange's share price down throughout the year and are likely to continue doing so," he said. - (Reuters)
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