France Telecom revenue falls 3.5% in Q3

French state-run operator France Telecom on Thursday announced that its revenue in the third quarter of 2012 had dropped compared to the same period a year ago due to deteriorating economic climate. In its quarterly financial statement, the French operator said its revenue in the July-September period this year amounted to 10.75 billion euros (13.97 billion U.S. dollars), down by 3.5 percent from 2011 data, "as prices for mobile services in France and other European countries declined." Still, the results were in line with previous forecasts, and the company managed to add 317,000 net new mobile customers. "The Group delivered solid results for the third quarter enabling us to confirm our operational cash flow target for 2012," said Stephane Richard, chairman of France Telecom. "This was due to a decidedly improved commercial performance in France compared to the first half, as well as the contribution from Spain and countries in Africa and the Middle East which continue to drive the Group's growth," he said. As for 2013, the group saw "a deteriorating macro-economic outlook, strong competition in the French mobile market," Richard said. To reach a rapid upturn, France Telecom would target "more aggressive commercial pushback, improved offers, exploration of new growth areas as well as the careful management of ...cost base," he said.