EE revenue falls 3.6% to GBP 1.55 billion in Q1

News General United Kingdom 28 APR 2014
EE revenue falls 3.6% to GBP 1.55 billion in Q1

UK operator EE reported a turnover down 3.6 percent to GBP 1.55 billion in the first quarter, compared with the first quarter of 2013, hurt by mobile call termination and roaming price cuts. Mobile ARPU grew 2.2 percent, with the percentage of ARPU from data (non-text) revenue growing by 11 percentage points to 47 percent. EE’s first quarter operating revenue decreased by 1.7 percent to GBP 1.49 billion. If not for the regulatory impact, mobile ARPU would have grown by 5.1 percent and operating profit by 0.8 percent.

The EE network had 30.7 million users at the end of March, including 3.66 million MVNO customers, up 3.2 percent on last year. The operator added 214,000 net postpaid mobile customers, including M2M, while its prepaid base reduced by 321,000. The customer value mix improved further in the quarter, with a net increase of 123,000 postpaid consumers/B2B customers. Some 59 percent of customers are now on postpaid, excluding M2M, generating an average of six times higher ARPU than prepaid. In fixed telephony, ADSL broadband and fibre, EE increased revenue by 12.5 percent and added 20,000 customers.

The operator boosted its 4G customer base by 889,000 in the quarter to a total of 2.9 million. It said it was on target to exceed 6 million 4G customers by the end of the year. Half of new and renewing postpaid customers chose 4G, with a strong update of double speed 4GEE Extra plans. EE, which now has nearly 5,100 medium and large companies using 4G, has rolled out 4G in 200 cities and double-speed 4G in 20 cities.

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