Everything Everywhere adds 72,000 subs in Q2, sales fall 5%

News Wireless United Kingdom 28 SEP 2010
Everything Everywhere adds 72,000 subs in Q2, sales fall 5%
Everything Everywhere reported a 3.4 percent annual increase in its customer base in Q2, for a total 27.93 million subscribers. The postpaid customer base was up 8.6 percent from a year ago, with 267,000 net additions in the quarter, for a total 11.46 million. The prepaid base grew by 1.3 percent year-on-year but was down by 195,000 from March to 15.63 million at the end of June. Overall churn fell to 1.4 percent from 1.7 a year earlier. In its first quarterly results since Orange UK and T-Mobile UK merged, the mobile operator reported EBITDA of GBP 309 million, down from GBP 379 million a year ago, on services revenues down 5.3 percent to GBP 1.56 billion. While both figures were under pressure from cuts to terminations rates, the company said underlying revenues, excluding the regulatory impact, were up 1 percent on a pro forma basis. ARPU fell 7.7 percent from a year ago to GBP 19.2, and MOU dipped 0.9 percent to an average 197 minutes per customer. Non-voice services improved to 26.4 percent of service revenues, from 25.4 last year. The number of Orange home broadband customers was down 20 percent year-on-year to 838,000. The company said it's on track to meet its target of GBP 3.4 billion in synergies and an EBITDA margin of at least 25 percent by 2014. The updated integration plan includes expanding the retail footprint and increasing the number of network sites from over 16,000 to over 18,000, with further synergies identified in networks and IT. The first combined service will launch on 5 October, with the start of the integrated "super network".

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