O2 UK reports 10.7pc revenue increase

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Telefónica O2 UK today claimed its best ever quarter for net additions, and a 10.7 jump in revenues.

It added 401,778 customers to its base in the third quarter, and a total of 697,501 for the year to date, taking its total base to 19.1 million. Q3 net additions were up 250 per cent up at September 30 on the same period last year, and net additions for the year to date were up 100 per cent on the same period in 2007.

O2 UK year-on-year revenue growth was 8.7 per cent for the quarter. UK revenue was €5.297 billion, up 10.7 per cent for the nine months to September 30. Operating income for the quarter rose 5.5 per cent on Q3 2007, and was €1.36 billion for the nine months, 10.6 per cent up year-on-year.

Q3 net contract additions were 277,593, up 74 per cent on the same period last year. O2 UK’s prepay base grew by 124,185 during the quarter, compared to a decline of 44,298 in Q3 2007. Its contract base now comprises 38.9 per cent of its total base, up 1.4 per cent over 12 months. Its total base is 6.6 per cent up.

UK ARPU was up sequentially, but flat year-on-year at £24.30. Data revenues were up 8.9 per cent on Q3 2007, and 10.2 per cent for the year-to-date, to average €10.4 per user.

UK contract churn fell to 1.3 per cent in the quarter, from 1.7 per cent in the same period last year and 1.4 per cent in the previous quarter. Overall churn was not available.

Its UK’s DSL broadband service registered 72,870 net additions in the quarter, up 16 per cent on Q2, and 196,381 in the first nine months. Its total fixed line broadband base now was 267,090 at September 30.

Telefónica Europe chairman and chief Matthew Key said: “In the UK we outperformed the market again in the third quarter with revenue growth net customer additions on contract, a record for the business, driven by continued improvements in churn, which is now market leading in the UK, and strength across all market segments.”

 

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