Everything Everywhere revenue flat as falling ARPU holds back steady contract additions
Everything Everywhere, the joint venture operation between Orange and T-Mobile, recorded falling ARPU and flat revenue in Q3, despite healthy contract additions.
Total revenue was up marginally in Q3 2010 to £1,773 million from £1,772 million in Q3 2009, with revenue from mobile services down slightly from £1,588 million to £1,586 million in Q3 year-on-year.
Total subscriber numbers increased 14 per cent to 27.9 million, with contract customers increasing 8.8 per cent to 11.6 million. Smartphone sales accounted for 75 per cent of contract sales during the quarter, compared to 38 per cent a year ago and 64 per cent in the previous quarter.
Prepay subscribers fell 2.4 per cent to 15.5 million, with fixed line service subscribers falling 17.9 per cent to 795,000.
Net contract additions improved 19.6 per cent during Q3 to 185,000 compared to 155,000 in Q3 2009. Churn declined from 1.7 per cent to 1.4 per cent year-on-year.
Overall ARPU fell four per cent £20.1 to £19.3 in the respective quarters, with contract ARPU down 4.8 per cent and prepay ARPU down 13.1 per cent.
Average monthly Voice ARPU was down 3.4 per cent to £14.3, with customers using 2.6 per cent less minutes per month, 2.4 per cent less for contract customers.
Everything Everywhere said integration of the Orange and T-Mobile businesses continues, with recent plans announced to reduce the overall headcount by 1,200.
Operationally, Everything Everywhere noted the introduction of the iPhone 4 and Windows Phone 7 devices, and the launch of HD voice services on Orange, with T-Mobile to get the service next year, as positives during the quarter.
The group also started offering customers the opportunity to roam across both networks, claiming to have more than one million customers registered for the service.
Everything Everywhere chief executive officer Tom Alexander said: “The UK market remains highly competitive, but once we get through our period of transition, and we are able to leverage both our scale and joint networks, as well as realise the proposed synergies, we expect to see further progress on improving our financial position.
“Our aspiration remains to give people instant access to everything everywhere, and with over one million customers already signed up to our national roaming joint-network deal, launched only a few weeks ago, it’s great to see our customers already embracing the benefits of the new company.”