T-Mobile and Orange joint venture reports a drop in turnover for last nine months but says contracts are up by 33 per cent
Everything Everywhere has reported a drop in turnover for the last nine months, but says it has sustained growth in its customer base.
In its financial results for the nine months to December 31 2010, the company said turnover stood at £5.3 billion – a drop from the combined £5.4 billion Orange and T-Mobile posted 12 months earlier.
Its adjusted EBITDA was £1.02 billion, down from around £1.2 billion over the same period in 2009.
Everything Everywhere chief executive Tom Alexander (pictured) said the drop in turnover and EBITDA was down to “regulatory and competitive pressures”.
Everything Everywhere added 752,000 new net contract additions to its customer base over the nine months – a 33 per cent rise from the same period in 2009 when it added 567,000.
The company said 300,000 of these new additions came in Q4 alone, up from 267,000 in Q4 2009.
It said in total 82 per cent of all pay monthly connections in Q4 were smartphones compared to 50 per cent in the same period in 2009.
However it saw a decrease in prepay sales from 732,000 to 559,000 over the period.
The joint venture said it was set to hit its synergy target – laid out when it was formed – of £3.5 billion thanks in part to gross OPEX savings of £146 million in 2010.
Alexander said: “Our continued cost management has allowed us to invest in contract customer growth across both brands.
“The strategy for T-Mobile was to focus on costs and profitability, in contrast to Orange’s customer growth strategy; these strategies are now aligned, with a continued focus on costs coupled with a drive to invest in contract customer growth on both brands, as evidenced by the performance in the fourth quarter.
“The company is committed to the long term corporate strategy, as outlined back in September 2010 and expects to grow the contract customer base across both brands.”