Combined T-Mobile and Orange turnover down by 2.7 per cent despite Everything Everywhere’s addition of 160,000 new contract customers
Everything Everywhere’s first quarter turnover has dropped by 2.7 per cent despite mobile revenue growing by 0.4 per cent.
Total turnover for the quarter stood at 1.704 billion – a drop from the combined £1.751 billion Orange and T-Mobile posted one year ago. Revenue increased from £1.548 billion to £1.554 billion year on year.
The dip in turnover is the second since the merger of T-Mobile and Orange. In February Everything Everywhere said turnover for its first nine month in operation fell from £5.4 billion to £5.3 billion.
Despite the drop the operator said it added 160,000 new contract customers over the last quarter, growing its mobile service revenue by 1.6 per cent.
It says contract customers now account for 45 per cent of its client base compared to 41 per cent one year ago, mainly thanks to smartphone uptake. 84 per cent of Everything Everywhere’s contract customers now have a smartphone as part of their plan.
Contract churn across both T-Mobile and Orange also continues to fall, it now sits at a monthly average of 1.3 percent compared to 1.5 percent in Q1 2010.
Everything Everywhere chief executive Tom Alexander (pictured) said despite the drop in turnover the operator was not in trouble.
“Since announcing our strategy just six months ago, we are progressing well and have significant momentum, specifically through our creation of the UK’s first ‘supernetwork’,” Alexander said.
“We are also ahead of plan to deliver an NPV of £3.5 billion worth of synergies following our merger. We remain fully confident of achieving our commercial and financial ambitions.”
Alexander said T-Mobile and Orange network sharing was now available to over 15 million subscribers and over 350 million calls and 1.5 billion texts sent as a result of the initiative.