O2 Q1 revenues up 5.3 per cent

Written by: Mobile News
O2 Q1 revenues up 5.3 per cent

Revenues rise by 5.3 per cent to almost £1.6 billion year on year added predominantly by strong data use

O2 has posted a year on year increase in revenues of 5.3 per cent to almost £1.6 billion for the first quarter of 2011. Mobile services grew 3.6 per cent year on year to £1.4 billion.

Non SMS data revenues, which grew 34.5 per cent year on year were a “principal factor” for the increase in growth according to O2. Total data revenue grew for the period by 9.8 per cent and represented 43 per cent of mobile service revenue.

Total data traffic was also up – by 45 per cent year on year as customers increased their mobile broadband use.

Mobile voice traffic however, decreased by 4.6 per cent compared to Q1 2010. This was blamed on lower consumption in the prepay market.

O2’s mobile customer base grew four per cent compared to the corresponding period to 22.3 million due, mainly to a strong growth in the contract segment which was up nine per cent compared to one year ago.

The operator said contracts now account for 48 per cent of its total mobile customer base. Contract net additions reached 151,000 due to demand for smartphones with attached data rate plans.

In total smartphones accounted for 82 per cent of total sales and upgrades in the quarter.

Mobile net additions stood at 75,000 – 33 per cent higher than in Q1 2010 but significantly lower than growth in previous quarters, particularly Q4 2010 when net additions stood at over 250,000. O2 says the drop was due to its decision “not to chase volumes”.

Churn grew by 0.2 per cent year on year, reaching 2.8 per cent for the quarter, with contract churn at 1.1 per cent.

O2 chief executive Ronan Dunne said: “We’ve had a solid quarter against the backdrop of an extremely tough economy, fragile consumer confidence and less activity on the high street.

“We’ve performed well against our competitors focusing on profitable growth whilst providing what we believe is the best overall customer experience and doing what we can to help customers through these tough times.”

Meanwhile Tesco Mobile, the joint venture between O2 and Tesco has added 51,000 new customers to its base in Q1 2011, an increase of 24 per cent year on year.

Its total customer base now sits at 2.6 million.

Leave a Reply

To advertise on this site, call 0203 122 0872

Recent Comments

Noted - thanks...
Please reread the penultimate paragraph - that quote doesn't say that microsoft is treading water - it says that Blackberry is: "While Microsoft is making significant effort to grow its prese...
What an ugly pig of a phone!...
I've always supported blackberry and am hoping that this phone helps them get back on to the road to redemption with their past and current customers. The BB10 rollout was a complete unmitigate...
The BlackBerry Z30 was released on October 1, 2013 - not "mid October" as you suggest. What was that you said about research? We tend to round dates off to the nearest month - rather than somethi...
Hi Chris, Our Mystery Shopper did do a review in Middlesbrough a few weeks ago - http://www.mobilenewscwp.co.uk/2014/09/09/mystery-shopper-middlesbrough/ However, we are looking at sending ...
How can you say in the little quip under the headline that this was the first BlackBerry released in a year? In your own article you have quoted Marty Beard as saying " We began rolling out the Z...
Your Mystery shopper surveys are always concentrated in the Southern regions.. Will you be planning on seeing how the northerners represent their respective brands?...
so you pay the same for adsl and fibre from your broadband provided do you?...
Ok I have an old contract sim only with three from 5 years ago I pay £11 a month and I get All you can eat 4g plus unlimited 3 to 3 calls plus 600 minutes cross network calls plus 3000 text no...

Social Media Feed