Ratio helps operator increase handset market share to 11 per cent as CFO says 2011 results ‘show firm has turned a corner’
Three claims it is currently gaining three times as many customers as it is losing to other networks.
The operator said the 3:1 porting ratio, which indicates customers switching their phone from one network to another, has helped it increase its share of the handset market to around 11 per cent.
Three said its share of monthly contract sales is also well above its current share of the market.
During 2011, Three added 1.26 million customers, “the vast majority” of which were postpaid handset customers, said Three chief financial officer Richard Woodward (pictured).
Woodward said: “I look at it every day in terms of the figures we get from GFK in terms of share in the marketplace now and I know what my churn is and I know where my customers come from.
“I also know that more customers port into me than port out by a significant margin.
“What I am critical on is what percentage share do I take in the market every week, and as long as that is higher than what my current share is and my churn is under control, then I am growing.”
In its full-year 2011 results, Three recorded underlying profits of £30 million and revenues of £1.7 billion, up 14 per cent on 2010.
Woodward said the 2011 results showed Three had turned a corner and would continue to record growth in revenues and profits in the future.
He said: “We have seen competition being fairly active in the first quarter, but we have come back fairly robustly.
“I think it will continue to be a highly competitive market but we are comfortable that we now have a growing brand awareness and a growing relevance. People are starting to take us much more seriously off the back of our network and the other things we are doing.”