EE service revenue and customer numbers down in Q4


Operator reports contract connections up 201,000 in Q4 but prepay down by 239,000

EE’s service revenue fell by 3.9 per cent year on year in the fourth quarter of 2012, to £1.46bn, as the operator saw its total customer-base drop by 38,000.

Over the course of last year the operator saw a 2.6 per cent drop in service revenue to £5.9bn, which it blamed on the effect of regulation.

In total it added 752,000 contract customers during the year, with 201,000 net contract customers adds in Q4 and 250,000 in Q3. During the last quarter of the year it lost 239,000 prepay customers, giving a loss of 38,000 customers in the quarter. Churn for the year was 1.2 per cent.

Prepay now makes up 48 per cent of its total customer base with smartphones accounting for 94 per cent of all new connections and 78 per cent of its contract base in total.

Although the operator did not split the figures into the percentage of its customers on each individual brand, it claimed 10 per cent of its business customers are now trialling 4G.

ARPU is currently £18.60, compared to £18.90 at the end of 2011, although EE claims customers who have moved onto 4G plans from Orange and T-Mobile have recorded an average ARPU lift of around 10 per cent.

EE CEO Olaf Swantee said: “In the past year, we delivered solid financial performance, underpinned by good progress integrating the business and success in attracting high value customers.

“At the same time, we built a strong platform for growth, launching a new company, new network, new customer brand, new retail estate and being the first to provide UK consumers and businesses with 4G mobile services alongside fibre broadband.”