Operator says it is on track to exceed its target of one million 4G customers by the end of the year
EE more than doubled its 4G base to 687,000 customers in Q2, with contract numbers up 6.3 per cent from last year with the addition of more than 200,000 subscribers.
The operator added 369,000 4G customers in the three months to the end of June compared to 318,000 in the first five months since its launch last October.
EE revealed that 56 per cent of new or upgrading customers are opting for a 4G contract or 4G-ready devices, up 12 percentage points from Q1. It said that as a result of these latest figures, it is now on track to exceed its target of one million 4G customers by the end of the year.
It added 216,000 customers in the quarter, up 6.3 per cent year-on-year, with 55 per cent of its base now made up of these subscribers, an increase of five per cent from the previous quarter. Contract churn was down by 0.1 per cent to 1.1 per cent, resulting in the ninth successive quarter it’s been at 1.2 per cent or below.
These customers are spending six times more than prepay customers, the latter of which saw a drop of 671,000 subscribers. EE now has 25.3 million customers in total – 14 million contract customers and 11.3 million prepay customers.
EE’s EBIDTA in the first half of the year was up 9.1 per cent year-on-year to £734 million, a margin of 22.9 per cent. This was compared to 20.3 per cent in the first half of the year, resulting in its best margin performance since the formation of the company. EE said this was driven by growth in contract customers and strong progress on network optimisation and retail integration.
Turnover was £1.6 billion in the quarter and £3.2 billion in the first half of the year, down 2.3 per cent and 3.1 per cent respectively. Service revenue in the quarter stood at £1.4 billion and £2.8 billion for the first six months, down 4.4 per cent and 4.9 per cent respectively.
EE CEO Olaf Swantee (pictured) said: “Today’s results demonstrate our success in building our new brand and differentiating our network to drive commercial momentum while continuing to deliver cost savings to increase our margin performance.
“We’ve doubled the rate at which we’re adding 4G customers and doubled our 4G speeds across 15 cities to deliver the world’s fastest network for our customers – indoors, outdoors and on key commuter routes.”