O2 profit up 9.2pc as contract adds hit three-year high

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Profits hit £357 million as continued success with its Refresh tariff drives operator to add almost 300,000 contract customers in Q2

O2 saw its profits rise 9.2 per cent year-on-year to £357 million in Q2, as it added the most contract customers in a three month period for three years.

The operator added 292,000 contract customers in the quarter, up 16 per cent from Q2 2012. It’s also the sixth successive quarter where over 200,000 contract subscribers have been added in a quarter.

O2’s contract base stands at 12.4 million customers, up 9 per cent year-on-year. These customers now make up 54 per cent of its total mobile customer base.

Contract churn fell below one per cent for the second consecutive quarter. O2 said this shows how its “market leading propositions are continuing to drive customer loyalty”.

The operator did lose 78,000 prepay customers. It’s total mobile base now stands at 23.1 million subscribers, up three per cent from a year ago.

Revenues improved 4.3 per cent sequentially to £1.38 billion, which O2 said was driven by the launch of its O2 Refresh tariff.

Since launching in O2’s retail shops on April and via its website on July 18, more than eight out of 10 customers are opting for the tariff.

Mobile service revenues were down 4.8 per cent year-on-year to £1.17 billion, a sequential improvement of three per cent. Excluding the impact of MTR cuts and roaming regulation, mobile service revenues would have fallen 0.9 per cent yearly, an improvement of two per cent sequentially.

O2 UK CEO Ronan Dunne (pictured) said: “This has been another solid quarter for us. Our market leading propositions are helping us attract and retain more and more customers every day.”

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