B2B exit helps Three’s profits treble to £86m in six months

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Business connections were a “distraction”, according to operator’s CFO Richard Woodward

Three has labelled the B2B market a “distraction”, claiming its exit from the space last year has since aided its growth and profitability.

The comments were made this month by the company’s UK CFO Richard Woodward, after its results showed Three’s operating profit had increased 231 per cent year on year in the first six months of 2013, to £86 million.

10 million customers
Three is also now ahead of its 2015 target to achieve a base of 10 million users, with numbers currently topping 7.5 million.

Woodward (pictured) informed Mobile News during a conference call question and answer session that the growth could partly be attributed to Three’s decision early last year to stop taking on new business customers.

He said: “Distraction would be the word. We want to be very simple and focus on consumers. Our absolute target market is the high-end consumer segment.

“Making a more formal notice that we were out of new growth in B2B is just exactly that – simplifying and continuing to focus on what we do well, which makes running a business clearer and simpler,” he added.

Woodward also revealed that Three’s B2B exit meant its wholesale business now had the opportunity to grow.

He hinted that Three would work with more MVNOs in the future: “The B2B exit has given us a lot of room and the complete absence of any kind of channel conflict around our wholesale business.

“Wholesale has the oppor-tunity to pick up through MVNOs we’re working with in the future.”

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