O2 adds 319,000 customers in Q3 to take base past 24m

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The additions resulted in the operator’s strongest quarterly growth over the past two years, with success driven by several contract wins within the public and private sectors

O2 added 319,000 customers in Q3, to push its base past 24 million subscribers. The additions represented the operator’s strongest quarterly growth over the past two years.

The is broken down by the addition of 209,000 contract and 110,000 prepay additions in the quarter, the latter of which O2 said was the result of its ‘Big Bundles’ tariffs launched at the end of May. The plans offer customers 4G data at the same price as 3G data.

Its contact base grew six per cent year-on-year and now accounts for 56 per cent of the 24.1 million subscribers it now serves, which increased three per cent at the end of September.

O2 said its growth in the three month period has been driven by its success in delivering services to the public and private sectors. Public sector account wins included Ministry of Justice, Devon and Cornwall Police, Coventry City Council and Maidstone and Tunbridge NHS, with private sector account wins including Starbucks, Eddie Stobart, Canadian Bank of Imperial Commerce and Peverel.

It said the launch of its ‘No 10’ tariff in the quarter has helped it win new major public sector contracts at a rate of two per week, including one local council per week.

Launched exclusively for the public sector and third sector organisations, it costs £10 a month and provides customers with wither the 4G-enabled Nokia Lumia 635 or Samsung Galaxy S3 with unlimited minutes, texts and up to 5GB of data.

Elsewhere, revenue grew 2.3 per cent year-on-year to £1.433 billion, while contract churn remained at one per cent, which O2 said was market-leading.

Capital expenditure was up 9.6 per cent to £158 million from last year, driven by O2 ongoing enhancement of its 2G and 3G networks, as well as the roll-out of 4G services across the UK.

Wolverhampton, Leicester, Reading, Portsmouth, Wakefield and West Bromwich were among the cities and towns to benefit from the work in the quarter. The operator is investing £1.5 million in its network every day to improve connectivity for customers across 2G, 3G, 4G and WiFi.

O2 UK CEO Ronan Dunne (pictured) said: “We have delivered another successful quarter with strong customer growth, positive revenue growth and continued market-leading customer loyalty. We’re the trusted provider for many businesses and organisations in both the public and private sectors, helping them thrive in an increasingly digital Britain.”

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