EE profits up as turnover falls slightly in 2014

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Operator declares it has achieved 2014 targets as 4G coverage hits more than 80 per cent but revenues fall by 2.4 per cent

EE’s turnover declined 2.4 per cent annually to £6.3 billion in 2014 but saw its profits rise one per cent to £1.6 billion.

Reporting its financial results for last year and Q4 together, it revealed now it has a 4G base of 7.7 million customers, adding 5.7 million in the 12 months.

It smashes EE’s initial target of  six million 4G customers by the end of last year and makes it Europe’s largest 4G operator. A third of its consumer contract 4G base are now on double-speed 4GEE Extra plans.

The operator now has more than 7,000 corporate accounts using 4G, with the addition of more than 800 in the final three months of last year. Customers include Deloitte, Sky, Rightmove, L’Occitane and Cumbria Constabulary.

4G coverage now reaches more than 80 per cent of the UK population, covering 510 towns and cities and 4,000 villages. It double speed 4G network now reaches more than 60 per cent of the population.

In total, EE now has 28.4 million mobile connections on its base, broken down by 24.8 million direct and 3.6 million MVNO connections. It added 824,000 contract customers, up 5.2 per cent year-on-year including M2M. Operating revenue was down slightly by 1.4 per cent from 2013 to £6 billion.

In Q4, EE added two million 4G customers, with 94 per cent of contract customers selecting the faster network, of which nearly half opted for 4GEE Extra.

Blended ARPU in the quarter was up 0.5 per cent yearly to £19.10, with contract ARPU down four per cent to £28.90 and prepay ARPU down 8.8 per cent to £4.40.

Churn remained steady at 1.2 per cent – the 15th successive quarter at 1.2 per cent or below.

EE CEO Olaf Swantee (pictured) said: “Over the past three years we have transformed our company into a clear market leader. We have achieved our goals of maintaining revenue leadership, generating £3.5 billion in cost savings to reach a 25 per cent adjusted EBITDA margin and building the UK’s best network with Europe’s largest number of 4G customers.”

More to follow.

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