Operator, which is subject to a takeover bid from Three, lots 86,000 customers in Q1 but churn remained “market leading” at 0.9pc
O2 saw its revenue fall 1.9 per cent to £1.3 billion in the three months to March 30, but saw Operating Income Before Depreciation and Amortisation (OIBDA) grow 5.5 per cent to £355 million.
The operator blamed the decline in revenue on a continuing market wide slowdown in high-end smartphone sales, which has already impacted the results of the likes Apple.
It saw mobile service revenue increase by 2.6 per cent year-on-year, with a OIBDA margin of 26.3 per cent for the year.
O2 added 115,000 contract customers during the quarter, taking its base to around 14.2 million. But it saw its prepay base decline by 201,000, meaning a total net loss of 86,000 customers for the quarter. Despite this, O2 said churn remains at an “industry leading” 0.9 per cent for contract customers. It’s base sits around the 25 million connections mark overall.
The operator had several major contract wins in the quarter including the Department for Business, Innovation and Skills, SSE, Hays, and it is set to be awarded the contract for the Ministry of Defence.
The results come as doubts have been cast over O2’s future ownership, with the £10.25 billion takeover bid by Three-owner CK Hutchison widely expected to be declined by the European Commission next month.
O2 CEO Ronan Dunne said: “In what is a traditionally quiet quarter for the market we have continued to compete fiercely by differentiating our services and giving more back to our customers.
“As result, our customer loyalty remains market leading. We will continue to innovate and differentiate in the market and remain impossible to ignore.”