O2 H1 revenue increase 4.2pc to £2.836m

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OIBDA hit £773 million up 7.2 per cent from last year

O2 has released its financial results for the first half of  the year showing a 4.2 per cent year-on-year (YoY) increase from £2.759 billion to £2.836 billion.

Reporting its financial results for the first half of this calendar year, the mobile operator revealed this increased 5.6 per cent in the second quarter compared to the same period in 2017.

The positive numbers have been attributed to higher handset revenues, stronger mobile service revenue trends and continuing growth in Smart Metering and ICT.

Mobile service revenue grew 2.4 per cent YoY (3.5 per cent YoY for Q2) due to higher subscription revenue and MVNO growth.

OIBDA hit £773 million up 7.2 per cent from last year (8.2pc for Q2) which was partially supported by a reduction in Ofcom’s spectrum Annual Licence Fee payments. Capital expenditure was £351 million for the period.

At the spectrum auction in April O2 spent £317.7m for 40MHz of 3,4GHz spectrum which is earmarked for 5G services. Additionally it secured all remaining 2.3GHz spectrum, 40MHz for £205.8m to boost 4G signal. The company claims to have spent £2 billion to improve services in the last two years.

Connection base stands currently at 32 million having added 100,000 new contract customers in the quarter with a churn rate of 1.0. O2 claim industry leadership in roaming, adding 27 more territories including: the USA, Canada, Australia, and the bulk of South American countries. Total roaming countries now stand at 75.

Backbone for success

O2 CEO Mark Evans said: “The backbone for our ongoing success is our award winning network supported by unprecedented levels of investment of £2 billion over the last two years. This has helped boost network coverage and reliability while preparing the ground for 5G.

“We are rolling out the new 4G airwaves we acquired in April as fast as we can so that customers right across the UK can benefit from these investments as soon as possible”.

FTSE 100 5G use case building

Additionally the operator has written to every CEO in the FTSE 100 Index inviting them to participate in O2’s 5G testbed trial.

The aim of the collaboration is to build business use cases for 5G that improve efficiencies in supply chains and production processes that will in turn, enhance customer experience.

O2 CCO Derek McManus said the UK will “thrive on the potential power of 5G”. Evans added: “Mobile, and specifically 5G is one of the UK’s most powerful opportunities to strengthen our economy, enrich society and outperform on the global stage.”.

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