EE Revenues Drop Three Per Cent

Ahead of the launch of its new self-branded 4G network on 30 October, EE has released its financial results for Q3, 2012. Between its Orange and T-Mobile operators, service revenues have dropped by three per cent from the same period last year, which EE says is due to the impact of regulatory cuts on roaming charges and mobile termination rate.

51 per cent of EE customers are on post-paid contracts, up by 250,000 – a number that only looks set to increase with the launch of EE as a stand-alone network. Thats beneficial to its revenues, as apparently contract customers deliver five times ARPU than those on prepaid.

The Orange and T-Mobile parent company, which started the quarter as Everything Everywhere, also revealed that 74 per cent of its subscribers use a smartphone. That adoption has helped push non-voice revenue up by six per cent year-on-year, to 48 per cent of its ARPU (Average Revenue Per User).

“We are delivering solid revenue performance and successfully attracting high value contract customers, while creating growth opportunities through our new superfast EE brand that will soon launch the UK’s first 4G mobile services,” said EE chief financial officer Neal Milsom. “We have achieved key business goals in the past quarter and firmly established EE as the UK market leader.”

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