EE Revenues Fall 5.4 Per Cent

UK telco EE has reported £1.4bn in service revenues for Q1, a drop of 5.4 per cent year-on-year.

Thats despite the introduction of a third operator brand, also called EE, alongside its Orange and T-Mobile brands, which has seen strong take-up for its 4G services, according to EEs statement.

 The operator has gained 318,000 4G users in five months of trading, 2.3 per cent of EEs total customer base – but that has failed to offset a drop in subscribers overall.

However, its underlying ARPU (Average Revenue Per User) has grown by 2.2 per cent year-on-year. 53 per cent of mobile customers are now on postpaid plans, which deliver five times higher ARPU than prepaid, compared to 49 per cent a year earlier.

During the period, smartphone penetration among its postpaid customers hit 82 per cent, up from 71 per cent last year. Data revenue grew to make up 36 per cent of ARPU, from 27 per cent last year.

“Today’s results are in-line with our expectations, and we are making good progress focusing on high value segments,” said EE chief financial officer Neal Milsom. “We’re announcing 318,000 4G customers after just five months of trading, strong postpaid net adds and continued growth in our underlying average revenue per user.  We expect to strengthen our industry leadership position in the year ahead as the 4G roll out continues and we introduce double-speed 4GEE.”

 

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