O2 Group posts strong 3Q KPIs, plans Slovak launch in 1Q 2007

13 Nov 2006

O2 Group, the pan-European mobile service provider recently consolidated within Telefónica of Spain, said it added 812,000 new mobile customers in the third quarter of 2006, taking its total mobile customer base to 34.4 million, up 14% year-on-year. O2 UK added 524,000 net new customers, up 15% year-on-year, taking its base to 17.338 million, driven by users upgrading their contracts, resulting in a continued improvement in post-paid churn for the fifth quarter in a row. O2 Germany added 294,000 net new users, up 19% to 10.629 million, but saw twelve-month rolling ARPU fall on the back of rising competition, whilst O2 Ireland added 16,000 net new customers to end the quarter with 1.603 million subscribers, 2% higher than at the same time last year. Telefónica O2 Czech Republic (formerly Eurotel and Cesky Telecom), however, lost 10,000 net mobile customers whilst its fixed line division ended September with 427,000 ADSL connections, up from 221,000 a year earlier. O2 Group revenues for the three months ended 30 September were EUR3 billion (USD3.85 billion) and operating income before depreciation and amortization (OIBDA) was EUR786.4 million.

O2 group plans to launch commercial mobile services in Slovakia in the first quarter of 2007, after receiving a 20-year licence to operate GSM and UMTS networks in the country in August. The new operation, known as Telefónica O2 Slovakia, will operate in close partnership with the group’s business in the Czech Republic, and will take advantage of synergies in areas such as network and back office functions.