Everything Everywhere revenues remain flat in 3Q 2010

28 Oct 2010

The joint venture between UK mobile network operators T-Mobile UK and Orange UK, Everything Everywhere (EE), has announced its financial and operational results for the three months ended 30 September 2010, revealing that revenues were flat against the same period last year in pro forma terms. For the JV’s third fiscal quarter, and the first full three-month reporting period since the two companies formally integrated on 1 July 2010, it posted turnover of GBP1.773 billion (USD2.8 billion), up just 0.1% against the GBP1.772 billion in the same period a year earlier. However, the operator did claim that regulatory cuts had reduced revenues by GBP43 million, noting that excluding the impact of regulatory measures turnover in the quarter was up 2.5% year-on-year.

In operational terms, the combined Orange and T-Mobile subscriber base rose to 27.896 million at the end of September 2010, up 1.4% compared to the 27.508 million the duo had a year earlier. EE noted that subscriber growth had been particularly strong in the post-paid sector, with contract customer numbers up 8.8% y-o-y helping to offset a 2.4% decline in pre-paid subscribers. As at 30 September 2010 43% of the company’s subscribers were signed up to post-paid services, up from 40% at the end of 3Q 2009.

Commenting on the results, Tom Alexander, EE’s chief executive office, said: ‘Despite challenging trading conditions and [the company] going through a period of transition, we’ve continued to grow our contract customer base with net additions up 19.6% year-on-year to 185,000. In addition to the significant progress we’ve already made towards integration, we have continued to focus on our day-to-day business, growing our customer base and maintaining revenues and returning to topline revenue growth. The UK market remains highly competitive, but once we get through our period of transition, and we are able to leverage both our scale and joint networks, as well as realise the proposed synergies, we expect to see further progress on improving our financial position.’

United Kingdom, EE, T-Mobile UK