MTR cuts prompt revenue, EBITDA decline for Everything Everywhere

28 Jul 2011

Everything Everywhere (EE), the joint venture created following the merger of UK mobile network operators Orange UK and T-Mobile UK, has unveiled its financial results for the six months ended 30 June 2011, reporting declines in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) in the wake of regulatory rulings which reduced mobile termination rates (MTRs) from 1 April 2011. In the first half of 2011 EE reported total turnover of GBP3.367 billion (USD5.5 billion), down from GBP3.472 billion in the same period a year earlier, while mobile service revenue in the six-month period stood at GBP3.071 million, down 1.1% year-on-year from GBP3.105 billion in 1H10. EBITDA for the company’s first half of 2011 was GBP582 million, representing an almost 8% decline compared with the GBP632 million reported in the same period a year earlier. Capital expenditures in 1H11 meanwhile were GBP216 million, down slightly from GBP221 million.

At the end of June 2011 EE reported a total of 27.541 million mobile subscribers, down 1.4% against the 27.931 million it had at end-June 2011, with post-paid subscribers accounting for 44.8% of those, up from 41% a year earlier. Monthly average revenue per user (ARPU) stood at GBP18.7 in the three months ended 30 June 2011, down from GBP19.2 in the same period of 2010, while average monthly minutes of use per customer was 199. Alongside mobile subscribers, EE also reported a total of 716,000 fixed line broadband accesses as at end-June 2011, down from 797,000 a year earlier.

Commenting on the results Tom Alexander, who recently resigned from his position of CEO at EE, noted: ‘The first half of 2011 was a period of good progress for Everything Everywhere. Leveraging our unique strengths and market leadership, we are delivering on our strategic plan set out in September 2010 and are ahead of plan with our synergy capture.’

United Kingdom, EE