Everything Everywhere (EE), the joint venture between British mobile network operators T-Mobile UK and Orange UK, has reported that, while pre-paid customer numbers fell by 227,00 in the three months to end-September 2011, post-paid subscribers rose by 185,000, representing the fourth consecutive quarter of post-paid subs growth for the company. Further, EE noted that 47% of its overall customer base is now signed up to a contract tariff, up from 43% at the end of 3Q 2010, while it also said it was focused on creating ‘future value through investment in post-paid growth and longer term commitments’, noting that that 70% of its post-paid base was now on a 24-month contract compared to 47% a year earlier. The company also noted an improvement in its customer value mix by claiming that smartphone penetration had risen to 65% at end-September 2011 from 45% a year earlier.
In financial terms EE reported that, excluding the regulated impact of Mobile Termination Rate (MTR) cuts, it had seen total underlying turnover increase by 0.6% y-o-y, while underlying service revenue grew 3.8%. Including the regulated impact of MTRs meanwhile total revenue declined by 4.3% to GBP1.697 billion (USD2.17 billion), with service revenue falling by 1.9% to GB1.556 billion.
Commenting on the results, Olaf Swantee, chief executive officer of Everything Everywhere, said: ‘Despite ongoing economic pressure and the impact of regulated cuts to mobile termination rates, our business performance is in line with our current expectations. The success we’ve had adding nearly 900,000 post-paid customers in the last year is helping to drive underlying service revenue growth. I am particularly pleased that we are attracting high numbers of new smartphone customers and have the lowest customer churn in the industry.’