Mobile virtual network operator (MVNO) Virgin Mobile France has reported an 18.8% year-on-year increase in revenue to GBP390.2 million (USD605.7 million) in FY2011/12, bolstered by strong post-paid user growth and a cut in termination revenues – stemming from its first year as a full-blown MVNO. An unconfirmed report from Telecompaper says Virgin Mobile France ended its financial year with 1.92 million customers at end-March, unchanged on the same time in 2011, although it says it rebounded from the initial impact of Free Mobile’s launch in January this year.
The MVNO says that around 70% of its customers were on post-paid contracts at the end of its financial year, helping to generate significant revenue growth in the operator’s fiscal fourth quarter. Virgin Mobile France’s full-year EBIT reached GBP21.5 million in the period under review, compared to GBP20.6 million in FY2010/11, and says it will continue to grow its contract user base and revenues in the current financial year. The company notes that the economic conditions in France are tough and that there is downward pressure on APRUs, but nonetheless expects to record between 5% and 10% revenue growth this year – aided by a reduction in the aforementioned termination revenues. The MVNO’s core business earnings are forecast to be ‘similar’ to those booked in FY2011/12, while CAPEX costs will have an adverse impact on cash generation, it said. Virgin Mobile France also notes that it has dipped its toes into the domestic broadband market in May this year, which will further boost revenues.