EE expands 4G network as it releases results for the first half of 2013

25 Jul 2013

UK mobile network operator EE has announced that it has extended its 4G network to ten more towns across the UK, bringing its coverage to a total of 95 towns and cities, or around 60% of the population. The latest locations to benefit from the increased speeds offered by the cellco’s LTE network are: Altrincham, Bedford, Camberley, Crawley, Farnborough, Farnham, Maidstone, Rochdale, Tonbridge and Welwyn Garden City. Further, the operator has also confirmed that, as part of its ongoing rollout of ‘double speed’ 4G, speeds of up to 60Mbps downstream are now being offered in Belfast, Newcastle and Southampton. As previously reported by CommsUpdate, earlier this month EE upgraded the speeds available in twelve cities, those being: Birmingham, Bristol, Cardiff, Derby, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham and Sheffield.

Meanwhile, the company has also published its results for the three-month period ended 30 June 2013, revealing that revenues in the quarter fell by 2.3% year-on-year to GBP1.606 billion (USD2.47 billion). Turnover for the first half of the year was also down, standing at GBP3.211 billion, and representing a decline of 3.1% against H1 2012. EBITDA for the first six months of 2013 totalled GBP595 million, however, up from GBP551 million a year earlier, with adjusted EBITDA coming in at GBP734 million in H1 2013, up 9.1% y-o-y; the latter increase, the company said, had been driven by post-paid growth and strong progress on cost savings, in particular from network optimisation and retail integration. Capital expenditures over the first half of this year came in at GBP295 million, up from the GBP245 million the company spent in the first half of 2012.

In terms of customer uptake, EE was keen to highlight the growth of its 4G customer base, noting that the adoption rate for LTE plans had doubled in 2Q12 over the previous five months. At the end of the reporting period a total of 687,000 customers had upgraded to the operator’s 4G services, prompting it to say it was on target to exceed its target of one million LTE subscribes by end-2013. Despite the growth in its 4G customers, EE’s total wireless subscriber base stood at 27.517 million at end-June 2013, down by 2.4% from the 28.182 million wireless accesses it had a year earlier. Fixed broadband connections also declined, falling by 1.4% y-o-y to 704,000.

Commenting on the company’s performance, EE CEO Olaf Swantee noted: ‘Today’s results demonstrate our success in building our new brand and differentiating our network to drive commercial momentum while continuing to deliver cost savings to increase our margin performance.’

United Kingdom, EE