EE revenue down 2.4% in Q3; confirms hitting 4G user target early

22 Oct 2013

EE, the UK’s largest cellco by subscribers, has published its financial results for the three months ended 30 September 2013, with the operator highlighting the ‘rapid’ uptake of its 4G services. To that end, EE confirmed that at the end of the period under review its post-paid 4G subscriber base was up by 493,000 net additions quarter-on-quarter (or 72%) to 1.18 million users, exceeding EE’s self-imposed target of one million such accesses by end-2013 some four months ahead of schedule. Notably, the cellco said it had seen ‘strong progress’ in upgrading its existing customers to 4G, with migrations ‘showing high single digit percentage increase in average revenue per user (ARPU)’. Further, EE also made specific mention of improvements in its customer value mix, noting that it had seen a net increase of 181,000 high value contract subscribers, with 56% of its total customer base now on a post-paid tariff. Despite its advances in the 4G arena, however, total mobile accesses were down year-on-year, standing at 25.123 million, compared with 26.185 million subscribers at end-September 2012.

In financial terms, in the third quarter of 2013 EE generated total turnover of GBP1.631 billion (USD2.52 billion), down 2.4% against the corresponding period in 2012, while mobile services revenue was GBP1.446 billion, a decline of 3.3% year-on-year from GBP1.496 billion in 3Q12.

Commenting on the results, Neal Milsom, EE’s chief financial officer, said: ‘Consumers and businesses across the UK are recognising that EE has the best network for the smartphone era, with more superfast 4G coverage than all the other networks combined. We attracted half a million 4G customers in the quarter and large companies including ASDA, BT, Canon, Expedia, Kimberly-Clark and Virgin Media selected EE’s network to help grow their businesses.’

United Kingdom, EE