EE revenues down on regulatory impact in 2013

21 Feb 2014

British mobile network operator EE has published its financial results for the year ended 31 December 2013, with the company highlighting the fact that, excluding the impact of regulation, revenues for the period remained stable. EE reported that total turnover for the twelve month period was GBP6.482 billion (USD10.1 billion), down 2.6% against the previous year, while service revenues stood at GBP5.734 billion, representing an annual decline of 3.7% from FY2012. In the last quarter of the 2013, meanwhile, EE noted that service revenues had increased by 1.1% y-o-y, excluding regulatory cuts (down 1.5% when including regulatory impact). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in 2013 totalled GBP1.574 billion, up 10.1% against the previous fiscal year.

In operational terms, the highlight of the report was the revelation that EE’s 4G subscriber base had risen to 1.996 million as at 31 December 2013; unsurprisingly perhaps, the company also confirmed that it had surpassed the two million milestone in early January 2014. Having added approximately 816,000 LTE-based accesses in the last three months of 2013 alone, EE claimed that such a rate of uptake put its 4G adoption rate ‘on par with the world’s fastest’. In addition, the operator pointed to the fact that its higher-value post-paid subscriber base was up by 756,000, or by 5.6%, in the year to end-December 2013. EE’s total mobile subscriber base meanwhile totalled 27.148 million at the end of the reporting period, down from 28.232 million at end-2012. Fixed broadband customer numbers climbed, however, reaching 726,000 at the end of 2013, up from 693,000 a year earlier.

Commenting on the company’s performance over the year, EE CEO Olaf Swantee noted: ‘We successfully executed our strategy, growing our pay monthly base, delivering our targeted cost savings and achieving our best margin yet, all while cementing EE’s position as the UK’s best network for consumers and businesses alike. 2013 was the year of 4G, with two million customers enjoying the benefits of superfast connectivity on Britain’s most awarded network.’

United Kingdom, EE