Tango Luxembourg 3Q14 sales fall 7.4%

29 Oct 2014

Luxembourg’s second-largest mobile provider by subscribers, Tango (part of the Proximus [Belgacom] group) has released its 3Q14 results, reporting revenue down 7.4% year-on-year (y-o-y) from EUR32 million (USD40.6 million) to EUR30 million, although an increase from the 2Q14 revenue of EUR28 million. The telco says the decrease over the twelve-month period is mainly from the regulated mobile termination rates (MTR) drop put in place on 1 July 2014 but this has been offset in part by growth in revenue from the post-paid mobile (up by 13,000 y-o-y), triple- and quadruple-play customer base. Pre-paid mobile customer numbers declined due to a fall in the life-span of pre-paid offers. Active mobile customers rose to 278,000 in 3Q14, up 0.2% from 3Q13, while blended ARPU dropped 9% to EUR27.80 a month, due to low MTR. Turnover for the year-to-date reached EUR86 million, down 8% compared to EUR94 million at the same date in 2013.

Tango’s CEO Jean-Francois Williame said if excluding the MTR decrease the company’s sales would have increased 3.5% during 3Q14 and the results were as the company expected. Tango expects to confirm growth in 4Q14 following the launch of the iPhone 6, new iPad offers and changes to its family discounts for quadruple-play services.

Luxembourg, Tango (Luxembourg)