EE, the UK’s largest cellco by subscribers, recorded a 2.4% year-on-year decline in revenues in the year ended 31 December 2014. For the period under review EE’s generated a total turnover of GBP6.327 billion (USD10.4 billion), down from GBP6.482 billion a year earlier, while underlying operating revenue was relatively stable, falling by just 0.2% year-on-year; including the impact of regulatory cuts, however, operating revenue fell by 1.4% in 2014, to GBP6.041 billion. Adjusted EBITDA, meanwhile, totalled GBP1.598 billion in 2014, representing growth of 1.0% against the previous year.
In operational terms, at the end of December 2014 EE’s mobile subscriber base totalled 24.476 million, down marginally from 24.774 million a year earlier, while the number of mobile virtual network operator (MVNO) subscribers served by the company’s network stood at 3.709 million, up from 3.605 million. EE’s 4G customer base continued to climb, and indeed surpassed its target of six million for the end of the year, reporting that 7.7 million subscribers had taken up an LTE-based service with it, representing an annual increase of 284%. Machine-to-machine (M2M) connections, meanwhile, increased from 1.644 million to 1.917 million, with EE also reporting a total of 834,000 fixed broadband accesses, up from 726,000 at end-December 2013.
Commenting on the results, Olaf Swantee, EE’s chief executive officer, said: ‘Over the past three years we have transformed our company into a clear market leader, with the UK’s undisputed best network. We have achieved our goals of maintaining revenue leadership, generating GBP3.5 billion in savings to reach a 25% adjusted EBITDA margin and building the UK’s best network with Europe’s largest number of 4G customers.’