EE reports flat turnover in H1 2015, though 4G subscriber numbers continue to climb

28 Jul 2015

EE, the UK’s largest cellco by subscribers, has published its financial results for the six months ended 30 June 2015. In the period under review, total turnover was GBP3.116 billion (USD4.75 billion), representing an increase of just 0.1% when compared to the first six months of 2014. Operating revenue meanwhile totalled GBP2.975 billion, down by 0.5% against H1 2014, though EE noted that in the second quarter of 2015 operating revenue had increased by 0.1% year-on-year to GBP1.506 billion. Excluding the impact of regulation, however, the operator said that operating revenue in the first half of this year was actually up by 1.2%, while in the same fashion operating revenue for the second quarter was up 2.2% when excluding the impact of regulation. Adjusted EBITDA in the first six months of 2015 was GBP830 million, representing a more than 9% increase against the corresponding period a year earlier.

In operational terms, EE’s total mobile subscriber base stood at 30.027 million at the end of June 2015, unchanged year-on-year. Post-paid connections accounted for more than half of that total, standing at 15.050 million at the end of the first half of 2015, up from 14.638 million a year earlier, while pre-paid accesses declined from 9.901 million to 9.196 million over the same period. Notably, EE revealed that it now has 10.9 million customers signed up to a 4G plan, a figure which it said meant it had maintained its position as ‘the largest 4G operator in Europe’, while it added that it remains on track to surpass 14 million LTE-based connections by the end of this year. Meanwhile, the number of customers signed up to mobile virtual network operators (MVNOs) that operate over EE’s network stood at 3.724 million, up from 3.678 million at end-June 2014. In the fixed broadband arena, customer gains were again reported, with EE having 919,000 such subscribers on its books at the end of the period under review, compared with 775,000 at mid-2014.

Commenting on the quarterly performance, EE’s chief executive Olaf Swantee said: ‘Our established leadership in 4G and key differentiators such as Wi-Fi calling are working well for the business. We’re the clear network market leader and this, combined with our strong operational performance, has led to a return to revenue growth while delivering our best ever EBITDA margin. The business continues to focus squarely on improving customer satisfaction and on cross-selling our innovative range of consumer and B2B 4G connected products.’

United Kingdom, EE