Everything Everywhere has unveiled an updated strategy for growth alongside its first financial results.
The T-Mobile and Orange joint venture company, which officially merged on 1 July, confirmed its planned merger synergy target of £3.5bn. The updated plan includes expanding its retail footprint and increasing the number of network sites from an originally planned 16,000 to 18,000. It has also identified further ‘synergies’ in networks and IT.
Everything Everywhere has also announced its second quarter results, showing ‘positive underlying revenue growth’, and ‘strong net customer additions despite challenging market conditions’.
The results are its first full quarter figures since its legal formation on 1 April 2010.
The company said its strategy is based on three principles: A lean and agile backbone – a highly efficient cost structure and the biggest 2G and 3G network in the UK; sustained commercial leadership – growing retail footprint, embracing the smartphone revolution and expanding direct channels while building a platform for growth – developing new revenues from £1.4bn to £1.9bn in 2014 in b2b, fixed broadband, wholesale and new business activities.
Everything Everywhere said it ‘continues to make excellent progress on its integration plans’, with an accelerated timeline, following early regulatory approval in March this year.
Senior management is now in place at both vice president and director level, the company added. Meanwhile, on 5 October it will introduce the first major benefit of the joint venture and the first phase of its ‘super network’ – joint roaming.
Tom Alexander, CEO of Everything Everywhere, said: ‘Everything Everywhere has made rapid progress in the six months since incorporation, with a strong leadership team in place and a clear strategy based on transforming the market through network leadership.
'We have identified in excess of £3.5bn of synergies, allowing us to further invest in our networks and building our customer offer for both today and tomorrow. Our aspiration is to give people instant access to everything everywhere and with the launch of national roaming next week - enabling our customers to access what matters to them over two national networks – we’re well on our way.'
Tim Höttges, CFO of Deutsche Telekom and chairman of Everything Everywhere said: ‘Everything Everywhere continues to make good progress towards integration and reflects on a strong and successful partnership. With an experienced leadership team in place, we are confident that Everything Everywhere will quickly and efficiently build on its initial successes.’
Gervais Pellissier, deputy CEO and CFO of France Telecom, said: ‘Today is an important day for both Everything Everywhere and its shareholders, France Telecom and Deutsche Telekom. Despite the challenges of integration, the company has confirmed its original synergy target and its financial commitments to the shareholders.
'Furthermore, Everything Everywhere is now offering its customers a strongly differentiated proposition, through the use of two national networks, the first step in creating a unique “super network” for a Digital Britain.’