Everything Everywhere announced its merger integration is ‘ahead of plan’ as it revealed its second quarter results today (28 September).
The joint venture’s contract customer churn rates reduced from 1.7% to 1.4% in Q2 2010, while its overall customer base grew by 3.4% year on year to 27.9 million.
Contract customer growth was 8.6% year on year, with 267,000 net additions in the quarter.
Mobile service revenue for the period was £1.56bn, compared with £1.64m a year earlier. EBITDA was 18% down to £309m, from a figure of £379m in 2009.
The company said revenues and EBITDA in the quarter were impacted by the introduction of lower regulatory caps on mobile termination rates, causing a £101m reduction in revenue.
Meanwhile, underlying revenue performance remained 'stable', with a growth of 1% year on year, pre-regulatory impact.
The joint venture also confirmed it will meet its synergy net present value target of at least £3.5bn.
Developments to its original plans include expanding, not contracting, retail footprint and taking the network beyond an original radio site range of 16,000 to 18,000. It will remove around 9,000 network sites as a result.
Everything Everywhere said it will continuously grow its absolute level of EBITDA, with an expectation to achieve an EBITDA margin of 25%+ by 2014.
The joint venture confirmed its ambition to achieve double digit cashflow CAGR from 2010 to 2014.
From 5 October, Orange and T-Mobile customers will be able to access the two networks at no extra cost, in the first phase of multi-network strategy to combine 2G, 3G, 4G, fixed broadband and Wi-Fi in ‘unique customer offer’.