10/27/2010 11:15:00 AM
Everything Everywhere contract customers up, but revenue flat in Q3
Everything Everywhere has seen a 19.6% year on year increase in the number of contract customers added to its base, it has revealed in its Q3 results.The mobile operator’s customer base has grown by 1.4% year on year and now has almost 28m customers.
Contract customers grew by 8.8% year on year and now represent 11.6m of the operator’s customers. Meanwhile prepay customers declined year on year from 15.8m to 15.4m, a 2.4% drop.
The additional contract customers mean that Everything Everywhere’s customer base is now made up of 43% contract customers, compared to contract customers being counted for 40% of the base during the same period last year.
Despite customer additions, revenue only grew by 0.1% year on year from £1.772m to £1.773m.
ARPU across contract and prepay fell by 4% year on year from £20 a month to £19.3 a month.
Contract ARPU fell by 4.8% from £37 to £35 and prepay customers ARPU fell by 13.1% from £8.40 a month to £7.30.
Despite ARPU falling, the operator saw an increase in the sales of smartphones. Smartphone contract sales counted for 75% of PAYM connections compared to the same period last year when they counted for 38% of sales.
Everything Everywhere CEO Tom Alexander said: ‘Despite challenging trading conditions and Everything Everywhere going through a period of transition, we’ve continued to grow our contract customer base with net additions up 19.6% year on year to 185,000. In addition to the significant progress we’ve already made towards integration, we have continued to focus on our day-to-day business, growing our customer base and maintaining revenues and returning to topline revenue growth.
‘The UK market remains highly competitive, but once we get through our period of transition, and we are able to leverage both our scale and joint networks, as well as realise the proposed synergies, we expect to see further progress on improving our financial position.’