EE posted steady 2013 results as service revenues and EBITDA saw year-over-year growth and three-quarters of a million new postpaid customers were added to its base.
The operator also reported growth for its 4G service as more than 2 million people were signed up to its ultrafast network, with 816,000 added in Q4 2013 alone. The 68% increase correlated with a decrease in price for ultrafast network as EE launched its £18.99 tariff in October. Service revenues increased by 2.6% y-o-y (£5.73 million), while data revenue jumped ten percentage points to 44% of ARPU. Service revenue change remained at 0.0% when excluding regulatory cuts, although that figure became -3.7% when these were taken into account. Data and text revenue made up 56% of ARPU, compared with 50% in Q4 2012.
Its adjusted EBITDA margin ended the year at 24.3%, with y-o-y growth of 2.8 percentage points. Its margin improved by to £1.57 million, representing a 10.1% y-o-y increase.
While 4G numbers grew, coverage hit the 70% mark, covering 45 million people. EE also tapped into the b2b sector, with over 4,100 companies signed up to its 4G proposition. 2013 also brought the MVNO additions of Asda, Phones 4u and Virgin Mobile.
In Q4, 194,000 postpay customers were added to EE's base, making 58% of the operator's customer base postpaid. Contract customers delivered 6 times more ARPU than prepaid users as its pay-as-you-go base reduced by 543,000 customers. Churn was 1.2% in Q4, the 11th quarter in a row that it has been this figure or below.
EE CEO Olaf Swantee said: ‘We successfully executed our strategy, growing our pay monthly base, delivering our targeted cost savings and achieving our best margin yet, all while cementing EE’s position as the UK’s best network for consumers and businesses alike. 2013 was the year of 4G, with two million customers enjoying the benefits of superfast connectivity on Britain’s most awarded network.’