‘We will fight fiercely’: O2’s CEO reacts to strong financials

‘We will fight fiercely’: O2’s CEO reacts to strong financials

O2 CEO Ronan Dunne has told Mobile that he wants to keep the network’s momentum going following the network’s strongest customer growth figures in 6 years.

The operator’s CEO took the opportunity to emphasise that the brand would continue to press ahead with its own clear strategy regardless of the ongoing discussions between Hutchison Whampoa and Telefonica over O2’s sale.

Speaking at a press event following the network’s 2014 results, Dunne said: ‘Until the deal is closed we will fight fiercely for customers, the law doesn’t allow me to do anything else. We’ll be out there kicking as hard as we always do.’

‘The bottom line is we nailed it in 2014, we delivered a record breaking 830,000 new mobile customers in the market last year which was excellent.’

‘You might ask with all this success why are we selling? We see the market moving around us and we believe that it is better to be proactive rather than reactive. [in terms of negotiations] An agreement is likely to be put in place in a reasonable period of time, but the regulatory process is likely to be a lengthy one. Until then it’s very much business as usual.’

Revenue for the brand stood at £1,511 million in the quarter which was a growth of 3.2% year-on-year. Mobile service revenue also increased by 2.9% year-on-year, excluding the impact from the O2 Refresh model.

Capital Expenditurefor O2 in the fourth quarter amounted to £142 million a 17.7% year-on-year increase, the network said this was due to its ongoing 2G and 3G network enhancement and 4G roll out.

Contract churn excluding M2M remained at 1.0% in the fourth quarter and for the full year.

As Mobile has previously revealed the network recorded the strongest customer growth figures in 6 years

Contract net additions for the network were also up to 291,000 in the quarter its best performance in over 4 years. Meanwhile prepay net additions grew by 103 thousand in the quarter as a result of the continued success of the ‘Big Bundles’ tariffs launched in May 2014.

O2’s mobile contract customer base grew 6% year-on-year which the brand said now accounted for 56% of the mobile base. There was a total mobile customer increase of 4% year-on-year to 24.5 million at the end of December 2014.



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