4/27/2015 5:18:16 PM
Regulation cuts hit EE’s revenue for Q1 2015, but 4G growth continues
EE saw its operating revenue for the first quarter of 2015 drop by 1.1% from the previous year’s figures. Explaining the reason for this dip the network said it was the result UK termination rates being cut and roaming price cuts in Europe.
The network’s 4G customer base continued to grow with the brand adding 1.7m customers in the quarter to reach base of 9.3m. EE revealed that 96% of new connections were now on 4G, with nearly 50% of those signing up to its premium double-speed 4GEE Extra.
EE’s average revenue per user (ARPU) was also down due to the regulatory cuts by -0.5% year-on-year. Churn for the operator remained low at 1.2% for the 4th year in a row.
Speaking to Mobile as the figures were announced the network’s CFO Neal Milsom, said: ‘Our revenue was effected by UK termination rates being cut and roaming price cuts in Europe, which is beyond our control. When that is taken out of the equation our revenue was positive driven by a combination of growth the postpaid space underpinned by the expansion of the 4G base. Some of our smaller units are showing strong growth, our fixed line unit had growth 15% and some of our new categories such as tablets and MiFi have strong single figure revenue growth as well.’
Stay tuned to Mobile to hear what EE CEO Olaf Swantee had to say about the network and the state of the UK mobile market.