EE returns to revenue growth following earnings boost

EE returns to revenue growth following earnings boost

EE has returned to revenue growth for the second half of 2015, the operator’s half year results have shown.

Figures released for Q2 2015 revealed that operating revenue edged to 0.1% for the quarter, with ‘regulatory impact’ still effecting the network’s numbers.

The operator improved its average revenue per user for the quarter growing 2.2% year-on-year, whilst operating revenues hit £2,975m. This return to revenue growth generated the network’s ‘best ever’ EBITDA margin of 26.6%, up 9.2% from the following year.

The network continued its 4G expansion with 1.5m adds in Q2, bringing its total 4G base to 10.9m. EE explained that this performance put it ‘well on track’ to achieve its customer target of 14m by the end of the year, with 90% of the UK now covered by its 4G network.

EE suffered a prepaid decline of 184,000 year on year, this was offset by strong performance in postpaid. The company announced 178,000 net adds for the first half of the year, with a 1.1% churn rate. CEO Olaf Swantee praised the results, describing the network as a ‘clear leader’.

He said: ‘Our established leadership in 4G and key differentiators such as Wi-Fi calling are working well for the business. We’re the clear network market leader. The business continues to focus squarely on improving customer satisfaction and on cross-selling our innovative range of consumer and B2B 4G connected products.'

EE also announced that its Connected strategy is ‘starting to deliver’, following the launch of the 4GEE Action Cam. The company reported ‘robust growth’ in tablet and mobile WiFi sales, with the number of connected products per post paid customer up 4.5% year on year.

The network’s Q1 figures saw operating revenue drop by 1.1%. EE explained that the reason for this dip was the result UK termination rates being cut and roaming price cuts in Europe.

 

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