Three boasts customer growth as H1 2015 churn rates drop

Three boasts customer growth as H1 2015 churn rates drop

Three says it added 391,000 new customers for the first half of 2015, with revenue up 10% year on year to £1.07bn.

The network explained the growth was due to a combination of reduced churn and increased brand loyalty, coupled with the success of its Feel At Home initiative.

Three reported an increase in prepaid and post pay active customers, boosting the latter by 247,000 adds with handset revenue growth soaring to 22%. However, average revenue per user fell to £20.38 from £21.02 in H1 2014.

The Hutchinson Whampoa owned business explained that fall of the Chinese stock market will not affect the service driven network: ‘We’ve been through periods of uncertainty in our lifetime here at Three and it doesn’t tend to have an impact.

‘Telecoms is a fairly robust stock and where people get confused is around devices and if people slow down their desire to buy devise or purchase regularly that doesn’t change the services required. We’re driven by services not devices, it’s a fairly defensible sector and the situation won’t impact our five year plans’

CFO Richard Woodward explained that Three’s low churn rates mean customers are starting to see the benefit of being on the network.

He said: ‘Growth was driven by a combination of new customer growth, increased loyalty and reduced churn, and increasing average Margin per Customer.

‘Reducing churn to 1.5% during this shift shows that our customers clearly understand the value and benefit of being with Three. Contract average margin per user is also increasing year on year by over £1, showing that customers are valuing the increased quality and services like Feel at Home.

‘Our NPS continues to lead the market and I’m proud to say that in the second quarter we’ve increased the gap between ourselves and our competitors even further.’

The Hutchinson Whampoa owned company explained that the customer growth was due to a number of ‘leading benefits’ such as its roaming scheme and Three InTouch; its WiFi calling app.

Three contributed the popularity of it’s the two initiatives to the surge of data demand across the network. The network has continued its 4G rollout, increasing data usage per customer to 4.65GB, with 50% of users now on the higher speed.

















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