BT EE first combined results reveal savings

BT EE first combined results reveal savings

The first quarterly report by BT since their takeover of EE completed on 29 January shows the mobile network has continued to grow its total and post-paid customers to 30.6 million and 15.4 million respectively.

Churn also remained static amidst post-paid customers, sitting at 1.1% as previously.

It was also revealed that the integration of EE into BT is to be cheaper than BT had expected when it agreed the acquisition while they had also undervalued the synergies of the takeover by year four at 360 million compared to the 400 million in savings now expected.

Commenting on this, BT Chief Executive Gavin Patterson stated,‘The integration of EE is going well and we now see the opportunity to deliver more synergies than we originally expected, and at a lower cost. And we’re reorganising our business to better serve customers both in the UK and internationally.’

 BT’s MVNO BT Mobile also showed continued growth, adding 100,000 new Sim-only subscribers, taking their total sim-only customers over the 400,000 mark.

In broadband services, EE contributed 11,000 new customers towards the PLC’s 81% market share when it comes to new additions. While a substantial increase for EE, in its new group this accounts for 5.14% of new these connections – some of which will be cannibalising BT’s existing base.

BT’s television service also showed growth with a 28% consumer base increase driven in part by BT’s acquisition of increased sports broadcast rights such as the UEFA Champions League, with a corresponding 45% increase in BT sports audience. However, EE’s TV service was absent in the report despite the financial year-end also marking the one year anniversary of the service.

The report looks forward with references to their pledges to reach 95% fibre and 4G coverage by 2020, move all EE call centres back to the UK and to implement their 4G emergency services contract awarded in December 2015. Like the report, commenters are also looking forward, with many mentioning the opportunities a further intergrated BT and EE is likely to utilize in the coming months.

Paolo Pescatore, Director, Multiplay and Media at global technology analyst company, CCS Insight reacted to the release stating, ‘We believe that we will see a phased approach to replacing EE's Brand; BT Sport will be available to EE customers, BT’s products will emerge in EE shops and finally consumers will see a return to the BT brand on the high street by the end of the year.’




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