O2’s revenues have taken a hit as smartphone sales slump, the networks financials has revealed.
The operator’s Q2 2016 results showed that revenue suffered a yoy drop of 4.4% to £1,346m which the network said was caused by a market wide slowdown in smartphone sales. This global downturn has caused ripples across the industry with manufacturing giants Apple and Samsung also suffering financial setbacks.
O2’s mobile service revenues remained consistent as high customer subscription fees were offset by roaming regulation while churn levels hit a record low of 0.8%.
O2’s quarterly results came in period of uncertainty for the network after its sale to Three UK owner Hutchison Whampoa hit a regulatory block. O2’s ownership fell under the spotlight as new potential buyers came forward while management buyouts, sale to private equity and stock flotation were all suggested.
Since then Telefonica has said O2 is no longer for sale but the network has still faced a change in leadership with long serving CEO Ronan Dunne stepping down from the helm after nine years.
Commenting on the network results Dunne referred to O2’s new ‘More for you’ marketing campaign, as well as its ‘Like New’ proposition, which will offering consumers pre-owned devices.
He said: ‘Our Q2 results show that in an ultra-competitive market we continue to drive strong customer growth and unrivalled customer loyalty. Our ‘More for you’ campaign highlights the services and perks that set us apart from our competitors and our ‘Like New’ proposition leverages our trusted brand status. Our focus for the rest of the year is to continue to deliver for our customers through our innovative products and services and the experiences that only come with being part of O2.’