Three financials reveal user and revenue growth

Three financials reveal user and revenue growth

Three’s annual financial results announcement reveals the UK operator has increased year on year revenue 4% to £2.27 billion, with the operator citing their data roaming offering, improved coverage and Wi-Fi calling.

 

The news also came with the network announcing that its average user now consumer 6.4GB per month, more than five times the average user. It said the increase in data demand was driven by an increase in streaming service use.

 

The company’s CEO Dave Dyson commented on the results stating, ‘A clear focus on delivering a quality experience for our customers is at the heart of our strategy to increase the size and profitability of the business. We’ve continued to make significant progress toward tackling the issues that frustrate and annoy mobile users in the UK.

 

We look forward to the outcome of the next spectrum auction which will be vital in determining our ability to continue to challenge the market for the benefit of all UK consumers.’

 

Average Margin Per User (AMPU) stood at £12.76, though in the industry’s usual metric, Average Revenue Per User, the operator saw a decrease from £20.10 to £19.24 per month. Elsewhere in the report, the network added 213,000 net customers in 2016 and increased their NPS to +20.

 

The over 6GB of data continues Three’s reputation for carrying an amount of data disproportionate both to its subscriber base and to its spectrum holding, leading some industry experts to question the imbalance. CCS analyst Kester Mann tweeted, ‘Average data usage per 3UK customer jumps 28% YoY to 6.4GB/mth. But question is how sustainable is this growth given weak spectrum position?’

 

The industry is still awaiting Ofcom’s final verdict on the upcoming spectrum auction rules following a concerted attempt by Three and its allies to get the regulator to place a lower cap on the auction. This would require EE and Vodafone to not only not be able to bid on spectrum, but also sell off some they already hold within the 4G range.

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