T-Mobile expected to post poor Q4 2008

T-Mobile expected to post poor Q4 2008

T-Mobile is expected by many to report a dire final three months of 2008 when the company unveils its financial results next month.

It will round off a poor year of financial performance for T-Mobile UK.

The operator saw its revenue fall by almost 7% to £794m in the three months between July and September 2008, compared to the same period in 2007. Profits had dived by 29% - although T-Mobile marked that the figure had been adjusted.

However, the operator had increased its contract customers from the previous quarter to 96,000, compared to 56,000 between April and June.

Towards the end of last year, T-Mobile had also stopped the loss of customers, which had seen its base reduced by more than half a million customers in the first six months of the year.

T-Mobile’s erratic levels of activity from quarter to quarter make it difficult to draw sustained periods of growth.

Analysts credited the operator’s ‘you will not get better value for £30’ as a strong proposition that helped get customers on £25 tariffs onto £30 tariffs.

One analyst said: ‘They spend their budget too early in the year, and the goalposts are moved. They’ve lost a lot of market share in the UK in 2008, and the profitability has tailed off as well.’

The company reported a ‘successful’ 2007, with a full year underlying earnings increase of 22% to £811m, and increased customer numbers by 400,000 to 17.3 million. Contract customers were up by 4% to 3.9 million and more than 2 million of these were on T-Mobile’s Flext tariff.

Written by Mobile Today
Mobile Today


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