O2 UK has reported a revenue increase of 4% year on year to €3.416bn (£2.8bn) with OIBDA up 7.7% to €883m (£738m).
The operator reported its results for the second quarter and first half ended 30 June 2010 today (29 July).
O2’s total customer base (excluding Tesco Mobile) increased by 4.5% to reach 21.6 million customers at the end of June, largely driven by a strong expansion in the contract segment, which grew 11.7% year on year.
At the end of June 2010, 47% of O2’s customer base was contract, after it recorded 307,000 contract additions in the second quarter – a 58% quarter on quarter increase.
O2 also attributed its growth to strong customer loyalty, reflected in its churn rate of 1.1% in the contract segment and 2.6% overall. The increased adoption of smartphones also helped secure customers, the network said.
Matthew Key, chairman and chief executive of Telefonica Europe, specifically pointed out that O2’s loss of exclusivity on the iPhone in the UK had not harmed the company.
‘We see no softening of the iPhone sales since the end of exclusivity. In fact, in the first half of this year, O2 sold more iPhones compared to the same time last year when we had exclusivity and, in total, we have now sold three million iPhones into the UK.’
Total ARPU saw a 3% decline in the first half to €24.6. However, voice ARPU softened its decline in the second quarter to 8.5%, due to ‘increased weight of the contract segment’.
Meanwhile, data ARPU saw a 6.9% increase to €9.9, after strong non-P2P data ARPU growth.