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EE revenue up 2.2pc to £1.5 billion for Q2 2014

EE revenue up 2.2pc to £1.5 billion for Q2 2014

EE revenue up 2.2pc to £1.5 billion for Q2 2014

Operator said underlying revenue up 1.1 per cent YOY while EBITDA was £830 million for first half of the year

EE has returned to revenue growth after posting Q2 revenue of £1.5 billion, 2.2 per cent up on the same quarter in 2014.

The operator said including regulatory impact, its revenue was up 0.1  per cent on the previous year for the three months ending June 30.

For the first half of 2015, operating revenue was £2.97 billion, up 1.1 per cent excluding regulatory impact.

EE announced H1 EBITDA of £830 million, giving “record” margins of 26.6 per cent , up 2.2 percentage points on the six months of 2014.

Its 4G customer base grew by 1.6 million to 10.9 million during the quarter, up 6.7 million on June 2014. It’s double-speed 4G EE Extra is also now available to more than 70 per cent of the UK.

Almost 50 per cent of EE’s postpaid customers selecting its double-speed plans during the quarter. Overall, its connection base (including M2M) is 30.9 million, including 3.7 million MVNO customers.

The operator said its 4G network now covers 90 per cent of the UK population, with more than 600 towns and cities covered. 

EE said all of its mobile net adds during the quarter were on 4G. The operator stopped selling 3G contracts in March when it axed the Orange and T-Mobile brands. It’s pre-paid base was down by 184,000 on the same period in 2014.

EE CEO Olaf Swantee said: “Our established leadership in 4G and key differentiators such as Wi-Fi calling are working well for the business. We’re the clear network market leader and this, combined with our strong operational performance, has led to a return to revenue growth while delivering our best ever EBITDA margin.

“The business continues to focus squarely on improving customer satisfaction and on cross-selling our innovative range of consumer and B2B 4G connected products.”

Cross-selling

The operator said a focus on its cross-selling strategy had seen more connections join the operator during the quarter, with its tablet base up 61 per cent year-on-year, while it’s mobile WiFi base had grown by 27 per cent. 

It launched the EE Action Cam at the end of June, and also launched its EE Power Bar rewards scheme during the first half of 2015. It also launched WiFi Calling.

It’s B2B base is now up 7 per cent yoy with more than 8,300 corporates using EE.  B2B data usage up 7.6 per cent. It also increased its M2M connection base by 13.6 per cent YOY to 176,000 by the end of the quarter.

Fixed broadband net additions reached 35,000 in Q2 while fixed line revenue was up 18 per cent year-on-year.

CCS Insight principal analyst for operators Kester Mann said: “Today EE announced some impressive 2Q15 results, boosted not just by continued momentum in 4G, but also encouraging performance in fixed-line and enterprise.

“The company’s strategy to use TV to drive broadband additions appears to be working. Fixed broadband net additions reached 35,000, meaning EE appears to be on track to surpass 1 million fixed broadband customers by end-2015.

“Furthermore, it has seen impressive uptake of the EE Power Bar – being used by >1.1 million customers – which has played an important role in maintaining low post-paid churn at 1.1 per cent in 2Q15.

“There is also evidence of progress in EE’s connected strategy, which aims to bring a greater number of devices to the network. EE saw good growth in tablets and mobile Wi-Fi and recently launched “the world’s first 4G action camera”. Finally it has seen “good momentum” in own-brand devices, with a number of new tablets and smartphones recently launched with the aim to bring 4G to a wider demographic.”

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