O2 hikes revenue forecast |
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Mon, 13 Nov 2006 13:15
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LONDON - Mobile phone company O2 has increased its revenue forecasts for its core UK businesses at the same time revealing that had added 812,000 new customers in the third quarter. The UK unit averaged a net 524,000 new customers in the three months ending September 30, the company said.
O2 reported 14.2 percent net revenue across all services. It added 294,000 net new users at its German unit with a revenue growth of 6.1 percent. However Irish business revenues fell 1.7 percent, but jumped by 6.5 percent in the Czech Republic.
"This faster than expected growth has allowed us to again raise service revenue guidance and we now expect 14 percent to 15 percent growth year on year for the 11 months to Dec. 31," the company said in a trading update.
O2, which was acquired by Spanish company Telefonica for 17.7 billion pounds last year, also revealed that 16,000 new customers were signed up in Ireland, while 55,000 new customers chose its service in the Czech Republic.
Average revenue per user (ARPU) was £272 in the UK, up from £265 reported at the same time last year. "O2 has continued to thrive as part of the Telefonica group and in the third quarter we have maintained our momentum in highly competitive markets," said Peter Erskine, O2's chairman and chief executive.
However underperformance at the German end was a bit concerning, O2 admitted. "The (German) market continues to be highly competitive and this, coupled with termination rate cuts, contributed to the decline in 12-month rolling ARPU, although monthly ARPU increased quarter on quarter," Mr Erskine added.
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