O2 adds 646,000 new subscribers to its contacts list |
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Wed, 20 Jul 2005 21:05
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Europe's sixth-largest mobile phone company, O2 reported its astonishing performance in the first quarter, announcing that it had made 646,000 new subscribers over the period and had surpassed all profit targets.
Boasting of around 24.6 m customers, O2 informed that 232,000 subscribers were added in Britain, considerably beating forecasts as well as its opponent, Virgin Mobile, while 412,000 new customers had been obtained in Germany.
UK service revenue of O2 soared 3 %, while growth in Germany jumped to a lofty and unexpected 24%, instigating O2 further to raise full year forecasts. However, this ruffled a few feathers of analysts who believe that O2 is being over confident.
To that, chief executive of O2, Peter Erskine retorted assertively, “We've got a lot more confidence, having got three months under our belt, that it looks very doable. We'll do what we should do at the half year stage.”
Meanwhile, average revenues per user (ARPU) declined in UK to £271 from £273 in the last quarter, with Germany ARPU sliding to 356 euros from the earlier quarter’s 363 euros. Also publishing its full-year results of last year under Europe's IFRS, i.e. International Financial Reporting Standards that would assist the industry to build predictions on the present fiscal year, O2 forecast a relatively steady EBITDA margin for UK. EBTIDA means earnings before cutting interest, depreciation, tax and amortization. O2 expects an even substantial increase of revenue in Germany and a German EBTIDA margin of 20%.
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