Connecting to LinkedIn...

Everything Everywhere posts 4.3% total revenue drop in Q3

W1siziisijiwmtuvmdmvmjqvmjivndqvndmvmzayl2zpbguixsxbinailcj0ahvtyiisijywmhg0mdbcdtawm2uixv0

Telecommunications firm Everything Everywhere has reported a drop in total revenue of 4.3 per cent to £1,697 million for its third quarter, it was announced today.

Financial results for the group reveal that, although there has been an increase in value mix of its consumer mobile business as well as investment in other businesses, service revenue has fallen 1.9 per cent in the 12 weeks to September 30th 2011, standing at £1.56 billion.

Formed following the merger of Orange and T Mobile last year, Everything Everywhere claims that these results emphasise a growing trend away from prepaid mobile contracts to postpaid options.

Its company figures reveal that 65 per cent of its postpaid customers are now on smartphones, with 85 per cent of new postpaid customers opting for smartphones.

Prepaid customers decreased by 227,000 compared to the same period in 2010, while postpaid customers increased by 185,000. Though this would appear to be positive news for the business, this represents flat year-on-year growth.

Olaf Swantee, recently appointed CEO of the retailer, remained positive about the results and the company’s future standing in the market.

“Despite ongoing economic pressure and the impact of regulated cuts to mobile termination rates, our business performance is in line with our current expectations,” he commented.

“The success we’ve had adding nearly 900,000 postpaid customers in the last year is helping to drive underlying service revenue growth. I am particularly pleased that we are attracting high numbers of new smartphone customers and have the lowest customer churn in the industry”.

Improved, high-speed access is a major priority for the group, as MBNL, its network joint-venture, contracted Virgin Media to deploy an enhanced mobile backhaul to deliver faster data speeds to customers during the period.

In September an overhaul of the brand’s senior management team was conducted which saw a new structure implemented with 25 per cent fewer senior roles and the appointment of ten new executives reporting to Swantee.

Commenting on the re-structuring at the time, Swantee said: “The structure of the team is function oriented with clear accountability so we can accelerate the execution of our key plans and priorities.”

However, The Telegraph reports today that Swantee is underwhelmed by the brand’s performance thus far.

“Everything Everwhere is not a brand, it’s a silly name with a stopping effect,” the paper quotes him as saying, adding that the company will not release results of an ongoing review of its trio of brands until the end of the month.

Published on Wednesday 26 October by Editorial Assistant

Articles similar to Everything Everywhere

Articles similar to Financial results

comments powered by Disqus