Everything Everywhere: Evolution On Track With Commercial Stability Despite Slowing Market
28 April 2011
External Link: shop.orange.co.uk
Q1 Commercial Highlights (all numbers consolidated)
Mobile service revenue maintains positive trajectory with 1.6% growth YoY (excl. regulation) Continued contract customer additions, up 160,000, despite challenging trading environment – a YoY increase of almost a million. Continued improvement in value of customer base with contract customers now making up 45% of the base, against 41% in Q1 2010 Continued growth in smartphone sales, now accounting for 84% of contract connections, up from 62% YoY Contract churn continues its long term improvement to 1.3% monthly average, down from 1.5% in Q1 2010 All comparisons throughout this press release are with pro forma Q1 2010 numbers – unless otherwise stated.
Extended 2G national roaming across Orange and T-Mobile to 15.1 million customers, with 350 million calls now completed by customers using the alternate network Orange Broadband most improved operator in USwitch, BroadbandChoices and JD Power Q1 customer surveys Integration
Synergies ahead of plan and efficiency programme continues with major IT outsourcing project with T-Systems Retail store format trials: Launched five Everything Everywhere stores and six dual branded concession stores Customer propositions
Launch of contactless mobile payments, in association with Barclaycard, announced for Spring 2011 Successful launch of iPad 2 with tariffs available on both Orange and T-Mobile from March Innovative products launched: Including a new business proposition from the Enterprise team that ports landline calls to your mobile and a refresh to the Orange pre-pay offer with top-ups from as little as 10p Brand
Strong marketing campaign recognised with T-Mobile winning TV Commercial of the year at the British Television Advertising Awards for the second year running The UK’s leading communications company, Everything Everywhere, today announced its financial results for the first quarter of 2011. The results follow the new company’s strategy, revealed six months ago, to operate the UK’s best and biggest supernetwork, with a focus on building the most loyal, and valuable customer base.
The company, created by the successful merger of Orange and T-Mobile, added 160,000 post-paid customers, as part of its strategy to migrate prepaid customers to higher-value contract propositions, bringing the total customer base to 27.7 million. We saw growth in our core mobile business with mobile service revenue up by 1.6%, despite the challenging economic conditions and churn continued its long-term improvement to 1.3%.
Tom Alexander, Chief Executive Officer of Everything Everywhere, said: “Since announcing our strategy just six months ago, we are progressing well and have significant momentum, specifically through our creation of the UK’s first supernetwork. We are also ahead of plan to deliver an NPV of £3.5 billion worth of synergies following our merger. We remain fully confident of achieving our commercial and financial ambitions.
“Despite a challenging competitive and economic environment, we’ve added 160,000 postpaid
customers, sustaining growth in service revenues, up 1.6%. It has also been a second successive quarter of strong growth in T-Mobile’s contract customer base, following our investment in the brand.
“Our prepaid customers continue to upgrade to contracts, drawn by improved value in entrylevel tariffs and increased smartphone availability, delivering a better value mix to our business. Contract customer churn has improved over the past twelve months, and the proportion of those on 24-month contracts continued to increase as customers sought higher-value smartphones. The proportion of contract customers against prepaid is up from 41% last year to 45% at the end of the quarter.”
Mobile service revenue maintained its growth trend, up 1.6% YoY, reflecting growth in the contract customer base on both brands. Overall turnover showed a decline of 1.7% excluding regulation, due in part to lower equipment and broadband revenues, and a change in our wholesale portfolio in April 2010, following a strategic review. However, our longer term wholesale position improved in the first quarter of 2011 with three new MVNO partner wins.
The enterprise business has performed well in the quarter, and has returned to growth, with the addition of significant corporate wins, on the back of the combined network strength of the former Orange and T-Mobile networks.Strong progress has already been made on the integration of the two businesses with synergies ahead of schedule and a number of efficiencies made, including a major IT outsourcing contract with T-Systems.
Access to both 2G networks has been extended to over 15 million T-Mobile and Orange customers in the first quarter, representing an unrivalled and unique differentiator, with 3G national roaming to follow. Initial results of the 2G national roaming have been very encouraging with over 350 million calls made, and 1.5billion SMS sent, as a result of customer access to the combined network of 28,000 sites.
Tom Alexander continued: “We are fully confident of achieving our stated ambition of 25%+ EBITDA margin for 2014, in spite of the ongoing challenging economic, regulatory and market conditions. For the remainder of the year we will continue to focus on improving the lifetime value of both our prepay and postpay customers through innovative propositions; as the industry and market dynamics evolve, our customer marketing will be increasingly characterised by retention and improving customer loyalty
NOTES TO EDITORS
For more information contact:
Orange, Everything Everywhere,
Other Orange Mobile NewsBritish Bosses Are Taking It To The Cleaners
Orange Survey Reveals A Nation Of Swappers
Joanna Trollope To Chair The Orange Prize For Fiction In 2012
Orange UK Unveils New Homepage Design
Very Special Guest Diddy Dirty Money For Orange Rockcorps 2011
Orange Launches Barcelona And Stockholm Handsets In Stores Across The Uk
Smartphones Headline Glastonbury In 2011
Orange Launches “best Ideas” Campaign To Promote Corporate Offering
Orange Broadband Research Reveals Cyber-haggling On The Rise As 1 In 2 Brits Go Online For The Best Deal
Wretch 32 Gets Down And Dirty For Orange Rockcorps
News By Company
News By Date
© 2010 companynewsdirect.com E&OE
All trademarks and copyrights are the property of their respective owners.
Any views or opinions expressed within content submitted to companynewsdirect.com are those of the author and not Company News Direct.
Use of this website is subject to our terms and conditions