Telco EE, the result of a merger between Orange and T-Mobile, has managed to boost its first half earnings to £734 million.
EBITDA margins rose to 22.9 percent, compared to 20.3 percent in the first half of 2012. The main drivers were postpaid customer growth and progress in both retail and improving its network. Second quarter revenues fell 2.3 percent year on year to £1.61 billion while customer numbers dropped 2.4 percent to 27.5 million.
EE had a lead on 4G coverage, being awarded spectrum before rivals and raising subscriptions to nearly 700,000 to date – from 500,000 at the beginning of June. It is currently the only operator that has launched LTE all across the UK, and is pursuing an aggressive growth strategy to cement its position as top dog.
Postpaid customers grew 6.3 percent to 14 million, with such customers making up over half of all EE’s subscriber base.
Analyst company IHS notes EE’s monthly average revenue per user (ARPU) fell 1.6 percent year on year to £18.4 on the back of regulation and increased competition.
EE’s chief executive Olaf Swantee would not confirm whether the company would go public, but did say the reason for rumours it will are because margins are being driven up, the Telegraph reports.
