O2 posts strong Q3 results

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Hot on the heels of last week's iPhone launch, O2 has published its third quarter results, reporting group revenue of €3.7 billion (£2.6 billion) and demonstrating that the operator is doing particularly well in the UK.

Revenue for the period ending 30 September grew by 9.7 per cent for O2 UK, while average revenue per user (ARPU) figures were also strong, tallying £24.3 - up from £23.1 in the third quarter of 2006 and a little higher than 2007's second quarter which stood at £23.40

Revenues for Ireland and the Czech Republic were also positive, showing a rise of 4.3 per cent and 3.4 per cent respectively, while ARPU figures for these regions were €47.0 and CZK 535 respectively.

Germany's financial statement was less rosey, however, with the company reported a revenue drop of 1.8 per cent compared to the same quarter last year, while ARPU fell from €25.3 in Q3 2006 to €20.8 this year.

"O2 has delivered another robust set of results this quarter, adding 840,000 mobile customers in the third quarter, taking the total mobile customer base to 37.24 million, 8.3 per cent higher than last year," said Peter Erskine, chairman and chief executive of Telefónica O2 Europe.

"In the UK, like for like revenue growth of 10.2 per cent in the first 9 months of the year is well above the market average and at the top end of our guidance range. The UK added 115,000 net customers, including 159,000 on contract, helped by migrations from prepay. Blended monthly ARPU growth of over £1 year on year illustrates that we are successfully focusing on higher value customers, while OIBDA margin of 27.3 per cent improved from the previous quarter."

Mobile data results for the company were also strong, with group SMS volumes up 12 per cent year-on-year to reach more than seven (7.27) billion messages, while group non-SMS data revenues topped €330 million for the year to date.

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