Everything Everywhere reports mixed debut results
Revenues and pre-pay customers drop in numbers but contracts are on the rise for the joint venture.
Everything Everywhere has reported its first financial results, leaving investors with a mixed bag to deal with.
Revenues for the nine month period reported, ending on 31 December 2010, were 5.3 billion a decrease of two per cent year on year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also fell, but more significantly, by 22 per cent to 837 million.
The company formed by the merger of Orange and T-Mobile did manage to pick up a raft of new contract customers though. Numbers were up 33 per cent compared to the same period in 2009, equating to 752,000 new customers.
That said, pre-pay customer numbers fell significantly, with 187,000 jumping ship in just the last three months of 2010.
Shareholders were kept happy as a 646 million dividend was paid out to members of parent companies, Deutsche Telekom and France Telecom.
Tom Alexander, chief executive (CEO) of Everything Everywhere, remained positive, claiming 2010 had been a "year of achievement" for the merged firm.
"Despite continued regulatory and competitive pressures it has been a strong end to the year with T-Mobile showing a greatly improved performance with its strongest growth for over two years," he said.
"Our continued cost management has allowed us to invest in contract customer growth across both brands."
The chief financial officer (CFO) of Everything Everywehere, Richard Moat, last week told delegates at Mobile World Congress the merger was set to boost the UK economy thanks to a 2.5 billion investment in networks and IT.
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