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Old 08-11-2013, 07:08
japaul
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O2 UK results for the quarter ending September 2013 (2013 Q3). Comparatives are with the previous quarter (2013 Q2) and the same quarter a year ago (2012 Q3).

Mobile service revenue: 1168m (2013 Q2: 1170m, 2012 Q3: 1228m)

Mobile Customers (Total): 23.427m (2013 Q2: 23.124m, 2012 Q3: 22.483m)
Mobile Customers (Prepay): 10.765m (2013 Q2: 10.680m, 2012 Q3: 10.864m)
Mobile Customers (Contract): 12.662m (2013 Q2: 12.444m, 2012 Q3: 11.619m)

Smartphone penetration: 48% (2013 Q2: 48%, 2012 Q2: 44%)

http://pressoffice.telefonica.com/js...s=1&elem=20378
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Old 08-11-2013, 08:11
jabbamk1
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Good results for O2.

Dat smartphone penetration though!
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Old 08-11-2013, 08:57
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Loss of revenue but increased amount of customers. I agree though hopefully they can get above 50% by end of next year.
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Old 08-11-2013, 09:00
Thine Wonk
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Revenue down a lot there, not sure why we're comparing different quarters as a year on year, maybe that is a PR thing by O2 - I'll be more interested in what some of the decent papers like the FT say, or at least to compare the same quarter year on year.

That smartphone penetration! they have been saying 48% in press releases for ages and ages now, and it is still 48% !
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Old 08-11-2013, 09:51
japaul
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2012 Q3 is the same quarter from last year which is generally regarded as the standard comparative for revenue so that's why I include it. For customer totals, quarter on quarter changes tend to to get a lot of focus so these are important too.

I try to post exactly the same data for all networks if it's available (see previous posts) but prefer to leave any comment out of the initial posting or title so it's just the numbers from the company financial releases. The link though will take you to lots more detail if you want it. I always prefer to extract the numbers myself and form my own view on them.
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Old 08-11-2013, 10:34
Thine Wonk
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ok thanks for that. It sounds like they have grown in contract customer numbers, but still see declining revenue and still more than half of their customers using basic devices for SMS and calls, rather than applications and data use, this is no doubt the reason behind the further revenue drop.
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Old 08-11-2013, 11:01
japaul
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In pure revenue terms compared with a year ago they are still taking a hit from regulation changes e.g. termination rates and roaming. Customer totals are I think are pretty good though - now less than 1.7m behind EE.

No word on 4G numbers although they did say that 4G coverage was 25%.
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Old 08-11-2013, 11:12
mogzyboy
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Ouch at that smartphone penetration percentage...

I suppose if they keep adding customers despite the appalling outages then it's not all bad, and they can justify not doing anything about it!
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Old 08-11-2013, 11:33
Everything Goes
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Smartphone penetration over all has slowed down. With O2 however it barely got going at all

http://www.marketingcharts.com/wp/in...r2013-jun2013/
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Old 08-11-2013, 11:43
jabbamk1
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2012 Q3 is the same quarter from last year which is generally regarded as the standard comparative for revenue so that's why I include it. For customer totals, quarter on quarter changes tend to to get a lot of focus so these are important too.

I try to post exactly the same data for all networks if it's available (see previous posts) but prefer to leave any comment out of the initial posting or title so it's just the numbers from the company financial releases. The link though will take you to lots more detail if you want it. I always prefer to extract the numbers myself and form my own view on them.
I agree 100%. Using the quarter from last year as a base is pretty standard. Its good to use that to compare. Its not always the best thing to compare to the last quarter.

Plus I appreciate Japauls contribution here. Its always very well written and concise.
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Old 08-11-2013, 15:50
Kierankay
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They really need to try and increase smart phone users.
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Old 08-11-2013, 23:11
jabbamk1
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So did O2 release nothing about 4G at all?

That's odd. Maybe the uptake was less than they expected.
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Old 09-11-2013, 10:28
japaul
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A few general statements like 'encouraging signs' etc but no specific numbers other than the coverage number I mentioned above.

Hard to read. On one hand this is Telefonica's group report for all their units and they have to report a consistent set of KPIs across all of them so just adding something for the UK without then doing it for other units that have 4G is unlikely. However if you have a number you are specifically proud of, it's often dropped into a presentation slide or separately mentioned by the local operating business. Vodafone's numbers are out next week so again it's not something the Group can include for just one business in it's standard reported KPIs but they could mention a figure separately to these. They've already said they've passed 100k but this was for a point in time after 30 September which is what they will be reporting next week.
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Old 09-11-2013, 15:01
qasdfdsaq
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So did O2 release nothing about 4G at all?

That's odd. Maybe the uptake was less than they expected.
Not at all odd.

4G had barely been available for one third of the measurement period.

EE didn't even release customer numbers till half a year after launch.
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Old 09-11-2013, 19:06
jabbamk1
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Not at all odd.

4G had barely been available for one third of the measurement period.

EE didn't even release customer numbers till half a year after launch.
Vodafone have released quite a bit of info about their 4G uptake and other stuff.
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Old 27-02-2014, 07:03
japaul
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Latest O2 update for the final quarter of 2013:

O2 UK results for the quarter ending December 2013 (2013 Oct-Dec). Comparatives are with the previous quarter (2013 Jul-Sep) and the same quarter a year ago (2012 Oct-Dec).

Mobile service revenue: 1124m (2013 Jul-Sep: 1168m, 2012 Oct-Dec: 1197m)

Mobile Customers (Total): 23.649m (2013 Sep: 23.427m, 2012 Dec: 22.864m)
Mobile Customers (Prepay): 10.765m (2013 Sep: 10.765m, 2012 Dec: 10.963m)
Mobile Customers (Contract): 12.884m (2013 Sep: 12.662m, 2012 Dec: 11.901m)

Smartphone penetration: 49% (2013 Sep: 48%, 2012 Dec: 45%)

http://www.telefonica.com/en/shareho...ados2013.shtml
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Old 27-02-2014, 07:10
davethorp
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1st quarter of 2014 is going to be interesting given people are leaving in droves due to the price rises
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Old 27-02-2014, 07:38
wavejockglw
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1st quarter of 2014 is going to be interesting given people are leaving in droves due to the price rises
Really? Prices have risen previously and it has not affected the growth in subscribers.

Overall they seem to be doing quite well attracting an additional 200,000+ contract customers in such a fiercely competitive market although their revenues look squeezed.
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Old 27-02-2014, 07:50
jabbamk1
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Thanks again Japaul, really appreciate the time and effort.

Not bad for Q4, Revenue decreasing due to a number of reasons despite growth. Guess that's why o2 are doing the rpi increase every year.
But customer numbers are growing. Beat my estimate of 725k, although I did originally go with 750k which was closer.

Total customer increase/decrease YOY (2012-2013)

EE: -1374k
Voda: -176k
O2: +785k

Again though! Just look at that smartphone penetration. I'm guessing 4G customer numbers must have been low last year hence the lack of mentions, and that smartphone penetration goes some way to backing that up.
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Old 27-02-2014, 08:12
davethorp
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Really? Prices have risen previously and it has not affected the growth in subscribers.
Compulsory price rises haven't been written into the terms and conditions before. It's affecting new sign ups as well as I've heard of a few people who have cancelled signing up once the sales person has told them their bill will be rising in March.

You only needed to take a glance at O2's forums and social networking channels once the announcement was made to get a taste for customer feeling on this. I myself have already cancelled 2 lines with O2 (which will be in the Q1 2014 figures). A 3rd will be cancelled in April

I've moved to a network which has said they won't rise prices. As have many others from what I've seen on O2's forums
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Old 27-02-2014, 08:16
jabbamk1
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Compulsory price rises haven't been written into the terms and conditions before. It's affecting new sign ups as well as I've heard of a few people who have cancelled signing up once the sales person has told them their bill will be rising in March.

You only needed to take a glance at O2's forums and social networking channels once the announcement was made to get a taste for customer feeling on this. I myself have already cancelled 2 lines with O2 (which will be in the Q1 2014 figures). A 3rd will be cancelled in April

I've moved to a network which has said they won't rise prices. As have many others from what I've seen on O2's forums
What you see online and what actually happens with all customers is a different story.

I'm generalising here but people posting that online are very clued up and genuinely plan to leave o2. However its a small minority. Most people will stay with o2 but no one is going to go post that online. I'm not saying that o2 are going to grow at the same rate as this year, I am expecting there to be a decline in growth. But I doubt there will be a mass Exodus.

Maybe complaints will go up, maybe growth will decline, but I don't see o2's next results being disastrous.
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Old 27-02-2014, 09:58
Everything Goes
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O2 smartphone penetration is grinding to a halt. As for the price increase issue this will take time to have an effect. Still they are adding customers even pay as you go has stayed the same unlike other networks. Three and O2 seem to be gaining customers from EE and Vodafone.
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Old 27-02-2014, 10:11
japaul
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Thanks again Japaul, really appreciate the time and effort.

Not bad for Q4, Revenue decreasing due to a number of reasons despite growth. Guess that's why o2 are doing the rpi increase every year.
But customer numbers are growing. Beat my estimate of 725k, although I did originally go with 750k which was closer.

Total customer increase/decrease YOY (2012-2013)

EE: -1374k
Voda: -176k
O2: +785k

Again though! Just look at that smartphone penetration. I'm guessing 4G customer numbers must have been low last year hence the lack of mentions, and that smartphone penetration goes some way to backing that up.
As you say, no 4G customer totals, only a coverage figure (38% outdoor with a target of >60% by the end of the year).

I think the service revenue fall probably looks worse than it is. Whilst they are hit by regulation (termination rates, roaming) like the others, in O2's case the way Refresh is accounted for also hits service revenue as you get higher handset revenues initially but lower service revenues.

My estimate was +700k so technically you win but after a stewards enquiry you lose due to changing your mind.

Where I went wrong and what surprises me is how they hang on to their PAYG base. No net change at all in the quarter and less than 200k drop YoY. They now have more PAYG customers than EE. I guess this big PAYG proportion has something to do with the low smartphone figure. They could raise it just by shedding a load of PAYG customers!
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Old 27-02-2014, 10:19
joeluken
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Where I went wrong and what surprises me is how they hang on to their PAYG base. No net change at all in the quarter and less than 200k drop YoY. They now have more PAYG customers than EE. I guess this big PAYG proportion has something to do with the low smartphone figure. They could raise it just by shedding a load of PAYG customers!
Does the Telefonica UK number include all UK brands such as giffgaff ?
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Old 27-02-2014, 10:22
japaul
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Does the Telefonica UK number include all UK brands such as giffgaff ?
No, they or any MVNOs are not included in the totals.
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