• TV
  • MOVIES
  • MUSIC
  • SHOWBIZ
  • SOAPS
  • GAMING
  • TECH
  • FORUMS
  • Follow
    • Follow
    • facebook
    • twitter
    • google+
    • instagram
    • youtube
Hearst Corporation
  • TV
  • MOVIES
  • MUSIC
  • SHOWBIZ
  • SOAPS
  • GAMING
  • TECH
  • FORUMS
Forums
  • Register
  • Login
  • Forums
  • Gadgets
  • Mobile Phones
O2 UK Results
<<
<
4 of 14
>>
>
Thine Wonk
28-02-2014
A lot of the growth at the moment is in the demand for mobile data services. I just thought that O2's smartphone penetration would have gone up by more than 1%, I can't believe they still have less than 1/2 their customer base on smartphones.

As far as I know O2 are the only ones to say they will put prices up every year by a fixed amount, even for people in contracts, so it'll be interesting to see if that has any effect over the next quarter or two. Although as Wavejock says they have put prices up before without issue, this time all the others have said they won't do it during the contract.

O2 are still doing well in comparison to Vodafone and EE in customer numbers.
Kierankay
28-02-2014
Originally Posted by Thine Wonk:
“they will put prices up every year by a fixed amount, even for people in contracts, so it'll be interesting to see if that has any effect over the next quarter or two.”

I don't get why everybody on this forum is raving about this increase for most people the increase will be around a £1 or if your on refresh 50p, which isn't exactly that big a deal, O2 customers are already paying a premium compared to other networks so I don't think this tiny increase will bother many.
Thine Wonk
28-02-2014
Originally Posted by Kierankay:
“I don't get why everybody on this forum is raving about this increase for most people the increase will be around a £1 or if your on refresh 50p, which isn't exactly that big a deal, O2 customers are already paying a premium compared to other networks so I don't think this tiny increase will bother many.”

That every month yes, but the thing that seemed to cause the most fuss before was that people thought it was a fixed price contract for the contract term.

Do you not remember the massive fuss when Orange put prices up, all the complaints to Ofcom, the angry tweets and posts etc. Consumers were complaining and Ofcom responded by issuing fresh guidance to networks.

http://media.ofcom.org.uk/2014/01/22...t-price-rises/

Ofcom say they will conduct mystery shops to make sure companies tell consumers about mid-contract price rises, but I think O2 are the only network planning to do this as a yearly thing now.
japaul
09-05-2014
Another quarter - another set of results (Jan-Mar 2014):
Extract



O2 UK results for the quarter ending March 2014 (2014 Jan-Mar). Comparatives are with the previous quarter (2013 Oct-Dec) and the same quarter a year ago (2013 Jan-Mar).

Mobile service revenue: £1082m (2013 Oct-Dec: £1124m, 2013 Jan-Mar: £1174m)

Mobile Customers (Total): 23.576m (2013 Dec: 23.649m, 2013 Mar: 22.910m)
Mobile Customers (Prepay): 10.557m (2013 Dec: 10.765m, 2013 Mar: 10.758m)
Mobile Customers (Contract): 13.019m (2013 Dec: 12.884m, 2013 Mar: 12.152m)

Smartphone penetration: 50% (2013 Dec: 49%, 2013 Mar: 47%)

http://www.telefonica.com/en/shareho...os14t1-eng.pdf
Thine Wonk
09-05-2014
Originally Posted by japaul:
“Another quarter - another set of results (Jan-Mar 2014):
Extract



O2 UK results for the quarter ending March 2014 (2014 Jan-Mar). Comparatives are with the previous quarter (2013 Oct-Dec) and the same quarter a year ago (2013 Jan-Mar).

Mobile service revenue: £1082m (2013 Oct-Dec: £1124m, 2013 Jan-Mar: £1174m)

Mobile Customers (Total): 23.576m (2013 Dec: 23.649m, 2013 Mar: 22.910m)
Mobile Customers (Prepay): 10.557m (2013 Dec: 10.765m, 2013 Mar: 10.758m)
Mobile Customers (Contract): 13.019m (2013 Dec: 12.884m, 2013 Mar: 12.152m)

Smartphone penetration: 50% (2013 Dec: 49%, 2013 Mar: 47%)

http://www.telefonica.com/en/shareho...os14t1-eng.pdf”

So churn up quarter on quarter, total revenue down, service revenue down 7.9%, ARPU down 10% and a net customer loss against last quarter of nearly 100,000 customers.
jabbamk1
09-05-2014
Saw this coming a mile off.
And I wouldn't be surprised if Three's growth slows to a crawl as well.

Congrats on 50% smartphone penetration to O2 though
japaul
09-05-2014
This time, O2 also gave the machine-to-machine numbers included in their totals which stood at just over 2 million (1.7m for EE). This means the total gap between O2 and EE is 2.735m if you include M2M in both (23.576m v 26.311m) or 3.038m if you exclude M2M (21.538m v 24.576m). Useful to know as historically the main headline mobile numbers for O2 always included M2M whereas EE excluded them.
qasdfdsaq
09-05-2014
Interesting... Despite being the first company to implement compulsory contract price rises they're still gaining contract customers and losing prepay ones.
Thine Wonk
09-05-2014
Originally Posted by qasdfdsaq:
“Interesting... Despite being the first company to implement compulsory contract price rises they're still gaining contract customers and losing prepay ones.”

Additions based on previous quarters are down significantly, with a net loss of customers this time around and significant revenue and APRU decline.

Not adding customers like previous quarters is a change, you can't say what that might be attributed to though, although it is possible the stance on price rises might have stifled the previous quarterly Q on Q growth.
Everything Goes
09-05-2014
Originally Posted by jabbamk1:
“Saw this coming a mile off.
And I wouldn't be surprised if Three's growth slows to a crawl as well.

Congrats on 50% smartphone penetration to O2 though ”

Its amazing it took them so long. I guess granny and grandpa are still clinging on that old Nokia

O2 have been doing well for growth in subscriber numbers until now. Lets see if it picks up at the end of the year.....
Thine Wonk
09-05-2014
Another interesting line from the results:

Personnel expenses declined 20.2% year-on-year due to the benefits of outsourcing of customer service.

You also have to wonder if this is the right decision in the long term for what is thought of as a premium brand. Customer service is one big part of what made O2 special.

What results can we expect over the next week or two? I don't think Three do quarterly, so unlikely to hear anything this quarter, but presumably Voda and EE will report in the next week or two?
japaul
09-05-2014
Originally Posted by Thine Wonk:
“What results can we expect over the next week or two? I don't think Three do quarterly, so unlikely to hear anything this quarter, but presumably Voda and EE will report in the next week or two?”

Three do sometimes do some limited quarterly updates now outside the more formal biannual reporting otherwise we will have to wait until July. Vodafone's are on 20 May. EE will be, er, last week

http://forums.digitalspy.co.uk/showt...=#post72406560
The Lord Lucan
09-05-2014
Unfortunately O2 has many business customers that do not think too much about data as long as it mostly works and they get a large discount. EE just isn't as proactive as O2 on the business front well not until very recently. They didn't have to be with the 4G lead..

O2 refresh & O2 priority has helped many a customer sign up, O2 are a great company PR & Marketing wise. However profit is down.. Not sure who is buying dumb phones on contract though. I wonder what they class as smart phones, as for a good while Blackberrys were not counted in Oranges figures as Smartphones..
Thine Wonk
10-05-2014
Originally Posted by japaul:
“Three do sometimes do some limited quarterly updates now outside the more formal biannual reporting otherwise we will have to wait until July. Vodafone's are on 20 May. EE will be, er, last week

http://forums.digitalspy.co.uk/showt...=#post72406560”

So, so far EE and O2 both down on total customer numbers then? lets see how Vodafone have done.

O2 UK had a bad set of figures with revenue down, churn up and APRU down, but it' is even worse for parent Telefonica - a further 13.5 percent drop in sales for Telefonica, profits down over 23 percent this time around.
qasdfdsaq
11-05-2014
Originally Posted by The Lord Lucan:
“Unfortunately O2 has many business customers that do not think too much about data as long as it mostly works and they get a large discount. EE just isn't as proactive as O2 on the business front well not until very recently. They didn't have to be with the 4G lead..

O2 refresh & O2 priority has helped many a customer sign up, O2 are a great company PR & Marketing wise. However profit is down.. Not sure who is buying dumb phones on contract though. I wonder what they class as smart phones, as for a good while Blackberrys were not counted in Oranges figures as Smartphones..”

As does Vodafone. As for EE they've taken after the T-Mobile side. Orange used to be well favoured among business customers, T-Mobile not so much.
davethorp
15-05-2014
Interesting in the latest results that O2 are reporting a drop in operating costs of 5.1%

This is the same network who claimed a 2.7% price rise was necessary due to an increase in costs
Thine Wonk
15-05-2014
Originally Posted by davethorp:
“Interesting in the latest results that O2 are reporting a drop in operating costs of 5.1%

This is the same network who claimed a 2.7% price rise was necessary due to an increase in costs”

They outsourced customer support which saved them 20% though In fairness. However it is questionable whether outsourcing and the controversial mid-contract price rises are a good idea seeing as revenues are down, average spend per customer is down, net customer numbers are down.
japaul
31-07-2014
O2 latest figures

O2 UK results for the quarter ending June 2014 (2014 Apr-Jun). Comparatives are with the previous quarter (2014 Jan-Mar) and the same quarter a year ago (2013 Apr-Jun).

Mobile service revenue: £1091m (2014 Jan-Mar: £1082m, 2013 Apr-Jun: £1170m)

Mobile Customers (Total): 23.767m (2014 Mar: 23.576m, 2013 Jun: 23.124m)
Mobile Customers (Prepay): 10.549m (2014 Mar: 10.557m, 2013 Jun: 10.680m)
Mobile Customers (Contract): 13.218m (2014 Mar: 13.019m, 2013 Jun: 12.444m)

Smartphone penetration: 50% (2014 Mar: 50%, 2013 Jun: 48%)

http://www.telefonica.com/en/shareho...os14t2-eng.pdf
jabbamk1
31-07-2014
I'm surprised. Wasn't expecting O2 to gain as many customers as they did.

So for H1 that puts them at +118k

Not too bad after the poor Q1 they had. Prepay seems to be recovering for all networks somewhat.
Revenue seems to be picking up as well (but still down YOY)

O2 are now quoting 43% outdoor population coverage which isn't bad at all. Just need to focus on getting it above 90% now. 4G users on O2 are on average using twice as much data as 3G users.

Thanks again Japaul.
jonmorris
31-07-2014
Once an O2 customer gets to try 4G, they probably realise you really can access the Internet from a phone after all.
Thine Wonk
31-07-2014
It isn't a bad performance, revenues are still dropping but adding 180k customers not bad at all.
japaul
31-07-2014
Originally Posted by jabbamk1:
“O2 are now quoting 43% outdoor population coverage which isn't bad at all. ”

A few pp higher than Vodafone's claim for the same period (40/41 I think).
wavejockglw
31-07-2014
Some amazing comments..... Revenues still dropping? Period on period they increased unless 1091 has become a smaller number than 1082! Faced with some very impressive results after the company making some very tough decisions like inflation based price rises the best some can come up with is saracam relating to coverage, which as we all know differs greatly from area to area and in recent tests O2 have been reported as having made some improvements. The company has continued to confound its critics and has great potential to upgrade its huge feature phone base to increase its future revenues.
plymouthbloke1974
31-07-2014
Still dropped compared to April-June lol
jonmorris
31-07-2014
When O2 and Vodafone are bottom of the table in terms of data speed, and you're rolling out a 4G network and numerous upgrades, the only way is up... but there's still a LONG way to go.

And O2 is still the network presumably for people with ancient feature phones, no doubt including very low users who don't make use of much data at all.
<<
<
4 of 14
>>
>
VIEW DESKTOP SITE TOP

JOIN US HERE

  • Facebook
  • Twitter

Hearst Corporation

Hearst Corporation

DIGITAL SPY, PART OF THE HEARST UK ENTERTAINMENT NETWORK

© 2015 Hearst Magazines UK is the trading name of the National Magazine Company Ltd, 72 Broadwick Street, London, W1F 9EP. Registered in England 112955. All rights reserved.

  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • Complaints
  • Site Map