(£m)
Revenue 1,055
Operating costs 794
EBITDA 261
Depreciation & amortisation 176
Operating profit 85
Capital expenditure 111
Operating cash flow 310
Revenue for the two months since we acquired EE was £1,055m. This consists of mobile service revenue of £913m, fixed and wholesale revenue of £89m and equipment sales of £53m. Of total revenue, £1,038m was external and £17m was internal.
Monthly mobile ARPUs in the period were £26.7 for postpaid customers, £3.9 for prepaid and £18.6 on a combined basis. At the end of the period the total customer base was 30.6m (excluding BT Mobile customers) .EE added 54,000 postpaid mobile
customers in the two months, taking the postpaid customer base to 15.4m. We signed a number of significant corporate customers including Arriva Trains, and we began connecting users under our Anglian Water and Prudential contracts. The number of prepaid customers reduced by 426,000 taking the base to 8.3m, with a seasonal drop following Christmas trading, faster migrations to postpaid and greater price competition from the MVNO market. The 4G customer base reached 15.1m. The MVNO base and machine to machine bases increased by 28,000 and 77,000 over the two months to 3.7m and 2.3m respectively. EE added 11,000 broadband customerstaking the base to 951,000 and customers choosing to take fibre broadband grew by 10,000. Postpaid churn was 1.1% reflecting the high level of customer loyalty.
We were again recognised as the leading UK mobile network, with Rootmetrics naming EE as having the best overall mobile network. We also won the Speedtest fastest mobile network award in the period. We’re making good progress with extending our network, with 4G calling now available in Bristol, Hatfield, Birmingham, Manchester, Edinburgh and Belfast.
On 25 April we announced plans for 100% of customer service calls to be handled in the UK and Ireland by the end of 2016. We also announced plans to extend our 4G geographic coverage to 95% of the UK by 2020, from 60% today, significantly increasing the availability of 4G in even the most remote locations.
Operating costs were £794m (of which £69m were internal charges from other parts of the group) resulting in EBITDA of £261m, an EBITDA margin of 25%.
Capital expenditure was £111m as we extended 4G coverage to over 96% of the UK population. Preparation for the Emergency Services Network contract continued in line with agreed milestones. Operating cash flow of £310m (which excludes interest or tax) benefited from working capital movements.