Saturday 25 November 2017

O2's revenues in Ireland post 5.3pc fall

Outgoing 02 chief executive Danuta Gray
Outgoing 02 chief executive Danuta Gray
John Mulligan

John Mulligan

Mobile operator O2, which is owned by Spain's Telefonica group, said its service revenue in Ireland fell 7pc to €198m in the third quarter, while in the nine months to the end of September total revenues declined 5.3pc to €641m.

The fall was mainly caused by decreased roaming revenue, mobile termination rate cuts and changed usage patterns. Mobile service revenue, which excludes revenue from retail outlets, fell 7.4pc to €587m for the first nine months.

But the provider managed to hold its subscriber base steady amid stiff competition, adding 5,400 customers in the third quarter to bring its total numbers to 1.7 million at the end of September, confirming its position as the country's second-biggest provider.

Average monthly blended revenue per user (which includes pre-pay and bill-pay customers) fell to €37.14 in the first nine months from €39.67 a year ago. Pre-pay ARPU in the first nine months was down to €24.32 from €25.15, while for bill-pay subscribers it was down to €55.33 from €63.03.

Operating income before depreciation and amortisation fell 10.1pc year-on-year to €201m in the first nine months of the year, partially hit by a €10m in restructuring charges during the period.

O2 Ireland chief executive Danuta Gray recently announced her decision to step down from the position after nine years in the role. She'll be non-executive chairman of the Telefonica subsidiary and will also have an advisory role with Telefonica Europe.

O2 Ireland has 160,000 mobile broadband subscribers, the highest ever number reached by the telco, while data revenue as a percentage of revenue continues to grow, accounting for 12.4pc of overall service revenue in the third quarter, up from 10.4pc in the third quarter last year. Chief financial officer Paul Whelan said the increasing use of data was reflective of more smartphone penetration.

On a group basis, Telefonica more than doubled its net profit in the third quarter to €5.06bn on the back of a stronger performance in Latin America.

Irish Independent

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