Business Irish

Sunday 22 April 2018

O2's sales slump by 9pc to €193m

John Mulligan

O2's revenue from telecoms services fell nearly 9pc year-on-year, to €193m in the last quarter, as consumers spent less.

Releasing figures for the three months to the end of June yesterday Telefonica-owned O2 said that in Ireland its blended average monthly revenue per pre-pay and contract user fell 6pc to €37.14. The monthly average revenue per contract user slumped nearly 13pc to €55.46 while, among pre-pay users, the number was down slightly more than 2pc at €24.33.

Paul Whelan, chief financial officer of O2 Ireland, said Ireland's trading environment remained "very challenging" in the last quarter.

"In line with industry trends, we continue to see downward pressure on revenues as customers change their usage patterns and look for greater flexibility and control over their costs," he added.

O2 Ireland has an active policy of trying to migrate pre-pay customers to contracts and said that, as a result, it has experienced its lowest churn rate in two years, at 2.3pc in the first six months of the year. Contract customers now account for 42pc of its total in Ireland.

O2 Ireland is the second largest mobile telecoms operator here, after Vodafone.

The operator has 146,000 mobile broadband subscribers.

Irish Independent

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