EE reports increased loss in Q4 2012 | Mobile Networks | Mobile Entertainment

EE reports increased loss in Q4 2012

EE reports increased loss in Q4 2012
Daniel Gumble

by

Networks / EE / February 19th 2013 at 4:00PM

Operator expects to make “good progress” this year.

EE has announced its annual results, revealing a downturn in both service revenue and customer numbers.

The UK operator’s full-year earnings for 2012 reached £1.41 billion. However, after taking into account tax and depreciation (EBITDA) on its revenues of £6.65 billion, the firm was down £249 million overall.

Meanwhile, despite adding 752,000 contract customers last year, with 201,000 net contract customers added in Q4 and 250,000 in Q3, EE’s customer numbers fell by 38,000, having lost 239,000 prepay customers in Q4.

In spite of these losses, the firm was keen to point out that is well placed to make significant progress this year with the number of 4G customers set to rise, stating that it had “made progress, executing on its business strategy while maintaining commercial momentum against a backdrop of macroeconomic weakness, regulatory pressures and a highly competitive environment.”

By the end of 2012, EE’s 4G network covered 43 per cent of the UK across 18 towns and cities.

Elsewhere, 48 per cent of EE’s customer base is now made up of prepay consumers, with smartphones accounting for 94 per cent of all new connections.

EE CEO Olaf Swantee, commented: “In the past year, we delivered solid financial performance, underpinned by good progress integrating the business and success in attracting high value customers.

“At the same time, we built a strong platform for growth, launching a new company, new network, new customer brand, new retail estate and being the first to provide UK consumers and businesses with 4G mobile services alongside fibre broadband.”

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