Increased subscribers but declining ARPU for O2

13 Nov 2006

O2 Ireland said today that its customer base at the end of September stood at 1.6 million subscribers, up 2.1pc from the same period last year.

For its third quarter, O2 said that average revenue per user (ARPU) for prepay customers was down from €31 last year to €29 this year.

ARPU for post-pay customers was also down to €83 from €88 last year.

The company reported that average monthly minutes in use for the quarter increased to 241, up 9pc on the same period last year.

The company attributed this to the success of its 1c weekend promotions as well as post-paid customers buying bundled minute packages.

Service revenues at the operator declined by 1.7pc year on year. However, data revenue as a percentage of overall service revenue was 21.9pc, up from 21.2pc last year.

Some 397 million text messages were sent during the third quarter, representing a 9.7pc increase in text usage on last year’s 362 million.

“In what is a very competitive market we are pleased with our performance this quarter,” said Paul Whelan, O2 Ireland’s chief financial officer. “In line with our strategy we have seen a significant increase in our post-pay base, up by over 16,000 customers in the quarter and 60,000 year on year.

“This has been driven by gains in the Corporate and SME [small and medium-sized enterprise] sectors and achieved through a combination of well-thought out initiatives, including a compelling range of products and services and the value for money we are providing,” Whelan said.

By John Kennedy