Telefonica O2 grows post-pay market

13 May 2009

Telefonica’s O2 operations in Ireland reported that its total subscriber base grew 3pc year on year to 1.7 million subscribers. The company said pre-pay subscribers had fallen by 25,000, while its post-pay subscriber base grew by 8,069 net additions.

Monthly blended ARPU (average revenue per user) for the quarter was €39.30, down 9.3pc on €43.35 last year.

Service revenue was €210m for the quarter, down from €227m in the previous quarter and down 5.6pc year-on-year.

There was a 71pc increase in text usage, up from 439 million texts a year ago to 750 million in Q1.

Data revenue as a percentage of overall service revenue grew during the quarter, driven by growth in non-SMS revenues, which now account for 10.3pc of overall service revenues. A key driver of this growth was mobile broadband, with customer numbers now at 105,305 to date.

“While the trading environment in the first quarter of 2009 was very difficult, O2 continued to make progress in the market, in particular in post-pay and mobile broadband,” explained Paul Whelan (pictured), chief financial officer at Telefónica O2 Ireland.

“The impact of the tougher economic conditions is being acutely felt by our customers, and in response to their changing needs and their requirements for greater flexibility and control over costs, we continue to offer innovative products and value for money price plans.

“As with all businesses, we also continue to sharpen our emphasis on cost management and improving cash flow within our business,” Whelan added.

By John Kennedy

Pictured: Paul Whelan, chief financial officer, Telefónica O2 Ireland