O2 reports strong quarter before merger with Telefonica
I wrote two weeks ago about Telefonica’s purchase of O2. Well, O2 is going into the new union in a fairly good position. In the last quarter before the merger, they reported customer growth far ahead of last year. They added 1.75 million customers in the quarter, bringing their total subscriber base to 27.4 million. The rate of growth was 18% higher than the same quarter last year. They are trumpeting the growth of their numbers at a time when other companies aren’t growing as fast, or at all.
Net revenues for the company were up, fueled by a strong Christmas quarter and strong use of text messaging and data usage. There was a note of concern in the otherwise optimistic messaging, though. Average revenue per user fell this quarter as it has been falling over the past year. This isn’t a trend that is likely to reverse, as it is due largely to incentives that it has offered to attract new customers and retain existing customers.
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