MmO2 Cuts Losses - Sees Data Revenues Rise

mmO2, the former BTWireless has reported that its pre-tax losses have fallen to US$1.27 billion from just over US$5 billion last year. The company also saw its subscriber base grow by 12.3% to reach 17.5 million customers. EBITDA (before exceptionals) was US$632 million, up sharply on the US$57 million from the previous year. The company expects its Germany operation to go EBITDA positive this year.

The decline in ARPU across the Group was largely halted in the second half, with blended 12-month ARPU in the fourth quarter slightly ahead of the previous quarter, in all mmO2's operating businesses. Revenue generated from data services more than doubled during the year, and accounted for 11.7% of Group service revenues. mmO2's customers sent more than 5.3 billion text messages during the year.

Peter Erskine, chief executive officer, mmO2, said: "This year, we will see a greater uptake of mobile data services as the market moves on from pushing technology to selling services that customers want. We will continue a strategy of building on our leading position in mobile data by eliminating the complexity and improving customer service.

"Underlining our strength in this area, more than half of O2 customers are now using data services, including text messaging services, mobile Internet and medium-speed data services. Revenue generated from data more than doubled during the year and accounted for 11.7% of our service revenues and 13.4% in the fourth quarter. We aim to increase this to more than 25% in 2004 and above 50% by the end of the decade."

Year-end net debt was US$900 million, compared to US$739 million at the time it was de-merged from BT.'"

Posted to the site on 29th May 2002