Everything Everywhere Ltd., the U.K.’s biggest mobile operator,a joint venture of France Telecom and Deutsche Telekom AG, revealed its second-quarter sales and operating profit fell as regulators cut the fees it charges rival carriers.
The company’s customer base rose 3.4% to 27.9 million in the second quarter, strengthening its position as Britain’s largest mobile operator ahead of Telefonica’s O2, Vodafone, and Hutchison Whampoa’s Three UK.
According to Chief executive Tom Alexander, the company is well on the way, confirming the company’s synergy target of at least US$5.5 billion and ambition for double-digit cash-flow growth from 2010-14.
Everything Everywhere’s second-quarter revenue was US$2.715 billion. EBITDA cut down 18% to US$481.595 million.
According to the company, both sales and EBITDA had been hurt by lower regulatory caps on mobile termination rates, the charges operators pay for call traffic across each other’s networks and the impact on its revenue was US$159.47 million.
Average monthly churn — the rate at which customers leave fell to 2.2% from 2.5%. ARPU cut down 7.7%.