O2 experiences top and bottom-line growth for third year in a row
Telefónica UK (O2) has reported total revenue and profitability growth for the third year in a row and serves now more than 34.5 million customers.
According to its 2019 full-year results, the company saw an increase of 3.8% in total revenue amounting to £6.24 billion up from the £6.01 billion in 2018.
Profitability increased by 2.3%. The surge in revenue and profit has been driven by growing subscriber numbers which climbed to 34.5 million connections, up 5.7% year-on-year.
“Today, we are marking 18 years of serving UK customers. Our third full year of consecutive topline growth, profitability and rising customer numbers is something our teams can be proud of,” said Mark Evans (pictured), CEO, Telefónica UK.
“From the very beginning, we’ve had a relentless ambition to champion customer fairness, investing to provide the best possible experience for those using our network. But customers who aren’t with O2 are still being penalised for their loyalty to their phone networks.”
In turn, customer churn hit an all-time low falling to 1% as a result of the introduction of flexible custom plans and transparent billing. While contract net additions for the full year were 1.73 million.
Specifically, operating income before depreciation and amortisation (OIBDA) reached £1,854 million, and capital expenditure (CAPEX) was £801 million.
The news follows the announcement that Telefónica group, O2’s parent company, experienced an increase of 3.2% of the last 12 months. Looking ahead the company says that it is focusing on “sustainable and responsible growth” in 2020.