EE has ended its Q2 2015 with revenue of £1.506 billion, a 0.1 percent year-on-year rise in revenue.
H1 showed a 0.5 percent year-on-year rise in operational revenue, with an adjusted EBIDTA margin of 26.6 percent.
With the company reporting a 4.4 percent decline in Q2 2013 and a 0.9% decline in Q2 2014, today’s results signalled an end to revenue declines.
The positive results were driven by a range of upturns in EE’s business. Highlights in the half-year included the launch of the EE Power Bar, wi-fi calling and the 4GEE Action Cam.
In particular, EE has capitalised on the proliferation of 4G, with 1.6 million 4G net adds, increasing its 4G base to 10.9 million. This represents a 6.7 million year-on-year increase.
Kester Mann, Principal Analyst, Operators at CCS Insight, :
"Today EE announced some impressive 2Q15 results, boosted not just by continued momentum in 4G, but also encouraging performance in fixed-line and enterprise. With 10.9 million 4G customers, EE remains the largest in-market European 4G operator and is clearly on track to pass its 14 million target at year-end.
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A particular growth business was in fixed line revenue, which rose 18 percent year-on-year. The company’s broadband base rose by 35000, which EE attributed to its cross-selling strategy and EETV.
Mann added: "The company’s strategy to use TV to drive broadband additions appears to be working. Fixed broadband net additions reached 35,000 in 2Q15, helped fixed-line revenue up 18% year-on-year, meaning EE appears to be on track to surpass 1 million fixed broadband customers by end-2015."
Mann also highlighted EE’s low cost own-brand devices, such as the Harrier, commenting:
"(EE) has seen ‘good momentum’ in own-brand devices, with a number of new tablets and smartphones recently launched with the aim to bring 4G to a wider demographic."
Bob Tarzey, Analyst and Director at Quocirca, added that enough time had now passed since the merger between T-Mobile and Orange for the benefits to be outweighing the costs:
"Whatever the expectations were of that merger, it would have taken time to consolidate and integrate. By the time you get to last year, the benefits of the merger are beginning to become apparent.
Vodafone last week saw its UK revenues flat for the quarter, falling slightly in reported terms from £1.433 billion to £1.429 billion.
