mmO2 has not previously reported a profit since it was spun out of British Telecom in 2001. For the year ending March 31, it posted a net profit of 166m pounds ($293.6m), up from a year-ago net loss of 10.18bn pounds ($17.94bn). The massive year-ago net loss was a result of writing 8.3bn pounds ($14.7bn) off the value of its 3G licenses.
Revenue experienced a very healthy rise, up from 4.6bn pounds ($8.16bn) to 5.6bn pounds ($9.9bn). mmO2 also reduced net debt by 183m pounds ($324m) down to 366m pounds ($648m).
The operator is ranked as Europe’s sixth largest mobile phone group, and fourth largest in the UK by customer size. Its turnaround has been due to a 14% rise in subscribers, as its total customer base increased to 20.7 million, compared to 18.2 million in fiscal 2003.
In its core UK market, mmO2’s customer base grew 10% to 13.3 million, a rise the company said was helped by its sponsorship of the World Cup-winning England Rugby Team, as well as Arsenal Football Club. In the UK, the closely watched average revenue per user figures increased 10% to 272 pounds ($481).
In Germany, its customer base grew 24% to 5.9 million, with ARPU up 8% at 366 euros ($437). In Ireland, the customer base increased 11% to 1.4 million, with ARPU at 559 euros ($668).
mmO2 also said it is considering ways of returning cash to shareholders. Chairman David Varney said the company will reveal more about how shareholders might be rewarded when it releases its interim results in November 2004. The firm could choose to begin paying shareholders a dividend or could opt for a share buyback instead.
In February this year, mmO2 rebuffed a takeover bid from Dutch operator Royal KPN NV. The two companies have been pitched as potential partners in the past.
