Everything Everywhere, the entity formed by the merging of France Telecom’s Orange and Deutsche Telekom’s T-Mobile, yesterday reported weak results for the last quarter.
Its revenue dropped two per cent in the nine months from April last year – when the merger went through – from £5.4bn to £5.3bn. Underlying profit was £1bn, down from £1.1bn.
It saw its mobile service revenues grow 1.3 per cent in the quarter. However, it lagged behind Vodafone, which saw mobile service revenues jump seven per cent in the same period. O2 is also expected to show it grew at a faster rate when it reports its fourth quarter results on Friday.
Sources close to the firm said Everything Everywhere has invested heavily in bringing customers from pay as you go packages to contracts.
It added 300,000 contract customers in the fourth quarter but lost out on 187,000 pay as you go users, leaving net adds of 113,000 compared to 195,000 at Vodafone. The group said it was on track to deliver £3.5bn of planned savings by 2014.