Orange financial results indicates 770,000 broadband customers
The combined companies of T-Mobile and Orange, now part of Everything Everywhere, have released financial results for the nine months ending December 31st 2010, their first annual financial results as a combined company. The main headlines from this in terms of broadband were that Orange home broadband has seen a slow down in the erosion of the fixed-line broadband customer base. This is obviously good news as Orange have been on a steady decline over the last couple of years. Comparing to the end of 2009 (896,000), Orange have lost 126,000 fixed line customers, ending 2010 on 770,000. The company expect to be in customer growth in this sector in mid-2011.
Orange of course made a big step in April 2010, announcing that they would be outsourcing their broadband provision to BT, a move which they hoped would help them turn around the broadband side of the business. It will take time for this work to come to fruition, and for customers to see an improved service.
The mobile side of the business has remained strong which has given the company a revenue growth of 1.5% year on year, excluding regulatory impact. Contract mobile customers have seen sustained growth with Q4 figures showing net additions up 12.4% compared with 2009, bringing in 300,000 customers. Retention rates have also improved, with monthly churn down to 1.3%.
"2010 has been a year of achievement for Everything Everywhere. We continued the rapid integration of the new company, completing a companywide restructuring and maintained good commercial momentum throughout, with improved retention and growth on our contract customer base.
Despite continued regulatory and competitive pressures it has been a strong end to the year with T-Mobile showing a greatly improved performance with its strongest growth for over 2 years. Our continued cost management has allowed us to invest in contract customer growth across both brands.
The strategy for T-Mobile was to focus on costs and profitability, in contrast to Orange's customer growth strategy; these strategies are now aligned, with a continued focus on costs coupled with a drive to invest in contract customer growth on both brands, as evidenced by the performance in the fourth quarter."Tom Alexander, (CEO) Everything Everywhere