02 profits up on the back of customer gains, higher usage

PROFITS at mobile phone operator O2 grew by 14% in the past year on the back of customer gains and higher usage.

The company said that operating profits grew by 14% to €232 million in the year to end March as its customer base jumped by 10% to just over 1.5 million subscribers. Earnings before interest, tax, depreciation and amortisation of goodwill was up 9% to €329m.

Turnover the for the year grew by 13% to €859m, with just over a fifth of this figure coming from data services like text messaging.

During the year the company spent €145 million upgrading its network and preparing for the launch of so-called third generation mobile phone services. Customers can also expect to see the launch of i-mode, an advance mobile internet service later this year.

Mr Whelan said O2 had held discussions with a number of companies looking to piggyback on its network and offer mobile services but would not conclude any deal unless it made business sense.

The company has opposed plans by the telecoms regulator ComReg to force the three operators to open in a bid to create more competition.

The O2 group with 23.96 million customers, said earnings before interest, tax, depreciation and amortisation rose to €2.5 billion, 18.4% higher revenues of €9.6bn.

The company also paid shareholders its first dividend since floating on the stock market four years ago. Shareholders will receive 2.25 pence per share.