O2 profits fall on higher costs

FIRST-quarter profits at mobile phone operator O2 Ireland fell as average customer revenues declined.

Telefónica said in its results statement that the fall was “due to lower revenues and an increase in commercial costs, mainly focused on customer acquisition”.

Chief financial officer Paul Whelan added: “O2 saw its ARPU decline in the quarter. With almost 17,000 net new customers added, however, O2 achieved its highest ever subscriber base of 1.663 million customers in the quarter.