MmO2 announce significant growth in customer numbers

MmO2 announced further, larger scale restructuring for its UK and German operations.

In the UK, BT Cellnet will cut its permanent workforce by 1,400 to 6,100 people from back office, technical and administrative functions across the business. The programme will also include the closure of about 133 of its 320 retail outlets.

At VIAG Interkom, Germany, the parent company intends to reduce its staff levels by 500 to 3,400. A number of retail outlets will also be closed.

Key performance indicators (KPI’s) indicate significant growth in customer numbers, particularly in contract customers and a number of other encouraging trends including an upward development of monthly Average Revenue Per User (ARPU) and growth in mobile data.

The restructuring plans are expected to result in exceptional costs of some €179m for the current financial year and are expected to deliver annualised cost savings of €114m.

The restructuring plans, it is hoped, will help develop resources to drive network quality, improve customer service and responsiveness and optimise cost efficiencies. Deutsche bank responded to mmO2’s KPI figures saying they were better than it had expected and the probability of a successful restructuring was increasing. MmO2, which was demerged from BT in November, has 100% ownership of mobile network operators in four countries, the UK (BT Cellnet), Germany (Viag Interkom). The Netherlands (Telfort Mobiel), and Ireland (Digifone).

Figures released by mmO2 for Digifone today highlighted an increase in consumer numbers during the three-month period to 31st December by 57,000 to 1.162 million. SMS usage has grown by 16.4% and active WAP users by 122,000 in the same period.

Digifone also indicated that their Subscriber Acquisition Costs (SAC) have continued to decline and ARPU has remained broadly unchanged on the last quarter. These figures reflect the mmO2’s strategic targeting of higher value contracts.

Chairman of mmO2, David Varney, remarked today that ‘whilst [our] markets remain highly competitive, we have made an encouraging start in implementing our strategy of focusing on operational performance, managing the business cohesively, and leading new data services’.