O2 impresses suitor with profits rise

Mobile phone operator O2 posted a 15% increase in half-year earnings today as it showed why it had drawn a £17.7bn (€26.2bn) takeover offer from a Spanish rival.

The former BT Cellnet business grew turnover by 12% to £3.61bn (€5.35bn) after its customer base – covering operations in the UK, Ireland and Germany – jumped by 17% to £25.7m (€28m) at the end of the September.

O2, which achieved underlying earnings of £975m (€1.44bn), is due to become part of Telefonica in the new year after the Spanish company agreed a takeover deal with the board of the UK firm last month.