Irish O2 customers outspend European counterparts

O2 Ireland customers spent on average €542 each on mobile phone services every year, significantly more than the firm's other subsidiary operations in Europe, writes Jamie Smyth

This high average revenue figure per user, which was disclosed yesterday, helped the firm to increase operating profit to €62 million in the six months to September 30th last, up from €47 million during the first half 2001.

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O2 Ireland said it added 37,000 subscribers in the second quarter bringing its customer base to 1.2 million subscribers, of whom 70 per cent were pre-pay users. This rise in subscribers reflects existing OO2 users upgrading to new handsets as well as new customers.

The strong average revenue per user figures and rise in subscribers helped the firm increase total revenues by 11.4 per cent to €340 million in the six months to September 30th, 2002. Earnings before interest, tax, depreciation and amortisation during the same period was €114 million, 22.5 per cent higher than the previous year.

A breakdown of the average revenue per user figures across O

O2 European operations shows Irish consumers spend considerably more on mobile services than the firm's European subscribers.

The annual mobile phone bill for the average Irish user is €542 compared with just €371 in Britain and €329 in Germany. O

O2 Ireland's extremely high average revenue per user figure places it above Vodafone Ireland which last week disclosed that its users spend €532 per year on average.

Ms Danuta Grey, managing director of O

O2 Ireland, denied that the average revenue per user figures meant prices here were high. She said it reflected the fact that Irish people used their mobiles more. Research shows Irish users spend 200 minutes a month using mobiles compared to 138 minutes for British users, she added.

Ms Grey said the firm was always looking at its tariff plan to meet the needs of its customers.

The strong results at O

O2 Ireland were mirrored by its parent group Britain's mmO2, which beat forecasts with a jump in first-half core earnings as it saw its comparatively small German unit turn an underlying profit for the first time.

The group reported a 180 per cent rise in earnings before interest, tax, depreciation, amortisation and exceptionals to #378 million sterling in the half, as well as lower debt and a #72 million cash inflow. Revenue grew to #2.341 billion from #2.1 billion last year, and the proportion of high-margin data revenues rose to 15.6 per cent in the second quarter from 10.9 per cent last year.