Feeds

mmO2 looks set for first ever dividend

Earlier than expected

  • alert
  • submit to reddit

High performance access to file storage

mmO2 is to pay its maiden dividend earlier than expected after a strong performance in the first half of 2004.

The UK-based mobile operator, which reported its half-yearly results today, has grown group revenues by 23 per cent for the six months ending 30 September to £3.285bn, compared to £2.680bn a year earlier.

The rise was due primarily to strong customer growth and higher ARPU (Average Revenue Per User) across the company's three mobile operating businesses in the UK, Germany and Ireland.

Net income shot up to £236m, or £0.027 per share, from £23m, or £0.003 in 2003. Group operating profit was also up on last year, from £66m in the first half of 2003 to £251m in 2004.

From the beginning of the 2005 fiscal year, mm02 intends to pay an interim dividend in January 2005 and a final dividend in August. The final payment will be two-thirds of the total sum.

"The new policy reflects our confidence in the company's future prospects, and our commitment to deliver returns for shareholders," said David Arculus, chairman of mmO2.

The group's three markets showed good individual performances.

Both the UK and German markets added significantly to their customer numbers during the first half of the year. UK subscribers came to 13.86 million, up 10 per cent on the previous year; and Germany had a busy first half, adding 27 per cent more customers to create a base of 6.67 million.

Turnover in these markets was also impressive; the UK posted revenue of £2.037bn, up from £1.651bn, while German revenues amounted to £877m from £719m.

O2 Ireland posted revenue of £280m, up from £260m a year earlier. Operating profit before goodwill and exceptionals grew 10 per cent to £74m.

The main growth driver in Ireland was new customer acquisition, with customer figures growing by 12 per cent year-on-year to 1.425 million, of which 27.6 per cent were contract customers. The all-important blended ARPU figure grew 1.6 per cent, to €560, driven by both voice and data, with average minutes of use per customer increasing to 203 per month, from 192 last year. Data ARPU was also up eight per cent to €119

mmO2 forecasts continuing revenue growth across its three markets for the remainder of its fiscal 2004 year.

© ENN

Related stories

mmO2 eyes German i-mode service
mmO2 ups sales forecasts
mmO2 hunts prepaids with German coffee chain

High performance access to file storage

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
Skype pimps pro-level broadcast service
Playing Cat and Mouse with the media
Beat it, freetards! Dyn to shut down no-cost dynamic DNS next month
... but don't worry, charter members, you're still in 'for life'
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.