Press release

Quarterly KPI's (3 month period to 30 June 2005) Download PDF (194Kb)

Quarterly KPI's (3 month period to 30 June 2005) Download PDF presentation (113Kb)

Peter Erskine, Chief Executive of O2 plc, commented:
"All our mobile businesses have delivered another good quarter, driven by the continued growth of the customer base, to 24.6 million, 15.5% higher than at the same time last year. Underlying voice and data trends remain robust, although voice ARPU growth in the UK and Germany continues to be restrained by the 2004 termination rate cuts. The initial impact of our initiatives to reduce UK churn is encouraging, with short-term churn metrics improving for both our contract and pre-pay customer bases.

At the end of the first quarter we are increasingly confident that all our businesses will again deliver all their growth and margin targets in 2005/06."

Key performance indicators (KPI) for the three-month period ending 30 June 2005 (including the impact of adoption of IFRS):

Service revenue:

• O2 UK net service revenue grew by 3% year-on-year (including termination cut);
• O2 Germany service revenue grew by 24% year-on-year (at constant currency);
• O2 Ireland service revenue grew by 15% year-on-year (at constant currency).

Customer numbers:

• O2 added 646,000 customers, taking the total base to 24.6 million
• O2 UK added 232,000 customers;
• O2 Germany added 412,000 customers;

Average revenue per user (ARPU), including impact of IFRS adoption in O2 UK:

1. O2 UK blended ARPU £271 (Q4: £273; Q1 '04/'05: £269)
2. O2 Germany blended ARPU €356 (Q4: €363; Q1 '04/'05: €367)
3. O2 Ireland blended ARPU €571 (Q4: €565; Q1 '04/'05: €556)

Mobile data:

• SMS volume grew by 34% year-on-year, to 4.31 billion
• Data as a proportion of service revenue stable at 26.0%
• 34% of O2 customers used non-SMS data services.

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