O2 rings in strong results

 

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By David Neal

Posted on 26 Feb 2009 at 17:17

O2 is enjoying the benefits that come with being the iPhone's sole UK operator as its parent company Telefonica has announced strong full-year financial results.

In the UK, Telefonica announced 10 per cent sales growth, boosted by both Apple's devices - which have now reached the one million sales mark - and an impressive customer signup rate.

Telefonica's overall sales were up by 5.9 per cent to reach ?14.3 billion (£12.7 billion).

"The UK business turned in yet another outstanding performance with double digit year-on-year growth and net mobile additions in the year up 45.3 per cent reaching 1,087,866 (subscribers)," said Matthew Key, Telefonica Europe's chairman and chief executive, in a statement.

"In Q4 we added 499,000 fixed and mobile customers and ended 2008 with a total customer base approaching 22 million (including Tesco Mobile), representing growth of 7.5 per cent year-on-year."

Broadband sales also impressed, with the firm clocking up a number of new customers - taking it up to 340,000 subscribers. The company was also awarded an accolade for its fixed and mobile broadband services during the period.

O2's parent vowed to stay strong and customer focused going forward, even against the backdrop of a worsening economic climate.

Another factor in this survival will be an accommodating regulatory environment, according to Key, who asked the government to be sympathetic when drawing up telecoms regulations.

"I believe the telecoms sector can help fuel economic recovery, provided the right regulatory framework is given," he said.

"We call upon politicians, regulators and the industry to work together to ensure the regulatory clarity that will favour investments in R&D and new infrastructure."