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EE Q1 2015 results: Strong metrics, weaker revenue growth - Venture Insights

Report Overview

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EE Q1 2015 results: Strong metrics, weaker revenue growth

PublisherEnders Analysis.
Publish Date May 6, 2015
Sector Mobile, Telecom.
Company EE.

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EE reported improved mobile service revenue growth in Q1 but it is still shrinking at -1.7%; a disappointing performance now that all of its competitors have moved back into growth.

The main causes of its underperformance appear to be the impact of the gradual retirement of the Orange and T-Mobile brands, and the loss of sales from Phones 4U which closed last year, with differentiation through superior 4G not (yet) able to make up for these factors.

EE’s fixed line business was the star of the quarter with 50k customers added and 15% revenue growth. It seems to have cracked the formula of cross-selling broadband into its mobile base, a useful skill in the current market context.