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EE Q2 2015 results: Margin boost on lost costs - Venture Insights

Report Overview

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EE Q2 2015 results: Margin boost on lost costs

PublisherEnders Analysis.
Publish Date August 6, 2015
Sector Fixed Line (Internet and Voice), Mobile, Mobile and Wireless Technology, Telecom, vodafone.

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EE remains the slowest growing of the ‘big 4’ UK MNOs or the only one in decline with service revenue growth at -1.8%, a touch lower in reported terms despite a slight underlying improvement.

Adjusted EBITDA margin improved to a record 26.6%, a somewhat fortunate compromise on the loss of gross adds share since the demise of Phones 4U – and associated reduction in (expensive) third-party gross adds.

In a seasonally low broadband quarter, EE actually gained net adds share, showing resilience to heightened marketing from Sky and underscoring the merits of EE’s in-store cross-selling strategy.