O2 News Update: Most Valuable Customer Base

O2 News Update: O2’s UK CEO Ronan Dunne has announced that they have the most valuable customer base in the market, due to their lowest churn rate ever.

O2’s latest figures are currently showing the companies lowest churn hit on record after its latest quarterly, whereas contract additions rose to a three year high. The claim was made by O2 UK CEO Ronan Dunne following the operators second quarterly’s financial results that were announced to the public last month on July 25^th

These results show that O2 added a staggering 292,000 contract customers up by 16 percent from a year earlier, which is 41,000 more than they added during their first quarterly of this year. This is the sixth consecutive quarterly that O2 have managed to add more than 200,000 to their growing amount of contract subscribers in a three month period. This exponential growth means O2 now have 12.4 million in their contract base which is currently growing by 9 percent each year. On the other hand contract churn fell below the 1% mark to 0.9% this now means that again they have improved upon their first quarterly as the churn has dropped again by 0.1 percent. This result is better than some of the other major competitors such as EE who’s churn rate was at 1.2% in the second quarterly and Three’s was 1.6% in the first half of the year. This huge increase in customers has inevitably created an increase in profit. O2’s profit increased by 9.2 percent annually to £357 million with revenues improving by 4.3% to £1.38 billion.  

Prepay numbers, which account for 46% of the firm’s 23.1 million customers, fell by 78,000, Vodafone and EE, saw numbers fall massively by 102,000 and 671,000 within the second quarterly. Dunne is convinced the persistence in offering the same value on prepay as contract has enabled it to slow the markets decreasing trend. He feels recent success of the company could be down to loyalty schemes that O2 provide for customers such as ‘Priority Moments’, free WiFi and ticket offers at the arena. These schemes help to give the customers the ‘overall wrap’ of ‘value and membership’ with O2. One of the most successful propositions is the O2 refresh plan; Dunne claims this recent plan has allowed them to be ‘disruptive’ in the marketplace. This new plan which has been launched within all stores allows at any point for a Customer on a 24 month contract to upgrade their phone, more than 80% of customers who regularly upgrade now take part in the scheme.