Strong adj. EBITDA margin improvement: Full year adj. EBITDA improved +10.1% year-on-year (yoy) to £1,574m, a 24.3% (FY 2012: 21.5%) margin. H2 adj. EBITDA margin of 25.3% (H2 2012: 22.4%).
Excellent progress delivering post-merger synergy savings: £457m (103%) of £445m target of annual gross opex merger synergies realised through relentless focus and successful execution of network, retail and supplier optimisation programmes.
Improving commercial momentum driven by strong 4G demand: Full year service revenue stable at 0.0% yoy excluding regulatory cuts and -3.7% including regulatory impacts. Q4 service revenue +1.1% yoy excluding regulatory cuts and -1.5% including regulatory impact. High value postpaid base +756k (+5.6%) yoy. 4G customer base surpassed 2m in early January 2014.
Strengthening brand awareness and clear network leadership driving growth areas: Independent recognition as the UK’s biggest and fastest network, with 70% 4G population coverage, underpinned improved performance: in B2B, winning big UK businesses including Hoover, National Grid, Tate & Lyle Sugars and in 2014, Sky; in wholesale, secured Mobile Virtual Network Operator (MVNO) agreements with Asda, Phones 4u and Virgin Mobile; and in Fixed Broadband, grew revenues +10% yoy and customer base +4.6% yoy.
4G customer base surges 816k to c. 2m: 4G customer base grew +68% from Q3 to Q4 to reach 1.996m, with 4,100+ corporate customers, putting EE’s 4G adoption rate on par with the world’s fastest.
Successfully acquiring and retaining high value customers: 194k postpaid net adds; 58% (Q4 2012: 52%) of base now postpaid, excluding machine-to-machine (M2M), delivering 6x more ARPU than prepaid. Prepaid base reduced 543k; prepaid revenue trend in line with industry shift towards postpaid. Effectively retaining postpaid customers, with churn of 1.2%, the 11th quarter in a row at 1.2% or below.
Further data revenue growth: Data/text revenue +6ppts yoy to 56% (Q4 2012: 50%) of ARPU. Data (non-text) revenue +10ppts yoy to 44% (Q4 2012: 34%) of ARPU.
Olaf Swantee, Chief Executive Officer of EE, commented: “We successfully executed our strategy, growing our pay monthly base, delivering our targeted cost savings and achieving our best margin yet, all while cementing EE’s position as the UK’s best network for consumers and businesses alike. 2013 was the year of 4G, with two million customers enjoying the benefits of superfast connectivity on Britain’s most awarded network.”
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.
During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.
She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.