mmO2 Increases Revenues

mmO2 reports strong first half

November 17, 2004

1 Min Read

LONDON -- For mmO2:

  • Strong first-half performance delivered across the Group(1):

    • Customer base grew 15% to 22.0 million (2003 : 19.2 million);

    • Group turnover grew 23% to £3,285 million (2003 : £2,680 million);

    • EBITDA grew 37% to £851 million (2003 : £621 million);

    • Group operating profit increased to £251 million (2003 : £66 million);

  • Basic earnings per share increased to 2.7 pence (2003 : 0.3 pence)

  • Underlying earnings per share(2) increased to 4.5 pence (2003 : 1.5 pence)

  • Group net debt reduced by £130 million during first half, to £236 million.

  • O2 UK full-year net service revenue growth now expected to be 12 - 15%.

  • Increased network investment in Germany of €1.0 - €1.5 billion over 5 years

  • New policy of regular, sustainable dividends based on underlying EPS

    • Final dividend expected to be declared in May 2005 and paid in August 2005

    • Medium term target payout ratio 50%

  • Corporate reorganisation to create distributable reserves before end FY 05

    David Arculus, Chairman of mmO2 plc, commented:

    "In the first half mmO2 delivered another good performance, with strong revenue and EBITDA growth. Over the past three years there has been a transformation in the Group's operational and financial performance, and we are very pleased now to be able to establish a policy of sustainable dividends, earlier than originally expected. The Group has delivered earnings growth and positive cash-flow, and we believe strongly that shareholders should benefit directly from this. The new policy reflects our confidence in the company's future prospects, and our commitment to deliver returns for shareholders."

    mmO2 plc

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