O2 Q1 revenues up 5.3pc to £1.47bn

O2 unveils investment plans for high footfall stadiums and hotels

O2 has posted a year-on-year increase pf 5.3 per cent to £1.47 billion for Q1 of 2019.

Operating profit before depreciation and amortisation rose 3.4 per cent to £440m.

Overall customer base including MVNOs grew 2.3 per cent year-on-year to 32.7 million which makes Telefonica the UK’s largest network operator, while O2’s mobile base stands at 25.1 million.

Around 13,000 contracts were added for the quarter, 2020,000 including M2M. Contract customer base now account for 66 per cent of total mobile base.

O2 spent £162 million in investments throughout the quarter. O2 maintains its investment of more than £2m a day in its network as it prepares for the rollout of 5G

The update came as O2 announces fresh investment plans to spur network connections in public spaces such as stadiums, shopping centres, hotels and conference centres.

The operator has partnered with Wireless Infrastructure Group and has already installed equipment in Liverpool’s Anfield Stadium and Lord’s Cricket Ground.

Fresh infrastructure will also be rolled out in the Savoy and Neds hotels as well as King’s Cross, Canary Wharf and City skyscraper the Cheesegrater.

The operator previously announced it will launch the high-speed network in London, Belfast, Cardiff and Edinburgh by the end of the year. Customer can connect to O2’s 5G network with the Samsung Galaxy S10 5G smartphone.

O2 CEO Mark Evans said: “This is another good set of results building on our momentum from 2018. We have delivered further revenue and customer growth underpinned by our award-winning network and market-leading loyalty.”

PP Foresight analyst Paolo Pescatore added: “The network investment is good for its customers and the UK but feels forced upon to keep up with rivals in the race to launch 5G.”

He warned the company should take a “prudent approach” towards its 5G rollout later in the year.