Three reports strong revenue growth for half-year but CAPEX losses continue to accrue

Three UK spent £17 million more than it earned after covering operating costs and investments,according to half-year figures for 2024.

This is an improvement from the £112 million shortfall in early 2023. However revenue climbed nine per cent to £1.335 billion, up from £1.227 billion in the same period last year. The increase was driven by a six per cent rise in net customer revenue and a 10 per cent boost in handset sales, bolstered by growth in key customer segments including the MVNMO SMARTY, B2B, and 5G Home Broadband.

Operating expenses rose by five per cent to £548 million, due to to network expansion and inflation. EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) increased 31 per cent increase to £213 million, up from £163 million last year.

Three UK continues to face financial difficulties, reporting an Earnings Before Interest and Taxes of £30 million, though this is better than £76 million loss recorded in the same period last year.

The active customer base grew by three per cent, adding 352,000 new customers to reach a total of 10.9 million. Contract customers increased by five cent to 9.2 million, driven by gains in the B2B, 5G Home Broadband, and SMARTY segments, which offset declines in core business areas.

More than 900 sites were upgraded and 3,000 miles of fibre were replaced. Another 311 new sites were added under the UK’s Shared Rural Network program, with 269 of these sites now live.

Data usage per customer was up 24 per cent increase, averaging 30.5GB per month. Three UK expanded its 5G network to 4,900 sites across 656 towns and cities, achieving 62% population coverage. The company also launched network services in London Underground stations, bringing connectivity to key stations including Paddington and Canary Wharf.

CEO Robert Finnegan, highlighted the ongoing financial challenges due to rising operational costs and sustained negative cashflows since 2020.

“UK mobile networks rank 22nd out of 25 in Europe for 5G speeds and availability. The market structure prevents us from investing sustainably to address this issue. Our merger with Vodafone will unlock £11 billion for digital infrastructure, creating a world-class 5G network and driving economic growth in the UK”.