O2 half-year results beat earnings forecasts

Mobile cell phone group O2 topped forecasts for half-year earnings per share and revenues today.

Mobile cell phone group O2 topped forecasts for half-year earnings per share and revenues today.

It said half-year earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 15 per cent to £975 million - a touch below consensus forecasts.

But revenues jumped by 12 per cent to £3.615 billion while underlying earnings per share (EPS) climbed to a higher-than-expected 5.4 pence.

This may be O2's last set of results as an independent company; Europe's sixth-largest mobile phone company has agreed to a $31 billion takeover by Spain's Telefonica.

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The company said 470,000 new customers had signed up in the second quarter in Britain and a hefty 558,000 in its key German market, beating some forecasts and helping to propel its customer base 17 per cent higher to 25.7 million.

But customer revenues, or average revenues per user (ARPU), fell by €7 quarter-on-quarter in Germany on the back of customer promotions, while ARPU in Britain was flat at £271.

O2 Ireland saw customer numbers rise by 10.2 per cent to 1.57 million, with earnings ahead 14.2 per cent at £121 million.