Three have announced their H1 2018 results and there is some key information to be taken out from them, even if you do not want to read all of the press release below.
The customer base has increased to 10.1m customers thanks to some great offers and partnerships. They have added services such as GoBinge and Wuntu which have brought people on board.
Average data use per customer has gone up 10% from 6.9GB per month to 7.6GB per month, again with services such as GoBinge. This has allowed customers to use data to watch TV shows and listen to music without worrying about it impacting their allowances. An average customer on Three uses 3.5x data than the industry average.
When it comes to the exciting 5G future, things are really underway to ensure a leading position in the market. They have a strong spectrum which will give customers the best experience possible. Three also secured an additional 20MHz of 5G spectrum from the auction earlier in the year, this on top of their 124MHz acquired from the purchase of UK Broadband a while back.
This total spectrum holding is now three times that of what the next best network has to offer. It should ensure Three have a great start with 5G, delivering headline speeds and capacity when they launch sometime around 2020.
Huawei have been confirmed as the 5G RAN vendor, which now means full steam ahead in preparing for testing. This will happen in the next 6 months or so.
There are a lot more facts and figures to go through below if you want to know more.
Three UK reports H1 18 results
Continued investment for 5G leadership
Three UK today announces its half-year results for the first six months of 2018. All comparisons are year on year unless otherwise stated.
Operational highlights:
- 6% growth of the active contract customer base; total customer base now 10.1 million
- Contract handset churn at lowest ever level of 1%, a 9% improvement
- Usage per customer of 7.6GB per month, up 10% from 6.9GB
- 84% of customer base using 4G and 75% of data usage on 4G network
- Market-leading Net Promoter Score maintained at +13
- Significant developments in wholesale division with the launch of Superdrug Mobile and continued growth of iD Mobile.
Financial highlights:
- Revenue of £1.19 billion, up 2%
- Customer service margin of £729 million, up 1%
- EBITDA of £364 million, up 7%
- Contract AMPU of £15.34, down 7%
OPERATIONAL DEVELOPMENTS
Strengthening and broadening the customer base
- We continued to deliver on our multi-brand approach
- We launched a new SME business offering
- With our focus on providing the best customer service, 99% of all contract sales are now coming through direct channels.
- Churn has improved to its lowest ever rate, reflecting our growing, engaged and high-quality customer base.
- Three received less than the average number of complaints, across UK mobile network operators, according to Ofcom[1]
,
Market-leading connectivity: developments on the road to 5G
- We secured 20MHz at auction to add to the UK’s leading 5G spectrum portfolio
- We signed an agreement with SSE to unbundle BT local telephone exchanges to facilitate fibre optic connections of masts to datacentres.
- The deal will allow Three UK customers to consume more data than ever.
- We are the first UK network to stop selling 3G-only handsets
- New contract signed with Huawei for 5G network roll-out
- 5G trials are set to begin within the next six months
Strategic developments
Network and IT transformation
- CAPEX of £125 million during the period excluding spectrum
- We continue to deliver on the transformation programme, including significant investment in brand-new IT and our core network as well as new transmission and data centres to provide customers with faster speeds, better security, better customer service and improved experience.
New partnerships
- We launched the new proposition mascot Puggerfly to mark the addition of Snapchat to Go Binge, our zero-rated content offering.
- We are building on our leadership in international roaming with a new 2-year partnership with EasyJet, which carries over 80 million annual travellers. This will enable Three customers to check in their hand luggage for free and gives priority boarding as well as other benefits such as a free tote bag for carry-on essentials.
Digital developments
- We saw the sustained growth of our loyalty and rewards app, Wuntu, which has now reached 1.1 million active users, up from 350,000 in H1 17
- We now have 400 partners live on the app, driving 1.5m monthly redemptions, up from 400,000 in H1 17, as we continue to focus on enhancing the customer experience.
- NPS for Wuntu customers is +36
Dave Dyson, Chief Executive of Three UK, said:
“I am pleased to report further progress in H1 2018, even as we re-build the business for the future. Our financial performance was solid and builds on the strong foundations we reported at FY 17. I am proud of the continued improvements in customer experience and our lowest ever contract handset churn rate reflects a business that has a genuine focus on its customers.
“Over the course of 2018, we will accelerate the rollout of our 5G network and the opportunity this brings to both our existing and prospective base of customers and partners. All the key components that are needed for a successful 5G service have been procured over the last few years and I am excited by the prospect of trialling 5G soon, working together with our new IT and Core network infrastructure.
“We continue to collaborate with a variety of like-minded brands which will enable us to deliver a first-class experience to our customers. We are particularly pleased to have added Snapchat to our Go Binge offer, as well as launching Superdrug Mobile and our partnership with EasyJet. These are just some examples of how we are increasing our brand recognition and diversifying our revenue streams as well as giving mobile consumers enhanced value and choice.
“As we look ahead to the future, it’s important to recognise that the progress we have made so far is down to the dedication and commitment of the thousands of staff, colleagues and partners, and I would like to thank them for all of their support.”
