4G demand pushes EE closer to £10bn float

 

The strongest-ever quarterly earnings from the UK’s largest mobile phone group, Everything Everywhere, today boosted the chances of its £10 billion flotation on the London stock market taking place by the end of this year.

EE — formed by the merger of Orange UK and T-Mobile, Deutsche Telekom’s UK network, three years ago — has taken full advantage of the fact that it was allowed to launch its high-speed 4G services well ahead of its rivals Vodafone and O2.

The number of customers switching to 4G doubled in the past three months, taking the total to 687,000 — meaning that EE will comfortably smash its target of one million 4G customers by the end of 2013.

Chief executive Olaf Swantee said: “The latest quarter shows real improvement. That comes from both the number of new customers taking out contracts and from cutting our costs. One in two new business customers is taking 4G against one in four at the start of the year. Across the board, customers who switch from 3G to 4G are producing 10 per cent higher revenues for us.”

He also believes that the recent doubling of 4G speeds in several major UK cities including London will give EE the edge when its rivals finally get around to launching their services. He said: “We are bringing more mid-range phones and services in for 4G while the iPhone 5 won’t actually work on Vodafone’s or O2’s 4G networks. The only country in the world which has 4G speeds as fast as ours is Korea.”

Swantee insisted that any decision on an imminent initial public offering was up to his joint shareholders. He said: “It is about what they think. They have both appointed banks to advise them but when and how is up to them. Perhaps Orange will say more when it reports tomorrow.”

He added: “There are advantages and disadvantages for an IPO, for a sale to private equity and for remaining as we are. An IPO would certainly make EE even more British, which is particularly important in the business-to-business market where we are still in second place even though we are the country’s biggest mobile company.

“I am quite open minded about what should happen. It is interesting that EE is one of those rare examples of a joint venture which has really worked. What I am concentrating on is ensuring that we stay ahead and are the best operator in the UK.”

Earnings before interest, tax, depreciation and amortisation rose 9.1 per cent to £734 million in the three months to end-June. EE has set itself a target of hitting an ebitda margin of 25 per cent by the end of 2014.

Orange has appointed Morgan Stanley and Bank of America Merrill Lynch to advise on a potential EE float while Deutsche Telekom has brought in JP Morgan. EE itself has yet to choose an adviser.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA celebration of British elections
Arts and Entertainment
Billie Piper as Brona in Penny Dreadful
tvReview: It’s business as usual in Victorian London. Let’s hope that changes as we get further into the new series spoiler alert
Life and Style
A nurse tends to a recovering patient on a general ward at The Queen Elizabeth Hospital in Birmingham
health
News
Fans take a selfie with Ed Miliband in Kempston, near Bedford, on Tuesday
election 2015
Arts and Entertainment
No Offence
tvReview: No Offence has characters who are larger than life and yet somehow completely true to life at the same time spoiler alert
News
Chuck Norris pictured in 1996
people
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power