Big-spending O2 sees profits slide

Britain's second-biggest mobiles carrier O2 yesterday has admitted that operating profits slumped by a third in the first three months of the year as it spent heavily to win more customers.

O2, sponsor of the England national rugby side, added 223,000 contract customers, who are more valuable than pay-as-you-go. That was the highest quarterly increase since autumn 2010. Its total UK customer base rose to 23.3 million.

Operating profits fell 33.2 per cent to €€334m (£268m).