It's slim but Everything signals growth

Everything Everywhere – the company behind merged mobile phone giants Orange and T-Mobile – has returned to growth in the third quarter, albeit by the slimmest of margins.
By The Newsroom
Published 28th Oct 2010, 11:29 BST
Updated 28th Oct 2010, 11:29 BST

Sales grew to 1.8bn – an increase of 0.1 per cent compared to the same period the previous year – due mainly to the firm increasing its number of contract customers by 185,000 and amid strong demand for smartphones. In the second quarter sales were down by 4.8 per cent year-on-year.

Last month the company said it was cutting 7.5 per cent of its 16,000 strong workforce to end duplicated roles following the tie-up between Orange and T-Mobile in the UK earlier this year.

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The two mobile phone giants are now offering customers a joint-roaming deal that allows users the benefits of both networks to allow them better reception at no extra cost. More than one million of its 27.9 million customers have already signed up to the deal.

It has also enticed more of its customers to sign up to more lucrative contracts by offering better deals and more smartphones. The percentage of its customers on contracts has increased to 43 per cent from 40 per cent last year.

Some 75 per cent of its contract sales were for smartphones, compared to 38 per cent in the same period the previous year.

The firm, jointly owned by Deutsche Telekom and France Telecom, announ-ced an 18.5 per cent plunge in adjusted second quarter operating profits in September in its first update since the merger.