Three UK has increased its revenue by 9 per cent to £1.3 billion in the first half of 2024.
Net customer revenue was also up 6 per cent and handset revenue rose 10 per cent, driven by customer growth in certain customer segments.
The company’s total margin climbed 9 per cent to £879 million over the same period.
Reported EBITDA was also up 31 per cent to £213 million.
Three’s active customer base increased 3 per cent or 352,000 year-on-year, bringing the total to 10.9 million, amidst strong competition from MVNOs and other operators.Its total contract customers were also up 5 per cent y-o-y to 9.2 million as a result of increases to B2B, 5G Home and SMARTY base offsetting decline in core business areas.
However, at the same time, the company’s operating expenses also increased by 5 per cent to £548 million, driven by an enlarged network and cost inflation.Three also completed the construction of 311 (of which 269 are now live) additional sites as part of UK’s Shared Rural Network aimed at improving 4G connectivity for residents and businesses in rural locations across the country.
Additionally, it increased its 4,900 5G sites to 4,900, from 4,400 in H1 2023 across 656 towns and cities, with a 62 per cent population coverage (H1 2023: 61 per cent).
The company also ran a successful pilot programme to prepare for the switch off of 3G, which will begin in September.
Robert Finnegan, chief executive officer of Three UK, said, “We have made progress in the first of half of the year with growth in certain segments such as SMARTY, 5G home broadband and B2B.
“Despite scaling back our capex, we continued to make a loss driven by the escalating inflationary costs of operating our network. Our cashflows have been negative since 2020 and our costs have almost doubled in five years, meaning investment in network is unsustainable.
“UK mobile networks rank an abysmal 22nd out of 25 in Europe on 5G speeds and availability, with the dysfunctional structure of the market denying us the ability to invest sustainably to fix this situation. Our merger with Vodafone will unlock £11 billion worth of investment in digital infrastructure, creating a best-in-class 5G network for the UK and helping to grow the UK economy.”