The company explained that revenue and margin growth has been driven by growth in its customer base, with the active contract customer base increasing by 7 per cent year-on-year. Repricing initiatives have also contributed to a 9 per cent increase in total margin.
Robert Finnegan, chief executive, Three UK, said, “We have continued to grow the business this quarter and I’m proud that we have increased the customer base and that has resulted in margin growth.
“However, we have been cashflow negative since the beginning of 2020, a situation that is unsustainable. I believe that merging with Vodafone is vital to give us the required scale to invest, grow and compete to create a best-in-class network for the UK.
“I’d like to take this opportunity to thank all my colleagues for their hard work and ongoing commitment to the business.”
The company added that its active contract customer base maintained a solid growth year-on-year, driven by growth of B2B in SME segment, 5G Home and SMARTY. Churn rates remained stable through retention initiatives.
Three UK’s Opex has increased year-on-year due to inflationary pressure including higher energy costs, as well as additional service fees upon disposal of the tower assets in November 2022 and higher maintenance as network rollout continues.
Reported capex is down, with capex spend focused on meeting regulatory requirements including SRN and high-risk vendor swap outs.