The most striking aspects of the Telefónica UK results in January-June 2013 (year-on-year changes in local currency) are as follows:
In the second quarter of 2013, Telefónica UK mobile service revenue trend continued to improve on the back of a sustained strong trading momentum in the contract segment and better commercial performance in prepay despite very competitive market dynamics.
This was reinforced by continuous successful management of customer loyalty, which resulted in a market leading contract churn at levels below 1% for a second consecutive quarter.
The new O2 Refresh tariff launched on the 16th of April represents a unique and bold customer approach with an innovative value for money proposition. The tariff is a vehicle to strengthen our market positioning, improve the distribution channel mix and provide our customers with a greater flexibility to “change phones as often as phones change”. Refresh has only been available through our direct channels (on the 14th of July it was launched into the online channel) and only for high-end devices. The take-up of the new tariff has been encouraging in these early stages with a 20% of contract commercial activity opting for a Refresh tariff.
Refresh is a source of differentiation for our direct channels and an enabler to improve the mix of connections via our own channels with the objective to improve our commercial efficiency.
The Company has also outsourced its customer service (2,360 FTE’s) to adapt it to the new digital world with more focus in on-line channels and continues to deploy its network sharing agreement to rationalize and optimize network investment.
It should be highlighted that from the 1st of May, Telefónica UK excludes the financial results of its fixed consumer business (35 million euros in revenues in the period January-April 2013 and no relevant OIBDA contribution), that was sold in April of 2013.
Total accesses reached 23.4 million at the end of June 2013 (stable year-on-year) impacted by the disposal of fixed business assets (720 thousand accesses: 209 thousand in fixed telephony accesses and 511 thousand in fixed broadband accesses).
CEO, Telefónica UK
Ronan Dunne was appointed Chief Executive Officer of Telefónica O2 UK on 1 January 2008. At this time, he also joined the board of Telefónica Europe plc.
Mr. Dunne was previously Chief Financial Officer of Telefónica O2 UK, a position held since February 2005. Prior to this, he held the role of Head of Finance, at parent company O2 plc, reporting to the Group Chief Financial Officer. He is a trustee of the O2 pension scheme.
Prior to joining O2, Mr. Dunne held senior financial positions in the banking and the corporate sectors. These included the Head of Strategic Finance and Integration at Exel plc. He was born and educated in Dublin and moved to the UK in 1987.
Ronan is a fellow and former council member of the Institute of Chartered Accountants in Ireland (ICAI). He is also a fellow of the Association of Corporate Treasurers (ACT).