Three UK reports H1 18 results
Three UK today announces its half-year results for the first six months of 2018. All comparisons are year on year unless otherwise stated.
- 6% growth of the active contract customer base; total customer base now 10.1 million
- Contract handset churn at lowest ever level of 1%, a 9% improvement
- Usage per customer of 7.6GB per month, up 10% from 6.9GB
- 84% of customer base using 4G and 75% of data usage on 4G network
- Market-leading Net Promoter Score maintained at +13
- Significant developments in wholesale division with the launch of Superdrug Mobile and continued growth of iD Mobile.
- Revenue of £1.19 billion, up 2%
- Customer service margin of £729 million, up 1%
- EBITDA of £364 million, up 7%
- Contract AMPU of £15.34, down 7%
Strengthening and broadening the customer base
- We continued to deliver on our multi-brand approach
- We launched a new SME business offering
- With our focus on providing the best customer service, 99% of all contract sales are now coming through direct channels.
- Churn has improved to its lowest ever rate, reflecting our growing, engaged and high-quality customer base.
- Three received less than the average number of complaints, across UK mobile network operators, according to Ofcom1
Market-leading connectivity: developments on the road to 5G
- We secured 20MHz at auction to add to the UK’s leading 5G spectrum portfolio
- We signed an agreement with SSE to unbundle BT local telephone exchanges to facilitate fibre optic connections of masts to datacentres.
- The deal will allow Three UK customers to consume more data than ever.
- We are the first UK network to stop selling 3G-only handsets
- New contract signed with Huawei for 5G network roll-out
- 5G trials are set to begin within the next six months
Network and IT transformation
- CAPEX of £125 million during the period excluding spectrum
- We continue to deliver on the transformation programme, including significant investment in brand-new IT and our core network as well as new transmission and data centres to provide customers with faster speeds, better security, better customer service and improved experience.
- We launched the new proposition mascot Puggerfly to mark the addition of Snapchat to Go Binge, our zero-rated content offering.
- We are building on our leadership in international roaming with a new 2-year partnership with EasyJet, which carries over 80 million annual travellers. This will enable Three customers to check in their hand luggage for free and gives priority boarding as well as other benefits such as a free tote bag for carry-on essentials.
- We saw the sustained growth of our loyalty and rewards app, Wuntu, which has now reached 1.1 million active users, up from 350,000 in H1 17
- We now have 400 partners live on the app, driving 1.5m monthly redemptions, up from 400,000 in H1 17, as we continue to focus on enhancing the customer experience.
- NPS for Wuntu customers is +36
Dave Dyson, Chief Executive of Three UK, said:
“I am pleased to report further progress in H1 2018, even as we re-build the business for the future. Our financial performance was solid and builds on the strong foundations we reported at FY 17. I am proud of the continued improvements in customer experience and our lowest ever contract handset churn rate reflects a business that has a genuine focus on its customers.
“Over the course of 2018, we will accelerate the rollout of our 5G network and the opportunity this brings to both our existing and prospective base of customers and partners. All the key components that are needed for a successful 5G service have been procured over the last few years and I am excited by the prospect of trialling 5G soon, working together with our new IT and Core network infrastructure.
“We continue to collaborate with a variety of like-minded brands which will enable us to deliver a first-class experience to our customers. We are particularly pleased to have added Snapchat to our Go Binge offer, as well as launching Superdrug Mobile and our partnership with EasyJet. These are just some examples of how we are increasing our brand recognition and diversifying our revenue streams as well as giving mobile consumers enhanced value and choice.
“As we look ahead to the future, it’s important to recognise that the progress we have made so far is down to the dedication and commitment of the thousands of staff, colleagues and partners, and I would like to thank them for all of their support.”
1As per Ofcom’s latest Q1 2018 Telecoms and pay-TV complaint report
Click on the image to view Three UK reports H1 18 results
Notes to Editors
Andy Rivett-Carnac / Chloe Francklin
+44 (0)20 3805 4822 / +44 (0)7454 959 715
Three is a communications company focused on connecting people to people, people to things and things to things.
Today, Three has more than 10 million customers who use over 3.5 times more mobile data than the industry average. Our network covers over 99% of the UK population.
Three has the UK’s leading 5G spectrum portfolio holding more than the rest of the industry combined. Three is the only operator able to meet the IMT 2020 standard for full 5G services.
Three was voted the Best Network for Data at the Mobile Choice Consumer Awards, as well as Best Network for Roaming by uSwitch, and the Best High Street Retailer at the Mobile Industry Awards. We have a Net Promoter Score of +13, the best of any UK network, alongside +18 score for Employee Net Promoter Score, reflecting a high level of employee engagement.
Three UK is part of the CK Hutchison Holdings Ltd group of companies which has mobile operations in 11 countries. We employ more than 4,000 people across our offices in Maidenhead, Glasgow and Reading and our 300 retail stores.