Booming Orange squeezed in UK
ORANGE has paid a hefty price for a sharp jump in its British customer numbers with average revenues per user - the figure keenly watched by the City - falling more than 12% in the UK last year.
The French-owned group, claiming leadership of the UK market, said British user numbers jumped 2.6m to 12.4m, helping drive full-year group sales 25% higher to £9.2bn.
But average revenue per user - the amount of money it receives from each customer - fell to £246 from £280.
The debt-burdened mobile industry switched early last year from chasing market share to focusing on revenues and profits.
Orange blamed an increase in the number of less-profitable pre-pay customers. It said revenues over the past two quarters suggested a turnaround, and that UK revenues could stabilise by the middle of this year.
'Despite the rapid growth of our customer base we may be approaching, sooner than expected, the point when overall average revenues start to grow,' said Orange deputy chief executive Graham Howe. Full-year revenues from contract customers rose 5% in the UK.
Worldwide customer numbers rose 29% to 39.3m. Average revenues in France fell to e583 (£337) from e592 in 2000.
Shares in Orange, which ranks third among European mobile operators after Vodafone and Telecom Italia Mobile by market capitalisation, climbed more than 1% in opening trade before falling to e9, ahead 0.2%. It debuted at e10 last February.
