3GScottishUser
28th September 2005, 03:49 AM
From Guardian (28/08/2005):
European consumers' love of mobile phones continues unabated with the operator O2 raising its revenue forecasts yesterday for its businesses in Britain and Germany. Europe's sixth-largest mobile phone company believes the industry is dividing into winners and losers and obviously believes it falls into the winners' camp in its home market as customer numbers in Britain have topped 15 million for the first time.
The company, which has been the subject of intense takeover speculation over the past few weeks, reckons it has added about 400,000 new subscribers in the last three months, up from the 232,000 it acquired in the previous quarter. Just under half its new customers have signed up to year-long contracts.
Despite the fiercely competitive British market, O2, which was demerged from BT almost four years ago, said its performance in the first half of the year so far has been stronger than expected. As a result, O2 now expects service revenues in Britain to grow between 6% and 9% over the year as a whole, compared with its previous guidance of growth in the mid-single digits.
In a briefing with analysts, O2's finance director, David Finch, said the mobile phone market in Britain was splitting into winners and losers, adding: "Right now, we seem to be a winner".
Christian Maher, at Investec Securities, described the news as "another strong trading statement" and lifted his share price target on the stock by 12% to 167p. The stock has outperformed recently on hopes the company will be taken over, but Mr Maher said the trading update should refocus investors' minds on the performance of the business itself. The company is taking market share, according to Mark James at Nomura, and continues to exceed expectations. "Our enthusiasm is only tempered by the fact that much of this looks to be in the share price," he added in a note on the stock.
Julian Hewitt, at industry experts Ovum, said the statement suggested O2 would continue to beat City expectations. "Headlines in the press may prefer to speculate on bid rumours for O2, but meanwhile the company continues to get on with the job," he said.
Christian Maher, at Investec Securities, described the news as "another strong trading statement" and lifted his share price target on the stock by 12% to 167p. The stock has outperformed recently on hopes the company will be taken over, but Mr Maher said the trading update should refocus investors' minds on the performance of the business itself. The company is taking market share, according to Mark James at Nomura, and continues to exceed expectations. "Our enthusiasm is only tempered by the fact that much of this looks to be in the share price," he added in a note on the stock.
Julian Hewitt, at industry experts Ovum, said the statement suggested O2 would continue to beat City expectations. "Headlines in the press may prefer to speculate on bid rumours for O2, but meanwhile the company continues to get on with the job," he said.
[...]
Analysts reacted warmly to the improved guidance contained within the pre-closed trading update from O2, which will announce its half-year figures in November. Shares in the company gained 2.5p to 155.5p, valuing it at £13.6bn.
Christian Maher, at Investec Securities, described the news as "another strong trading statement" and lifted his share price target on the stock by 12% to 167p. The stock has outperformed recently on hopes the company will be taken over, but Mr Maher said the trading update should refocus investors' minds on the performance of the business itself. The company is taking market share, according to Mark James at Nomura, and continues to exceed expectations. "Our enthusiasm is only tempered by the fact that much of this looks to be in the share price," he added in a note on the stock.
Julian Hewitt, at industry experts Ovum, said the statement suggested O2 would continue to beat City expectations. "Headlines in the press may prefer to speculate on bid rumours for O2, but meanwhile the company continues to get on with the job," he said.
Full Story: http://www.guardian.co.uk/business/story/0,3604,1579725,00.html
European consumers' love of mobile phones continues unabated with the operator O2 raising its revenue forecasts yesterday for its businesses in Britain and Germany. Europe's sixth-largest mobile phone company believes the industry is dividing into winners and losers and obviously believes it falls into the winners' camp in its home market as customer numbers in Britain have topped 15 million for the first time.
The company, which has been the subject of intense takeover speculation over the past few weeks, reckons it has added about 400,000 new subscribers in the last three months, up from the 232,000 it acquired in the previous quarter. Just under half its new customers have signed up to year-long contracts.
Despite the fiercely competitive British market, O2, which was demerged from BT almost four years ago, said its performance in the first half of the year so far has been stronger than expected. As a result, O2 now expects service revenues in Britain to grow between 6% and 9% over the year as a whole, compared with its previous guidance of growth in the mid-single digits.
In a briefing with analysts, O2's finance director, David Finch, said the mobile phone market in Britain was splitting into winners and losers, adding: "Right now, we seem to be a winner".
Christian Maher, at Investec Securities, described the news as "another strong trading statement" and lifted his share price target on the stock by 12% to 167p. The stock has outperformed recently on hopes the company will be taken over, but Mr Maher said the trading update should refocus investors' minds on the performance of the business itself. The company is taking market share, according to Mark James at Nomura, and continues to exceed expectations. "Our enthusiasm is only tempered by the fact that much of this looks to be in the share price," he added in a note on the stock.
Julian Hewitt, at industry experts Ovum, said the statement suggested O2 would continue to beat City expectations. "Headlines in the press may prefer to speculate on bid rumours for O2, but meanwhile the company continues to get on with the job," he said.
Christian Maher, at Investec Securities, described the news as "another strong trading statement" and lifted his share price target on the stock by 12% to 167p. The stock has outperformed recently on hopes the company will be taken over, but Mr Maher said the trading update should refocus investors' minds on the performance of the business itself. The company is taking market share, according to Mark James at Nomura, and continues to exceed expectations. "Our enthusiasm is only tempered by the fact that much of this looks to be in the share price," he added in a note on the stock.
Julian Hewitt, at industry experts Ovum, said the statement suggested O2 would continue to beat City expectations. "Headlines in the press may prefer to speculate on bid rumours for O2, but meanwhile the company continues to get on with the job," he said.
[...]
Analysts reacted warmly to the improved guidance contained within the pre-closed trading update from O2, which will announce its half-year figures in November. Shares in the company gained 2.5p to 155.5p, valuing it at £13.6bn.
Christian Maher, at Investec Securities, described the news as "another strong trading statement" and lifted his share price target on the stock by 12% to 167p. The stock has outperformed recently on hopes the company will be taken over, but Mr Maher said the trading update should refocus investors' minds on the performance of the business itself. The company is taking market share, according to Mark James at Nomura, and continues to exceed expectations. "Our enthusiasm is only tempered by the fact that much of this looks to be in the share price," he added in a note on the stock.
Julian Hewitt, at industry experts Ovum, said the statement suggested O2 would continue to beat City expectations. "Headlines in the press may prefer to speculate on bid rumours for O2, but meanwhile the company continues to get on with the job," he said.
Full Story: http://www.guardian.co.uk/business/story/0,3604,1579725,00.html