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View Full Version : 02 revenues to hit new record



3GScottishUser
12th November 2005, 05:52 PM
From The Business On-Line (12/11/2005):

O2 – the UK-based mobile operator being acquired by Spain’s Telefonica for £17.7bn (c 26bn, $32.5bn) – will unveil results on Monday that should vindicate what is the Europe’s largest cash bid for a company.

City analysts expect O2’s half-yearly revenues to rise to roughly £3.6bn from £3.227bn for the same period last year, while earnings before interest, tax, depreciation and amortisation (ebitda) are predicted to rise from £850m to about £980m, although some analysts predict that the figure could exceed £1bn.

While O2 is expected to show growth in its main markets, it is the company’s German operations that are again expected to be the star. O2 is expected to announce that ebitda in Germany rose from £163m to about £232m and German revenues up from £877m to more than £1bn. By contrast, O2 is expected to announce UK revenues of more than £2bn (£1.979bn).

The driving force behind O2’s success in Germany, at the expense of rivals such as T-Mobile and Vodafone, is product innovation. German customers are flocking to O2’s Genion service, which allows users to make high-quality voice calls at a cheap rate in their house or office.

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