Three Profits Boosted By Rising Mobile Data Use

Three recorded improved operating profits of £123 million during the first half of 2014, with the mobile operator attributing the rise to growth in both the number of its customers and the amount of data they are using.

“We have achieved sustained and profitable growth while introducing new tools and plans to help make mobile better for customers,” says Richard Woodward, Three CFO. “The steps we have taken over the last six months have helped us attract and retain engaged and profitable customers while maintaining an efficient cost structure.”

The company, owned by Taiwanese based Hutchison Whampoa, made £121 million during the second half of 2013 and £86 million during the first half of last year.

Three profits rise

Since then, Three has added more countries to its ‘Feel at Home’ roaming offer, abolished charges for 0800 numbers and launched Three inTouch, an application that lets customers use their monthly allowances over a Wi-Fi connection – something which will be useful on the London Underground now that Three has finally agreed a deal with Virgin Media for tube Wi-Fi.

Three also offers 4G at no extra cost to customers, something which has impacted data use on the network. Its subscribers now consume 2.6GB every month, up from 2.2GB in December 2013 and 1.8GB in June last year – significantly more than the industry average.

“We have delivered a huge amount in a short space of time and I am particularly proud of the positive improvements we have continued to make to our customers experience,” adds Three CEO Dave Dyson.

Three’s future performance could be boosted by a deal with Carphone Warehouse, which reportedly wants to launch a Mobile Virtual Network Operator (MVNO) using Three’s infrastructure. It is understood that Three has been strengthened by the 800MHz spectrum it acquired in the Ofcom 4G auction last year and could be open to more MVNO agreements.

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