Mobile operator O2 is making higher profits from its customers in the Republic than from those in its other territories, according to figures released yesterday.
O2 Ireland made profits before interest, tax and write offs of €159 million in the six months to the end of September, compared with €147 million during the same period in 2003.
In a statement released yesterday, the company said its margins during the period in the Republic were 37.9 per cent. Its comparable margins in the UK were 28.5 per cent while in Germany they were 18.6 per cent.
Commenting on the figures yesterday, O2 Ireland chief executive Ms Danuta Gray argued that the three markets could not be compared. She pointed out that O2 was a small player in Germany, with just 8 per cent of the market, while in the UK its customer base includes people who do not use mobiles frequently.
However, she agreed there was greater competition in both countries than in the Republic. "In the UK, the level of competition is higher, but you have 60 million people there while you have four million people here," she said.
Ms Gray added that with three players currently providing services here, the company would argue that competition in the Republic's market was very intense.
Average revenue per user (ARPU) at the end of September was €560 a year, compared with €551 in 2003. This means that, at the end of September, it had earned an average of €560 from each Irish customer over the previous 12 months. Its British ARPU was just over €402, while in Germany it was €529.
She said its ongoing commitment to maintaining investment here depended on the State not over-regulating in order to "aggressively force" greater competition into the market. It spends an average of €4 million a week on its network and services in the State, Ms Gray said.
The company generated total revenues in the Republic of €418 million in the six-month period, a 13 per cent increase on the €371 million it earned during the corresponding period in 2003.
O2 spent €114 million acquiring a licence for a third generation (3G) mobile network from the State. Ms Gray said that the company was on target to meet its obligation to have 50 per cent population coverage with 3G by next September. It will launch the service next year.
Globally parent MMO2 had turnover of €4.6 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.2 billion and operating profits of €385 million.
MMO2 was formed when the UK's one-time state utility, British Telecom (BT), spun off its mobile arm in 2000. Earlier that year, BT acquired the Esat group, which operated the State's second mobile licence.
The company said it expects to pay a dividend for the first time at the end of the year.
