UK operator EE saw revenues fall between April and June despite the number of 4G customers and overall ARPU increasing.

Revenues were down 2.5 percent year-on-year in the second quarter to €2 billion.

Its 4G customer base surged 45 percent over Q1 – EE claimed this represented the best ever performance by a European operator – to reach 4.2 million.

The company said almost a third of new/renewing customers selected its double speed 4G packages and it remains “firmly on track” to exceed six million 4G customers by the end of the year.

CCS Insight analyst Kester Mann told European Communications: “While EE again saw impressive 4G uptake during 2Q14, competitive and regulatory headwinds continued to impact its financial performance.

“The UK 4G market is one of the most competitive in Europe and the operator’s strong customer growth reflects its lower tariffs that now begin at £13.99 per month. This compares to the minimum £36 per month tariff when it launched in October 2012.”

Revenues from fixed-line services grew 19.6 percent – the 10th consecutive quarter of growth – after the operator added 30,000 net subscribers.

Meanwhile, the number of M2M connections rose over 19 percent to 1.8 million while the number of MVNOs using its network grew 4.1 percent to 3.7 million.

For the first six months of the year, EBITDA rose 8.2 percent to €830 million as capex fell over 15 percent to €338 million.

EE Chief Executive Olaf Swantee commented: "[The] results demonstrate that consumers and businesses are responding to our strategy to provide the UK’s biggest, fastest and most reliable network.

“We are delivering on our goals to rapidly transition our pay monthly customer base to 4G, generate significant merger cost savings and improve our EBITDA margin performance.”

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