Mobile carrier mmO2 Plc has upped its forecast for UK service growth and expects the full year to show 9% to 12% expansion, compared with its earlier forecast of a 7% to 10% increase.
But the former mobile arm of UK incumbent BT Group Plc said that while it has benefited from an expansion of the customer base and higher ARPU, growth would slow during the second half as a result of the 30% termination rate cut imposed by regulator Ofcom from September 1.
The company also claims to be prospering in the German market, where it expects to report strong service revenue growth, driven by expansion of the customer base. Though it plans to continue to re-invest to drive further expansion, mmO2 said it expects to reach its target EBITDA margin in the high teens.
In Ireland, it expects to report steady growth of service revenue and a stable EBITDA margin in the first half and for this to continue in the second half.