Three UK publishes Q3 2024 results

Three UK publishes Q3 2024 results

Press release 14th November 2024 Financial

.	YTD 2024	YTD 2023	% Variance
Total Revenue (£m)	2,039	1,871	+9%
Total Margin (£m)	1,345	1,239	+9%
Capex (£m)	(338)	(350)	+3%
Net ARPU (£)	13.56	13.21	+3%
Net AMPU (£)	12.30	11.87	+4%
Active Customer ('000)	10,931	10,735	+2%
Active Contract Customer ('000)	9,273	8,928	+4%
Registered Contract Churn (%)	1.6%	1.4%	+0.2%

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Highlights

• Despite growth in revenue and margin, operating costs continued to rise as a result of inflation, causing EBITDA less capex to remain negative.
• Continued strong growth in SMARTY, Business and Home segments, supporting overall increases in revenue, margin and active customer base.
• High cost of living leading customers to lower-value products, driving market competition and elevated customer churn rate, putting pressure on core business areas of Contract and Prepay Voice.
• Year-to-date capex remains lower following spending on network rollout and IT transformation projects in previous years.
• 3 Vision digital transformation completed with 132 legacy apps switched off.
• HRV requirements met with less than 35% of 5G traffic on Huawei equipment ahead of deadline. On track to meet rest of requirements in required timeframe.
• Met SRN obligations with 88% Partial Not Spot target completed.

Robert Finnegan, Chief Executive Officer of Three UK said: "These results show that while we continue to grow our customer base and manage the business efficiently, we remain cashflow negative since 2019. The UK ranks a lowly 22nd out of 25 European countries* for 5G speeds and availability and we simply cannot, as a standalone company, generate the returns to justify the levels of investment required to change this. We have given cast-iron commitments to the CMA to enable our merger with Vodafone unlocking £11bn of private investment that will transform UK 5G and deliver a world class network for consumers and businesses."

* OpenSignal European market study