mm02 Announces Preliminary Results for the Year Ended March 31, 2002.Business Editors LONDON--(BUSINESS WIRE)--May 29, 2002 "mmO2 has delivered results in line with our expectations at the time of the demerger demerger n (Comm) → Abspaltung f, Demerger m , despite a challenging industry environment. We were particularly encouraged by the progress made in Germany Made in Germany is a merchandise mark indicating that a product has been manufactured in Germany. History The label was originally introduced to Britain by the Merchandise Marks Act 1887 and the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . Tighter control of capital expenditure and working capital across the Group kept net debt below our original expectations," said David Varney Sir David Varney (born 1946) was the chairman of HM Revenue and Customs from its establishment in April 2005 to the end of August 2006. David Varney was named as a recipient of a knighthood in the 2006 New Year's honours list. , Chairman, mmO2 plc. FULL YEAR RESULTS: - our periodic reports to the US Securities and Exchange Commission, also known as the SEC, on Forms 20-F and 6-K; - our annual report and accounts and half-yearly reports; - our press releases and other written materials; and - oral statements made by our officers, directors or employees to third parties. FOURTH QUARTER OPERATIONAL HIGHLIGHTS: - our periodic reports to the US Securities and Exchange Commission, also known as the SEC, on Forms 20-F and 6-K; - our annual report and accounts and half-yearly reports; - our press releases and other written materials; and - oral statements made by our officers, directors or employees to third parties. Mr. Varney Varney may refer to: In places:
n the capability to cohere or stick together to form a mass. management of all our businesses, and to build our lead in the market for mobile data services. Our financial performance since demerger reflects the initial progress we have made in each of these areas. "Our market environment remains challenging, with subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. growth slowing and the market for mobile data services still in its early stage of development. We believe mmO2 has the right strategy and is well positioned for the next phase of industry growth, driven by customer demand for new mobile data services. We will continue to grow revenues and see further substantial improvement in our EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become margin. We remain totally committed to deliver on the goals we set out at the time of the demerger, and create value for our shareholders." Note(i) 2001 comparative stated on statutory basis. All other comparatives on a pro-forma basis. The results of the six months and full year ended 31 March 2001 have been shown on a pro-forma basis to include the six months and twelve months respectively of all operating entities of mmO2 as though they were subsidiaries for the whole of those periods.
Table 1 : Second-half and full-year P&L - by operating business
Six months Full year
ending 31 March ending 31 March
2002 2001 2002 2001
pro-forma pro-forma
(pound) (pound) (pound) (pound)
million million million million
----------------------------------------------------------------------
Turnover
O2 UK 1,388 1,372 2,756 2,706
O2 Germany 455 384 875 677
O2 Netherlands 111 62 200 114
O2 Ireland 202 165 395 309
O2 Online 61 14 100 15
Other & elims. (40) 2 (50) 15
Group total 2,177 1,999 4,276 3,836
EBITDA before
exceptional items
O2 UK 343 262 670 555
O2 Germany (52) (128) (166) (343)
O2 Netherlands 3 (56) (51) (104)
O2 Ireland 63 36 122 68
O2 Online (13) (94) (68) (143)
Other & elims. (46) (32) (74) (72)
Group total 298 (12) 433 (39)
Operating profit/(loss)
before goodwill and
exceptional items
O2 UK 115 121 298 300
O2 Germany (178) (271) (399) (566)
O2 Netherlands (32) (75) (119) (140)
O2 Ireland 30 11 59 21
O2 Online (28) (99) (93) (148)
Other & elims. (55) (45) (83) (80)
Group total (148) (358) (337) (613)
Exceptional items - - (150) -
Goodwill amortisation - - (369) -
Group operating loss (856)
Share of associates
profit - - 8 -
Net interest - - (25) -
Loss on ordinary
activities (873)
before taxation
Table 2: Second-half and full-year capital expenditure
Six months Full year
ending 31 March ending 31 March
2002 2001 2002 2001
pro-forma pro-forma
(pound) (pound) (pound) (pound)
million million million million
----------------------------------------------------------------------
Capital expenditure
O2 UK 299 496 556 721
O2 Germany 89 306 250 490
O2 Netherlands 29 53 97 126
O2 Ireland 41 60 85 127
O2 Online 18 29 59 48
Other 43 49 95 69
Group total 519 993 1,142 1,581
Year-end net debt - - (617) -
SECOND HALF AND FULL YEAR FINANCIAL RESULTS Continuing top-line growth mmO2's full-year service revenues grew by 17.7% to (pound)3,672 million. Total revenue increased by 11.5% to (pound)4,276 million. Growth was driven by a continuing increase in customer numbers, with mmO2's active customer base growing by 12.2%, to 17.457 million at the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Contract customers made up 35% of the Group's year-end base. The decline in ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. across the Group was largely halted in the second half, with blended blend v. blend·ed or blent , blend·ing, blends v.tr. 1. To combine or mix so that the constituent parts are indistinguishable from one another: 12-month ARPU in the fourth quarter slightly ahead of the previous quarter, in all mmO2's operating businesses. Revenue generated from data services more than doubled during the year, and accounted for 11.7% of Group service revenues. mmO2's customers sent more than 5.3 billion text messages during the year. Accelerating EBITDA improvement mmO2's full-year EBITDA (before exceptional items) improved to (pound)433 million, from a loss of (pound)(39) million last year. The Group's full-year EBITDA margin was 10.1%. The rate of improvement increased in the second half, with EBITDA of (pound)298 million achieved, compared to a loss of (pound)(12) million in the second half last year. mmO2's second half EBITDA margin was 13.7%. Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). to improve operating efficiency The Group incurred exceptional charges of (pound)150 million in the year, comprising (pound)27 million of exceptional items directly related to the demerger, and (pound)123 million of restructuring costs in mmO2's UK, German, Online and head office operations. The restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. included (pound)87 million in respect of redundancy Having a secondary peripheral, computer system or network device that takes over when the primary unit fails. See fault tolerant, mirroring, RAID, hot standby and backup types. 1. costs. Of the restructuring costs, (pound)110 million related to the two programmes announced in February February: see month. 2002, which aim to achieve annualised operating cost savings of (pound)70 million. These programmes involve substantial reductions in the permanent workforce, to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6,100 in O2 UK and to 3,400 in O2 Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . Full-year loss reduced The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the full year, before goodwill amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. and exceptional items, was (pound)(337) million, a substantial improvement on the loss of (pound)(613) million incurred in 2001. Goodwill amortisation was (pound)(369) million. The interest charge was (pound)(25) million, reflecting the slower than expected increase in net debt. The tax charge was a credit of (pound)23 million, reflecting the Group's present loss making position. The full year loss after tax was (pound)(850) million, compared to a loss of (pound)(3,529) million in 2001. Tight control of investment Capital expenditure for the full year was (pound)1,142 million, a 28% reduction from 2001. The rate of capital expenditure across the Group reduced sharply in the second half, reflecting the winding down of the GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. network build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. and GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. upgrade programmes, and tight control of the ongoing investment programme. Group capital expenditure in the second half almost halved halve tr.v. halved, halv·ing, halves 1. To divide (something) into two equal portions or parts. 2. To lessen or reduce by half: halved the recipe to serve two. 3. to (pound)519 million, from (pound)993 million in the same period in 2001. In the second half of 2002 capital expenditure was 24% of Group revenue, compared to just under 50% in the previous year. The investment programme focussed on improving network quality, upgrading billing and customer management systems, and acquiring sites in preparation for the UMTS (Universal Mobile Telecommunications System) The GSM implementation of the 3G wireless phone system. Part of IMT-2000, UMTS provides service in the 2 GHz band and offers global roaming and personalized features. network build out. Continuing balance sheet strength The substantially lower rate of capital expenditure, and tighter management of cash and working capital across all mmO2's businesses, resulted in year-end net debt of (pound)(617) million. Year-end net debt was significantly below expectations at the time when mmO2 was demerged with net debt of (pound)(506) million. BUSINESS DEVELOPMENTS Group businesses all re-branded "O2" In May 2002 a single customer brand, O2, was launched and is being rolled out across all our businesses. It is a brand that conveys freshness, life, freedom, and clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the , and will come alive for O2's customers through innovative new products and services and the highest levels of customer service. In line with mmO2's focus on lower operating costs operating costs npl → gastos mpl operacionales , the re-branding costs are being absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. within existing marketing budgets. Focused "Products O2" organisation A Products O2 organisation has been created, which includes O2 Online, and is responsible for product development for all O2 businesses. This remit To transmit or send. To relinquish or surrender, such as in the case of a fine, punishment, or sentence. An individual, for example, might remit money to pay bills. TO REMIT. To annul a fine or forfeiture. 2. includes all consumer and business products, and the new organisation has already made significant progress in delivering platforms, systems and capabilities across the Group. This includes roll-out of the BlackBerry blackberry, name for several species of thorny plants of the genus Rubus of the family Rosaceae (rose family). See bramble. blackberry (TM) corporate e-mail device across all the O2 territories, and launching the O2 xda The O2 Xda brand is a range of PDA phones branded O2, produced by multiple manufacturers (mainly HTC, Quanta and Erima). There are several models in the family, the first of which was released in June 2002. XDA The first product released in the XDA range. . Mobile data successes At the end of the year O2 UK achieved market leadership in SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. . Additionally, in the business mobile data market, O2 is the clear leader in enabling businesses to connect to their office e-mail systems, and is the only operator currently offering the RIM BlackBerry(TM) device and secure e-mail solution. At the year-end, more than 300 O2 corporate customers were BlackBerry(TM) users, with almost 6,000 devices in use. Imminent Impending; menacingly close at hand; threatening. Imminent peril, for example, is danger that is certain, immediate, and impending, such as the type an individual might be in as a result of a serious illness or accident. new product and service launches In February 2002 trials of new multi-media messaging services began, and these services will be rolled out during the year. Customers will be able to send and receive media-rich messages - a combination of text, sounds, images and video - to specially enabled handsets. O2 will also continue to deploy exclusive and leading software solutions, such as Microsoft's MMIS MMIS Medicaid Management Information System (various US states) MMIS Microsoft Mobile Information Server MMIS massively multiparticipant Internet sport MMIS Master of Management Information Systems , as well as recently launched devices such as the O2 xda and Handspring hand·spring n. A gymnastic feat in which the body is flipped completely forward or backward from an upright position, landing first on the hands and then on the feet. Treo(TM). Applications and content development O2 Online remains the leading mobile Web and WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. portal, with 4.9 million registered web accounts. To leverage this position, mmO2 has created a web-based community for applications developers and integrators, known as Source O2. This provides developers with access to live GSM, GPRS, and in the near future UMTS, test environments. Over 4,000 application developers are currently members of the Source O2 community. Live 3G network on Isle of Man Noun 1. Isle of Man - one of the British Isles in the Irish Sea Man British Isles - Great Britain and Ireland and adjacent islands in the north Atlantic The first live 3G network in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). became fully operational on the
Isle of Man in December December: see month. 2001. This is being used to trial mmO2's
UMTS products and services, including customer billing systems and
tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic structures, and gives O2 competitive insights into developing and
operating a 3G network.Pan-European mobile data network mmO2 intends to build a seamless See seamless integration. pan-European broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). mobile data network, to support development of advanced multi-media services and their rapid launch across all mmO2's operations simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics . This will be achieved by consolidating all existing equipment supply contracts into three new strategic partnerships, under which Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony and Nokia Nokia (nō`kēä), town (1996 pop. 26,326), Western Finland prov., SW Finland, on Lake Näsijärvi. It is an industrial community where wood and rubber products are manufactured. are to become principal network suppliers. As well as achieving seamless "always on" service across the whole O2 footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. , the new partnerships will deliver capital expenditure savings of (pound)375 million over the next five years. Regulation mmO2 is co-operating with the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community and UK Office of Fair Trading The Office of Fair Trading or OFT is a non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator. in their investigation into international mobile telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. prices. O2 UK is also co-operating with the UK Competition Commission's industry-wide inquiry into the level of charges for connecting calls to networks. Publication of the Commission's report is expected by the end of the year. OUTLOOK - GROUP Revenue in the current financial year is expected to continue to grow, driven by a combination of further growth in the O2 customer base, a richer customer mix, and improving ARPU across the Group. Revenue generation from data services in the current financial year is expected to continue to grow as a proportion of service revenues, driven by the launch of new products and services across the Group, including multi-media messaging and the O2 xda device. The Group remains confident of its performance in the current financial year. O2 UK is focused on improving its operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . O2 Germany remains on track to deliver positive EBITDA before the end of the current financial year, and O2 Netherlands is expected to build on its positive EBITDA performance in the second half of last financial year. The Group will maintain tight control of its investment programme, and in particular will aim to match the timing and quantum quantum In physics, a discrete natural unit, or packet, of energy, charge, angular momentum, or other physical property. Light, for example, which appears in some respects as a continuous electromagnetic wave, on the submicroscopic level is emitted and absorbed in discrete of capital expenditure on the 3G network roll-out with the emerging demand for mobile data services. O2 currently anticipates providing services on its 3G network from mid- mid- pref. Middle: midbrain. 2003, and capital expenditure in the current financial year is expected to be broadly in line with last year. Cautionary statement Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This document contains certain forward-looking statements. We may also make written or oral forward-looking statements in: - our periodic reports to the US Securities and Exchange Commission, also known as the SEC, on Forms 20-F and 6-K; - our annual report and accounts and half-yearly reports; - our press releases and other written materials; and - oral statements made by our officers, directors or employees to third parties. We have based these forward-looking statements on our current plans, expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about us. Forward-looking statements speak only as of the date they are made. Statements that are not historical facts, including statements about our beliefs and expectations are forward-looking statements. Words like "believe," "anticipate," "expect," "intend," "seek," "will," "plan," "could," "may," "might," "project," "goal," "target" and similar expressions often identify forward-looking statements but are not the only ways we identify these statements. These statements may be found in this document generally. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including all the risks discussed in the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. sections. If any one or more of the foregoing assumptions are ultimately incorrect Incorrect means to not be correct and may also refer to:
The information on our web site, any web site mentioned in this document or any web site directly or indirectly linked to our or any other web site mentioned in this document is not incorporated by reference into this document and you should not rely on it.
GROUP PROFIT AND LOSS ACCOUNT
Year ended 31 March 2002
Note 2002 2001
(pound)m (pound)m
Group turnover 4,276 3,200
Net operating expenses
(including exceptional items) (5,132) (6,364)
EBITDA (a) before exceptional items 433 317
Depreciation before exceptional items (747) (362)
Amortisation (392) (298)
Operating loss before exceptional items (706) (343)
Exceptional items 3 (150) (2,821)
Group operating loss (856) (3,164)
Group's share of operating profit/(loss)
of joint ventures
and associates 8 (286)
Total operating loss 2 (848) (3,450)
Net interest payable and similar charges (25) (9)
Loss on ordinary activities before taxation (873) (3,459)
Tax on loss on
ordinary activities 4 23 (70)
Loss on ordinary activities after taxation (850) (3,529)
Minority interests - (4)
Retained loss for the financial year (850) (3,533)
Basic and diluted loss
per share (pence) 5 (9.8)p (40.7)p
(a) EBITDA is earnings before interest, tax, depreciation,
amortisation and exceptional items, excluding share of operating
profits and losses of associates and joint ventures.
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 31 March 2002
2002 2001
(pound)m (pound)m
Loss for the financial year (850) (3,533)
Currency translation differences
arising on foreign currency net investment in:
Subsidiaries 161 (21)
Joint ventures - 10
Total recognised losses relating to the year (689) (3,544)
GROUP BALANCE SHEET
As at 31 March 2002
2002 2001
(pound)m (pound)m
Fixed assets
Intangible assets 15,992 15,624
Tangible assets 4,094 3,727
Investments 37 33
20,123 19,384
Current assets
Stocks 68 157
Debtors 1,090 959
Investments 859 280
Cash at bank and in hand 20 389
2,037 1,785
Creditors: amounts falling due within one year (1,521) (1,504)
Net current assets 516 281
Total assets less current liabilities 20,639 19,665
Creditors: amounts falling due
after more than one year (1,403) (399)
Provisions for liabilities and charges (402) (206)
Net assets 18,834 19,060
Capital and reserves
Called up share capital 9 -
Other reserves 22,656 -
Profit and loss account (3,831) -
Owners' net investment - 19,068
Equity shareholders' funds 18,834 19,068
Equity minority interests - (8)
18,834 19,060
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 March 2002
2002 2001
(pound)m (pound)m
Group operating loss (856) (3,164)
Depreciation and amortisation charges 1,139 3,481
Loss on disposal of fixed assets 9 4
Decrease / (increase) in stock 89 (31)
(Increase) / decrease in debtors (38) 151
Increase / (decrease) in creditors 24 (130)
Increase in provisions 90 7
Net cash inflow from operating activities 457 318
Returns on investments and servicing of finance (9) (11)
Taxation (4) 21
Capital expenditure and financial investment (1,231) (5,234)
Acquisitions and disposals (864) (12,574)
Cash outflow before management of
liquid resources and financing (1,651) (17,480)
Management of liquid resources (459) -
Financing 1,790 17,593
(Decrease) / increase in cash in the year (320) 113
GROUP NET DEBT
As at 31 March 2002
2002 2001
(pound)m (pound)m
Cash at bank and in hand 20 389
Current asset investments 859 280
Bank overdrafts - (49)
Euro medium term notes (net of issue costs) (982) -
Loan notes (58) (132)
Obligations under hire purchase contracts (406) (282)
Other loans and borrowings (50) -
Net (debt) / funds (617) 206
1 Basis of preparation mmO2 (the "Group") was formed during the year ended 31 March 2002 as part of the demerger of the Group from British Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. plc ("BT") which was completed on 19 November November: see month. 2001. The consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge have been prepared using merger accounting principles as if the businesses comprising the Group had been part of the Group for all periods presented, since they have been under common control throughout this period. Businesses acquired from third parties during the period presented have been accounted for using acquisition accounting, from the date control was gained. The consolidated financial statements have been prepared using the same accounting policies and principles as set out in the mmO2 plc Listing Particulars dated 18 September September: see month. 2001, with the exception of the accounting for notional no·tion·al adj. 1. Of, containing, or being a notion; mental or imaginary. 2. Speculative or theoretical. 3. loans and borrowings from BT. For the purpose of the preparation of the financial information contained in the Listing Particulars, a portion of BT's short- and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. loans and other borrowings were allocated to the Group. The basis of preparation adopted for the consolidated financial statements for the year ended 31 March 2002, shows the results and financial position of the Group with no allocations of loans and other borrowings from BT. Loans and other borrowings previously allocated to the Group for the purpose of the Listing Particulars of (pound)16,140 million, and the related interest payable, net of taxation, of (pound)476 million, have not been allocated to the Group. This is consistent with the debt structure of the Group following the completion of its demerger from BT and reflects the fact that these notional loans and other borrowings were not passed down to the Group on demerger. The impact of this difference in presentation on the balance sheet at 31 March 2001 is to increase equity shareholders' funds from (pound)2,452 million to (pound)19,068 million. 2 Segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. analysis
Group Depreciation
turnover and
amortisation
(pound)m (pound)m
Year ended 31 March 2002
Mobile telecommunications
UK 2,756 398
Germany 875 235
Other countries 595 132
Total mobile telecommunications 4,226 765
Mobile internet services - UK 100 25
Other businesses - UK 54 9
Central overheads and adjustments - 340
Inter-segment eliminations (104) -
Group total 4,276 1,139
Year ended 31 March 2001
Mobile telecommunications
UK 2,706 281
Germany 65 43
Other countries 399 86
Total mobile telecommunications 3,170 410
Mobile internet services - UK 15 5
Other businesses - UK 47 5
Central overheads and adjustments (i) (14) 3,061
Inter-segment eliminations (18) -
Group total 3,200 3,481
Operating Total
profit/(loss) operating
of associates profit/(loss)
and joint
ventures
(pound)m (pound)m
Year ended 31 March 2002
Mobile telecommunications
UK 8 194
Germany - (430)
Other countries - (73)
Total mobile telecommunications 8 (309)
Mobile internet services - UK - (103)
Other businesses - UK - (22)
Central overheads and adjustments - (414)
Inter-segment eliminations - -
Group total 8 (848)
Year ended 31 March 2001
Mobile telecommunications
UK 17 291
Germany (285) (344)
Other countries (18) (109)
Total mobile telecommunications (286) (162)
Mobile internet services - UK - (148)
Other businesses - UK - (17)
Central overheads and adjustments (i) - (3,105)
Inter-segment eliminations - (18)
Group total (286) (3,450)
(i) Includes an exceptional charge of(pound)2,800 million in
respect of impairment of goodwill relating to O2 Germany
3. Exceptional items
2002 2001
(pound)m (pound)m
Exceptional items:
Costs relating to demerger from BT 27 -
Costs relating to business closure
and reorganisation 123 -
Goodwill impairment - 2,800
Write-off of IT systems relating to
integration - 21
150 2,821
The exceptional items in the year ended 31 March 2002 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the business closure and reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet relate to the restructuring of the UK and German operations post demerger and include (pound)87 million in respect of redundancy costs. A review in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the principles of FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 11 (Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and goodwill) was performed as at 31 March 2001 and 31 March 2002. Based on this review performed in 2002, no impairment charge has been made. The review in 2001 resulted in an exceptional charge to operating costs of (pound)2,800 million in respect of O2 Germany (formerly Viag Interkom GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) & Co). The charge has been allocated to the goodwill arising on the acquisition of the remaining 55% interest in O2 Germany that was purchased during the year ended 31 March 2001. The goodwill impairment does not give rise to any cash flows.
4. Tax on loss on ordinary activities
2002 2001
(pound)m (pound)m
Current tax
United Kingdom corporation tax at 30% 13 (21)
Tax on Group's share of results
of associates (2) (7)
Adjustments in respect of prior periods 2 (1)
Non-UK tax (2) -
Total current tax credit/(charge) 11 (29)
Deferred tax at 30%
Origination and reversal of
timing differences 6 (49)
Adjustments in respect of prior periods 6 8
Total deferred tax credit/(charge) 12 (41)
Tax credit /(charge) on loss on
ordinary activities 23 (70)
5. Loss per share Basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share has been calculated by dividing the loss for the financial year of (pound)850 million (2001; (pound)3,533 million) by 8,670 million shares (2001: 8,670 million), being the weighted average number of ordinary shares in issue since demerger. For 2001 the number of ordinary shares is based on the issued share capital of BT at the date of demerger and a one for one allotment A portion, share, or division. The proportionate distribution of shares of stock in a corporation. The partition and distribution of land. ALLOTMENT. Distribution by lot; partition. Merl. Rep. h.t. at that date. 6. Acquisitions In February 2001, Telenor Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia. exercised a put option to sell its remaining 49.5% interest in O2 Communications (Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. ) Limited (formerly Digifone mmO2 Limited) to the Group and this transaction was completed in April 2001, following approval by the regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. . The total consideration for this stake was (pound)877 million including expenses resulting in additional goodwill of (pound)884 million. The consideration includes (pound)17 million payable to the former Managing Director for his 2% stake in the non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto shares of O2 (Communications) Ireland Limited, of which (pound)13 million is payable after the year end. The financial information contained in this preliminary announcement does not constitute the Group's statutory financial statements for the years ended 31 March 2002 or 31 March 2001. The financial information is derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the statutory consolidated financial statements of the Group for the year ended 31 March 2002 which were approved by the Board of Directors on 28 May 2002. The auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together have reported on those financial statements; their report was unqualified and did not contain a statement under either section 237 (2) or (3) of the Companies Act 1985. The 2002 financial statements will be delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. following the Company's Annual General Meeting. APPENDIX appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity. 1 : BUSINESS REVIEW 1. O2 UK (formerly BT Cellnet) Second half results Service revenues in the second half grew by 9% to (pound)1,225 million. Total revenue was (pound)1,388 million and EBITDA increased by 31% in the second half to (pound)343 million. The EBITDA margin was 24.7%, up from 19.1% in the second half of last year. Capital expenditure in the second half was (pound)299 million, (pound)197 million lower than in 2001. Full year results Service revenues for the full year grew by 10% to (pound)2,426 million. Total revenue was (pound)2,756 million and EBITDA for the full year increased by (pound)115 million to (pound)670 million. The full year EBITDA margin advanced to 24.3%, from 20.5% in 2001. Full year capital expenditure was (pound)556 million, 23% below the previous year. During the year the total number of customers increased by 4.7% to 11,084 million, of which 32% were contract customers. Annual contract ARPU increased by 2.7% to (pound)498. The average subscriber acquisition cost (SAC Sac: see Sac and Fox. SAC - 1. An early system on the Datatron 200 series. [Listed in CACM 2(5):16 (May 1959)]. ) increased slightly to (pound)90, from (pound)87 in 2001, due to the richer mix of customers acquired during the year. Revenue from data services grew substantially during the year, and the proportion of service revenues generated by data doubled to 11.8%. The number of SMS messages SMS message SMS n → (message m) SMS m handled increased to 3.4 billion, from 1.6 billion in 2001. Fourth quarter key performance indicators Key Performance Indicators (KPI) are financial and non-financial metrics used to quantify objectives to reflect strategic performance of an organization. KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. O2`s turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in the UK contract market was sustained, with 68,000 new contract customers added during the quarter. March was O2 UK's highest net connections month in the contract market since November 1999. The contract churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. fell to 31%, from 34% in the previous quarter, reflecting the continued success of O2 UK's customer retention programmes. The contract SAC was significantly below the previous quarter. Contract ARPU continued to improve, to (pound)498 from (pound)493 in the previous quarter. O2 UK's focus on higher value customers, and not pursuing uneconomic connections, was reflected in pre-pay ARPU, which increased to (pound)108 from (pound)105 in the third quarter, and in a lower pre-pay SAC. There was a net decline of 59,000 in the pre-pay customer base in the quarter. Blended 12-month ARPU showed a marginal (jargon) marginal - 1. Extremely small. "A marginal increase in core can decrease GC time drastically." In everyday terms, this means that it is a lot easier to clean off your desk if you have a spare place to put some of the junk while you sort through it. 2. increase, to (pound)231 from (pound)230 in the previous quarter. The blended SAC was in line with the previous two quarters. Data revenues continued to grow strongly and represented 13.8% of O2 UK's total service revenue, compared to 13.4% in the previous quarter. More than a billion SMS messages were carried and O2 ended the quarter as market leader for this service. Business developments O2 UK initiated a restructuring exercise, which aims to reduce the permanent workforce from 7,500 to 6,100 people by the end of 2002/03. This programme will affect back office, technical and administrative functions across the business, and will also include closure of 133 of the existing 320 retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → . A new integrated systems platform is being developed which will enhance O2 UK's customer care capability and enable more targeted marketing. In addition, the effective retention and upgrade schemes that enabled contract churn churn: see butter. to be reduced substantially in 2002 are being developed further and their coverage extended. A roaming agreement was signed with Hutchison Hutchison may refer to: People with the surname Hutchison:
O2 UK's 3G network sharing agreement with T-Mobile is operating well, with good progress made in obtaining 3G sites. 2. O2 Germany (formerly Viag Interkom) Second half results Service revenues in the second half grew by 24% to (pound)366 million. Total revenue increased by 18% from the second half of 2001 to (pound)455 million, and the EBITDA loss was reduced to (pound)(52) million, from (pound)(128) million in the same period last year. This also represented a major improvement on the (pound)(114) million EBITDA loss in the first half of the year. Capital expenditure in the second half was reduced to (pound)89 million from (pound)306 million in the second half of 2001. Full year results Service revenues for the full year were (pound)696 million compared to (pound)523 million in the previous year. Total revenue for the full-year increased by 29% to (pound)875 million, and the EBITDA loss for the full year was more than halved to (pound)(166) million. Capital expenditure for the full-year was (pound)250 million, down from (pound)490 million in 2001. The total customer base increased by 23% to 3.891 million, with 70% of this growth coming in the second half. At the year-end O2's share of the German market was approximately 7%. The blended SAC for the year was (pound)95, down from (pound)142 in the previous year, with the level of pre-pay SAC halved. O2 Germany maintained its rich customer mix, with contract customers representing just over 50% of the total base at both the start and the end of the year. After falling in the first half, ARPU steadied and then turned upwards towards the end of the year. Annual blended ARPU was (pound)195. Revenue from data represented 13.3% of O2 Germany's full year service revenues. Fourth quarter key performance indicators The momentum built up by O2 in the German market since October October: see month. was maintained into the fourth quarter. The total customer base grew by 6.4%, with 235,000 net new customers added. This represented the majority of total net additions in the German market during the quarter. Contract customers represented around 46% of O2 Germany's net additions, reflecting the continuing appeal of the differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: "Genion ge·ni·on n. The point at the tip of the mental spine of the mandible. Home" home-zone service, which accounted for around 75% of the contract gross additions. The average post-pay SAC increased marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. over the previous quarter, but remained below the average for the full year. Contract ARPU increased to (pound)313, from (pound)306 in the third quarter. This reflects the higher ARPU generated by the Genion Home service, which at the end of the quarter made up 47% of O2 Germany's total contract customer base. The 7% growth in O2 Germany's pre-pay customer base was driven by attractive and competitive promotional offers. The pre-pay SAC was unchanged from the third quarter, and well below the average for the full year. Pre-pay ARPU at (pound)71 was marginally ahead of the previous quarter. O2 Germany's blended ARPU was (pound)195, up 1.5% on the previous quarter, reflecting the increase in both pre-pay and post-pay ARPU. The blended SAC remained below the average for the full-year. Pre-pay and post-pay churn were both lower than in the third quarter. Data revenues grew significantly and were 14.5% of service revenues in the quarter, compared to 12.8% in the previous quarter. The total number of SMS messages grew by 14% over the previous quarter, to 286 million. Business developments To reinforce re·in·force v. 1. To give more force or effectiveness to something; strengthen. 2. To reward an individual, especially an experimental subject, with a reinforcer subsequent to a desired response or performance. 3. the drive for cost efficiency, O2 Germany implemented a programme to reduce headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. by an additional 500, to approximately 3,400 people. This involves streamlining internal business processes and retail operations. The UMTS network sharing agreement with T-Mobil, which aims to deliver substantial capital expenditure savings as well as accelerate the roll-out of 3G network coverage, is progressing well. O2 Germany has already sourced over 3,000 locations for 3G base stations. 3. O2 Netherlands (formerly Telfort) Half year results Service revenue in the second half grew to (pound)100 million, from (pound)57 million in the previous year. Total revenue was (pound)111 million, compared to (pound)62 million in the second half of 2001. O2 Netherlands achieved positive EBITDA for the first time in the second half, delivering (pound)3 million of EBITDA on total revenue of (pound)111 million. The EBITDA improvement over the same period last year was (pound)59 million. Capital expenditure was (pound)29 million, down from (pound)53 million in the second half of 2001. Full year results Service revenue for the full year grew by 83% to (pound)183 million. Total revenue grew by 75% to (pound)200 million and the EBITDA loss for the full-year was (pound)(51) million, more than halving the previous year's loss of (pound)(104) million. Capital expenditure in the full year was reduced by 23% to (pound)97 million. During the year the customer base grew from 0.792 million to 1.255 million, a gain of over 58% which moved O2 from fifth into third place in the Dutch market. The major component of this customer growth was the acquisition of more than 475,000 active Postbank Postbank may refer to postal savings system operates in these countries:
A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: and providing a suite of mobile banking capabilities. By the year-end these customers had used WAP or SMS to make more than two million balance enquiries over the O2 Netherlands network. The cost of acquiring the Postbank customers was in line with O2's SAC for its other pre-pay customers in the Netherlands, and the average SAC for the full-year was (pound)75, a significant reduction on the SAC of (pound)99 incurred in 2001. O2 Netherlands' blended ARPU increased from (pound)151 to (pound)163 during the year, with improvements in both pre-pay and post-pay ARPU. Data as a proportion of service revenue was 8.9% for the full year, and the number of SMS messages sent over the O2 Netherlands network more than doubled to 288 million. Fourth quarter key performance indicators Blended ARPU in the quarter was 2% ahead of the third quarter. The improvement was particularly encouraging in the pre-pay segment, where ARPU increased by 6% to (pound)84, which was higher than in any of the three previous quarters. This reflects the success of O2's promotional campaigns, aiming to stimulate stimulate /stim·u·late/ (stim´u-lat) to excite functional activity. stim·u·late v. To arouse a body or a responsive structure to increased functional activity. voice and data usage. There was a 46,000 reduction in O2's customer base in the Netherlands in the fourth quarter, reflecting the competitiveness of the market as a whole. The decline was seen in gross additions, rather than increased churn, which was almost unchanged on the previous quarter. The average subscriber acquisition cost increased. The number of SMS messages increased by 38% compared to the third quarter, to a total of 110 million. However data as a proportion of service revenues dropped to 9.2% from 10.0%. Business developments O2 Netherlands signed a letter of intent with Ericsson Er·ics·son , John 1803-1889. American engineer and inventor who built the first ironclad warship, the Monitor (1862), which engaged the Confederate Merrimack in a famous naval battle of the Civil War (March 9, 1862). to outsource outsource verb To assign specific work to a 3rd party for a specific length of time at an set price and service level Managed care To use outside labor to perform functions–billing and collections, accounting, janitorial services, ER the management of all its mobile network operations. This initiative will improve network efficiency, accelerate development of multimedia services, and achieve significant operating cost savings. The pre-pay customer service centre was also out-sourced, which led to an increase in service levels while at the same time accommodating the substantial growth in the customer base from the Postbank promotion. Both initiatives leave O2 Netherlands free to focus on developing and delivering the products and services its customers want, in a flexible and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. manner. Wholesale agreements were signed during the year with Tele2 and with debitel Netherlands. Under the enhanced service provider See ESP. agreement with debitel, O2 Netherlands will rent network capacity to debitel and provide it with access to systems that support text messaging Sending short messages to a smartphone, pager, PDA or other handheld device. Text messaging implies sending short messages generally no more than a couple of hundred characters in length. , voicemail See voice mail. and customer management. A Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. was signed with KPN KPN Koninklijke PTT Nederland (Royal Dutch Telecom) KPN Konfederacja Polski Niepodleglej (Polish conservative party) covering network sharing during the build-out of both operators' UMTS networks Beginning in 2003 under the name 3, Hutchison Whampoa, a large port operator, has gradually launched their startup UMTS networks worldwide including Australia, Austria, Denmark, Hong Kong, Italy, United Kingdom, Ireland and Sweden. . 4. O2 Ireland : O2 Communications (Ireland) Limited or O2 Ireland is a GSM and 3G mobile telecommunications operator in Ireland. It is a subsidiary of Telefónica-owned Telefónica O2 Europe Plc. (formerly Digifone) Half year results Service revenues in the second half were (pound)187 million. Total revenues were (pound)202 million and EBITDA in the half year was (pound)63 million, up 75% on 2001. The EBITDA margin improved to 31.2%, from 21.8% in the second half of 2001. Capital expenditure in the second half was (pound)41 million, down from (pound)60 million the previous year. Full year results Service revenues in the full year were (pound)367 million, up from (pound)289 million last year. Total revenue for the full year grew by 28% to (pound)395 million. EBITDA increased to (pound)122 million, from (pound)68 million the year before. The full year EBITDA margin improved to 30.9%, from 22.0% in 2001. Capital expenditure in the full year was reduced by 33% to (pound)85 million The total customer base grew by 21% during the year to 1.18 million, with 30% of the year-end base comprising contract customers. The blended SAC during the year was (pound)75, compared to (pound)95 in 2001, with a 9% increase in the contract SAC more than offset by a 36% reduction in the pre-pay SAC. Annual pre-pay and contract ARPU remained substantially the highest in the Group, at (pound)197 and (pound)622 respectively. A total of 667 million SMS were carried during the year, almost double the total in the previous year. As a proportion of full year service revenue, data increased to 10%, from 6% in 2001. Fourth quarter key performance indicators O2 Ireland added 18,000 net new customers during the fourth quarter, to bring the total customer base to 1.180 million. Lower gross customer additions, and higher pre-pay churn, reflected the high penetration The successful unauthorized breach of a security perimeter. See penetration test. and competitiveness of the Irish market. O2 Ireland reduced its blended SAC in the quarter by 12% compared to the third quarter, with the pre-pay SAC almost halved, offsetting a small increase in the post-pay SAC. ARPU remained broadly flat in the quarter, with blended ARPU of (pound)329 in line with the two previous quarters. This pattern was similar in both the pre-pay and post-pay segments. SMS usage continued to grow strongly, with 204 million messages being sent in the quarter, up 14% on the previous quarter. This represents approximately 58 SMS per customer per month. Revenue generated from data grew broadly in line, and accounted for 11.5% of O2 Ireland's service revenue in the fourth quarter compared to 10.4% in the previous quarter. Business developments In March, O2 Ireland applied for both the `A' and `B' 3G mobile phone licences that were put out to tender in December. The results of the tender process are due to be announced To be announced (TBA) A contract for the purchase or sale of an MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered. in June June: see month. 2002. If O2 Ireland's application is successful, roll-out of the 3G service could begin in the first half of 2004. A restructuring of the retail operation was announced in May. This involves the integration of the four existing retail businesses into a new company, O2 Retail. The restructuring enables O2 Ireland to adopt one common retail approach, and maintain a strong competitive position in the market. It also allows removal of duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun) 1. the act or process of doubling, or the state of being doubled. 2. of stores, a reduction in overhead costs overhead costs see fixed costs. , and a more focused sales approach through the retail channel. 5. O2 Online (formerly Genie) Second half results Total revenue in the second half was (pound)61 million, more than four times the revenue generated in the second half of 2001. 36% of this revenue was generated from third-party business, with the remainder being generated from the O2 network operators. The second half EBITDA loss was reduced sharply, to (pound)(13) million, from (pound)(94) million in the previous year. Capital expenditure in the second half was reduced to (pound)18 million, from (pound)29 million in the same period last year. Full year results Total revenue for the year was (pound)100 million, an increase of (pound)85 million over the previous year. (pound)33 million was generated externally. The EBITDA loss for the full year was (pound)(68) million, more than halving the previous year's loss. Capital expenditure was (pound)59 million, an increase on the previous year, reflecting investment in billing systems and platforms for new messaging services. Fourth quarter key performance indicators The number of WAP active users during the quarter was 1.64 million and the total number of WAP page impressions increased by 38% to 622 million. Excluding the impact of the closure of the portal operations in Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , France and Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , the number of Web portal See portal. registered accounts increased by 18% to 4.869 million. By the end of the quarter O2 Online had attracted more than 300,000 high value mobile customers on to the O2 UK network. The complete customer relationship, including purchase, care and billing, is managed via the O2 Online portal. Customers on O2 Online tariff packages are significantly higher users of data services than the industry average, with 99% sending text messages and 42% being active WAP users, and this is reflected in their pre-pay and post-pay ARPU being above the O2 UK average. The SAC for Online customers is significantly below the O2 UK average. Business developments Following demerger O2 created a single mobile data business focused on building and marketing O2's portfolio of data products and services to mobile users across the O2 footprint. This business incorporates both on-line (formerly Genie) and off-line See offline. (jargon) off-line - (Or "offline") 1. Not directly connected to the computer (e.g., an off-line tape drive), or with connection suspended ("take the printer off-line"). Contrast background, on-line. 2. Not now or not here. products, for consumers and business users. O2's web and mobile portals remain among the leading in Europe. O2 Online rationalised its operations, exiting France, Spain and Italy, to focus on the O2 footprint. O2 Online's portfolio of data products and services aims to both generate revenue and at the same time attract and retain high value customers onto the O2 networks. During the year O2 drove increased data usage through development of a strong portfolio of web and WAP applications, compelling content and innovative messaging products. Building on the success of SMS, in February a multi-platform Instant Messaging Exchanging text messages in real time between two or more people logged into a particular instant messaging (IM) service. Instant messaging is more interactive than e-mail because messages are sent immediately, whereas e-mail messages can be queued up in a mail server for seconds or product was launched, and a multi-media messaging service is expected to be launched later this year. During the year, as part of the drive for operational efficiency and long-term cost savings, the on-line platforms were deployed across the Group, and platform operations out-sourced. 6. Other businesses Manx Manx (măngks), virtually extinct language belonging to the Goidelic or Gaelic group of the Celtic subfamily of the Indo-European family of languages. The last native speaker, Ned Madrell, died in 1974. Full year turnover grew by 13% to (pound)43 million. EBITDA for the full year increased by 33% to (pound)16 million, and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before goodwill and exceptionals was (pound)11 million, compared to (pound)8 million in 2001. Full year capital expenditure was (pound)5 million compared to (pound)17 million in the previous year. At the year end the business had 47,000 mobile customers, 45% of them post-pay. In December Manx launched the first fully operational UMTS service in Europe. It offers a number of advanced broadband applications on its 3G network, including location-based services See mobile positioning. , video telephony See videophone. , on-line gaming, video surveillance and mobile office applications. Serving as mmO2's 3G test-bed, Manx provides the Group with in-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis experience and insight into the challenges of 3G network development and roll-out, as well as market testing new products and mobile data services. Airwave Capital expenditure for the full year was (pound)90 million, compared to (pound)52 million in 2001. Revenue was (pound)11 million, reflecting the commissioning of the service in several police forces towards the end of the year. Roll-out of Airwave's TETRA tetra: see characin. tetra Any of numerous attractively coloured freshwater South American and African fishes (family Characidae), often kept in home aquariums. Tetras are small, lively, hardy, and unaggressive. network continues, with the service now introduced into 6 of the UK's 54 police forces, all of which are covered by the contract. The Metropolitan Police Service is expected to switch to Airwave in late 2003, with full national rollout expected to be completed by 2005. The Airwave service is currently being marketed to other public safety users, such as fire services
Fire Services (Chinese:消防) is a Hong Kong football club. The majority of the players are working for the Fire Services Department in Hong Kong and playing for the club on , ambulance am·bu·lance n. A specially equipped vehicle used to transport the sick or injured. ambulance Emergency medicine A vehicle for transporting a Pt to or from a hospital or medical center, which is equipped with supplies and health trusts and the Ministry of Defence. During the year the Lancashire Fire and Rescue service The Lancashire Fire and Rescue Service is the county-wide, statutory emergency fire and rescue service for the Shire county of Lancashire, England. Lancashire Fire & Rescue Service is made up of 6 Area Commands as follows: Northern, Southern, Eastern, Western, Central and signed a contract, and the Ministry of Defence made Airwave the de facto [Latin, In fact.] In fact, in deed, actually. This phrase is used to characterize an officer, a government, a past action, or a state of affairs that must be accepted for all practical purposes, but is illegal or illegitimate. military standard for secure UK radio mainland Mainland. 1 Island (1991 pop. 14,150), 178 sq mi (461 sq km), N Scotland. The largest of the Orkney Islands, it is also called Pomona. Kirkwall, the seat of the Orkney Islands council area, is on the island. radio communications.
APPENDIX 2 - FOURTH QUARTER KEY PERFORMANCE INDICATORS
1. Customer numbers (i)
(`000) Customers at Net additions Customers at
31 Dec. 2001 during period 31 March 2002
O2 UK
Pre-pay 7,601 (59) 7,542
Post-pay 3,474 68 3,542
Total 11,075 9 11,084
O2 Germany
Pre-pay 1,785 127 1,912
Post-pay 1,871 108 1,979
Total 3,656 235 3,891
O2 Netherlands
Pre-pay 1,070 (48) 1,022
Post-pay 231 2 233
Total 1,301 (46) 1,255
O2 Ireland
Pre-pay 807 17 824
Post-pay 355 1 356
Total 1,162 18 1,180
Manx
Pre-pay 23 3 26
Post-pay 20 1 21
Total 43 4 47
mmO2 Group
Pre-pay 11,286 40 11,326
Post-pay 5,951 180 6,131
Total 17,237 220 17,457
Pre-pay % 65.5% 18.2% 64.9%
Post-pay % 34.5% 81.8% 35.1%
(i) Customer is classified as an active SIM card i.e. a call made
or received within 3 months
2. Average revenue per user (ARPU)
((pound)) 3 months 3 months 3 months 3 months
ended ended ended ended
30 June 30 September 31 December 31 March
O2 UK
12-month rolling
Pre-pay 110 108 105 108
Post-pay 486 489 493 498
Blended 251 238 230 231
Monthly average
Pre-pay 9 9 9 9
Post-pay 41 43 42 40
Blended 19 20 19 19
O2 Germany
12-month rolling
Pre-pay na (i) na (i) 70 71
Post-pay na (i) na (i) 306 313
Blended na (i) na (i) 192 195
Monthly average
Pre-pay 5 5 8 6
Post-pay 24 27 27 26
Blended 15 16 18 17
O2 Netherlands
12-month rolling
Pre-pay 82 83 79 84
Post-pay 477 487 487 492
Blended 158 165 160 163
Monthly average
Pre-pay 7 7 6 8
Post-pay 41 41 40 42
Blended 15 14 12 14
O2 Ireland
12-month rolling
Pre-pay 214 190 195 197
Post-pay 630 623 624 622
Blended 366 330 331 329
Monthly average
Pre-pay 18 17 17 16
Post-pay 53 52 51 51
Blended 30 28 28 27
(i) Comparable data not available - annualised six-month ARPU
previously reported.
3. Average revenue per user (ARPU) - EURO
(Euro) 3 months 3 months 3 months 3 months
ended ended ended ended
30 June 30 September 31 December 31 March
O2 UK
12-month rolling
Pre-pay 179 175 169 174
Post-pay 790 793 793 806
Blended 408 386 370 374
Monthly average
Pre-pay 14 15 14 15
Post-pay 66 69 68 66
Blended 31 32 31 31
O2 Germany
12-month rolling
Pre-pay na (i) na (i) 113 115
Post-pay na (i) na (i) 493 507
Blended na (i) na (i) 309 315
Monthly average
Pre-pay 8 8 12 10
Post-pay 39 43 44 43
Blended 24 26 29 27
O2 Netherlands
12-month rolling
Pre-pay 133 135 127 136
Post-pay 776 790 783 797
Blended 257 268 257 264
Monthly average
Pre-pay 12 12 9 13
Post-pay 66 66 65 68
Blended 25 23 19 23
O2 Ireland
12-month rolling
Pre-pay 348 308 314 319
Post-pay 1,025 1,010 1,004 1,008
Blended 595 535 532 533
Monthly average
Pre-pay 30 27 27 27
Post-pay 87 84 82 83
Blended 50 45 45 44
Euro Rates
Quarterly 1.6268 1.6149 1.6110 1.6273
Annually 1.6261 1.6214 1.6084 1.6200
(i) Comparable data not available - annualised six-month ARPU
previously reported.
4. O2 Online metrics
(thousand) 3 months 3 months 3 months 3 months
to to to to
30 June 30 Sept. 31 Dec. 31 March
Web portal
registered
accounts 5,322 5,752 5,807 4,869
Of which continuing
businesses 3,557 3,697 4,109 4,869
(i.e. excluding
Spain, France,
Italy)
(million)
WAP page
impressions 309 463 452 622
5. WAP Active Users
(thousand) 3 months 3 months 3 months 3 months
ended ended ended ended
30 June 30 September 31 December 31 March
O2 UK 788 820 872 928
O2 Germany 270 272 301 294
O2 Netherlands na na 311 264
O2 Ireland na 83 122 155
Total - - 1,606 1,641
Growth - - - +2.2%
6. SMS Messages
(million) 3 months 3 months 3 months 3 months
ended ended ended ended
30 June 30 September 31 December 31 March
O2 UK 639 754 931 1,060
O2 Germany 205 217 250 286
O2 Netherlands 38 60 80 110
O2 Ireland 134 150 179 204
Manx 2 4 5 6
mmO2 total 1,018 1,185 1,445 1,666
Growth +16.4% +22.0% +15.3%
APPENDIX 3: FULL YEAR KEY PERFORMANCE INDICATORS
1. O2 UK
12 Months to 31 12 Months to 31
Mar. 2002 Mar. 2001
Customers (`000)
Pre-pay 7,542 7,134
Post-pay 3,542 3,455
Total 11,084 10,589
ARPU (pound)
Pre-pay 108 114
Post-pay 498 485
Blended 231 269
SAC (pound)
Pre-pay 53 63
Post-pay 180 184
Blended 90 87
Churn
Pre-pay 32% 24%
Post-pay 31% 44%
Blended 32% 32%
2. O2 Germany
12 Months to 31 12 Months to 31
Mar. 2002 Mar. 2001
Customers (`000)
Pre-pay 1,912 1,560
Post-pay 1,979 1,607
Total 3,891 3,167
ARPU ((pound))
Pre-pay 71 na (i)
Post-pay 313 na (i)
Blended 195 na (i)
SAC ((pound))
Pre-pay 44 87 (ii)
Post-pay 160 220 (ii)
Blended 95 142 (ii)
Churn
Pre-pay 35% na (i)
Post-pay 21% 16%
Blended 28% na (i)
(i) Comparable data not available - registered customer basis
previously reported.
(ii) Data for the 12 months to 31 December 2000 only.
3. O2 Netherlands
12 Months to 31 12 Months to 31
Mar. 2002 Mar. 2001
Customers (`000)
Pre-pay 1,022 617
Post-pay 233 176
Total 1,255 793
ARPU (pound)
Pre-pay 84 80
Post-pay 492 469
Blended 163 151
SAC (pound)
Pre-pay 55 88
Post-pay 198 138
Blended 75 99
Churn
Pre-pay 27% na (i)
Post-pay 27% 32%
Blended 27% na (i)
(i) Comparable data not available.
4. O2 Ireland
12 Months to 31 12 Months to 31
Mar. 2002 Mar. 2001
Customers (`000)
Pre-pay 824 641(ii)
Post-pay 356 332
Total 1,180 973(ii)
ARPU ((pound))
Pre-pay 197 na (i)
Post-pay 622 637
Blended 329 na (i)
SAC ((pound))
Pre-pay 44 69
Post-pay 202 185
Blended 75 95
Churn
Pre-pay 44% na (i)
Post-pay 23% na (i)
Blended 38% na (i)
Comparable data not available - registered customer basis
previously reported. Active pre-pay base estimated
mmO2 mmO2 has 100% ownership of mobile network operators in four countries - the UK, Germany, the Netherlands and Ireland - as well as a leading mobile internet Refers to gaining access to the Internet using a lightweight, handheld device. See Mobile IP, PDA, smartphone and mobile TV. portal business. All of these businesses have now been re-branded as O2. Additionally, the company has operations on the Isle of Man (Manx Telecom Manx Telecom (Manx: Chellinsh Vannin) is the primary telecommunications provider in the Isle of Man. It is a wholly owned subsidiary of Telefónica O2 Europe plc., part of the global Telefónica group. ). mmO2 was the first company in the world to launch and rollout a commercial GPRS (or 2.5G) network and has secured third generation mobile telephony ("3G") licences in the UK, the Netherlands, and Germany. mmO2 has also applied for a 3G licence in Ireland. mmO2 has approximately 17. 5 million customers and some 14,000 employees, with revenues for the year ended 31 March 2002 of (pound)4.276 billion. Data represented 13.4% of total service revenues in the quarter ending 31 March 2002. |
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