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Per-user revenues fall at The People's Operator
Cause-based mobile virtual network operator (MVNO) The People's Operator updated the market on its trading and operations for the 12 months ended 31 December on Thursday, confirming that revenues for the 2017 financial year would be about £3.55m, in line with management forecasts.
The AIM-traded company said average revenue per user (ARPU) in the UK for the year was £11.02 for pay-as-you-go (PAYG) customers - down from £13.22 in the prior year - and £9.78 for pay monthly customers - a reduction from £12.50.
Average revenue per user in the US was $20.15, down from $22.09.
The People's Operator said average customer acquisition costs remained low at £7.76 in the UK, up from £5.70, and $21.71 in the UK, down from $22.00.
Its overall airtime margin for 2017 was more than five times that of 2016, which the board said reflected ongoing reductions in wholesale rates.
Year-on-year churn more than halved in the UK, and declined by more than 50% in the US.
Average revenue per user figures in the UK were affected - particularly in the second half - through discounting via affiliate platforms, the board noted.
It confirmed that such unprofitable discounting had now been discontinued.