Profits fell during H1 2019, as the company ramped up capital investment in its 5G network
Three UK saw its total profit margin shrink by 1 per cent in the first half of 2019, as the UK mobile network operator (MNO) continued to invest in its 5G network.
Three UK’s net margin dropped to £721m as it dramatically increased capex by 24 per cent to £155 million, as the company prepares for its 5G network launch in August.
“The second half of 2019 will see the most important and exciting milestone in our history since we launched the UK’s first 3G network in 2003,” said Dave Dyson, chief executive of Three UK.
“Three has a long history of putting UK consumers first and the launch of the UK’s fastest 5G network using our leading 5G spectrum portfolio and investment in world class cloud-based infrastructure means that we can disrupt the UK’s home broadband network, at the same time as serving our datahungry mobile customers,” he added.
Three UK will launch 5G network services later this month, scaling up its operations to reach 25 UK towns and cities by the end of the year.
“Against this backdrop of huge investment in network and IT infrastructure and some dual running costs as we reach this milestone, I am pleased with the underlying strength of the business. Our customer satisfaction score remains the highest of all the MNOs reflected by the low levels of churn,” Dyson said.
Three UK is currently in the process of migrating its customers across to the UK’s fully virtualised, cloud-based, mobile network core. Three has hailed this as a key step in supercharging its 5G network rollout in the UK.
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