Tesco Mobile has reported a 40 per cent increase in customer numbers, to more than 300,000, for 2014.
The mobile virtual network operator increased its number of customers by 89,000, to 268,000 pay-as- you-go customers and 33,000 bill-pay customers.
In July 2014, Tesco Mobile reached a milestone of 250,000 customers. This growth continued through the second half of the year, with 119 per cent increase on 2013 for Christmas pay- monthly sales.
Growth has been driven by strong value tariffs, competitive handset price points and additional dedicated Tesco phone shop locations, said Tesco Mobile managing director Elaine Russell.
She said recent growth in bill-pay customers was driven by a number of new offers including a €25 Sim- only tariff (unlimited calls, texts and data) and a €50 tariff, which accounted for nearly 20 per cent of bill-pay sales over Christmas.
“ComReg announced in their last report that we were the fastest growing mobile provider,” Ms Russell said. “I think our value position in the marketplace led to growth.”
Tesco Mobile is a virtual network operator (MVNO) partnership between Tesco and Three, with an estimated market share of 5.9 per cent. The company doubled its retail footprint over the past year; it now has 20 outlets within larger Tesco stores.
Tesco Mobile posted a pre-tax loss of €11,000 for 2013, slipping into the red after a profitable 2012. The firm recorded an operating loss of €12,000 in 2013 compared with an operating profit of €563,000 in 2012.
11% fall in ’13
Accounts filed with the Companies Office show Tesco Mobile recorded a modest loss after revenues fell by 11 per cent to €30.2 million in 2013, while sales costs increased by 8 per cent to €17.7 million.
Ms Russell said she hoped the mobile business could be back on the path to profit this year, following the huge jump in customer numbers.
“We have exceeded all our revenue and budget targets for shareholders,” she said. “We are hoping for 20 to 25 per cent growth this year. That’s what our budget anticipates. However, new entrants could potentially change the marketplace.”
