The People's Operator revenue almost doubles in first half

The AIM-traded firm narrowed its loss to £3.95m, from £4.36m a year ago, and had cash and cash equivalents at period end of £3.1m.

Average blended revenue per subscriber in the UK was £12.42 per month, and its average UK customer acquisition costs remained “significantly below industry standards” at an average of £6.34.

The People’s Operator also claimed a low monthly subscriber churn rate of 3.1%.

On the US side of operations, average revenue per subscriber was $21.88, with all customers on pre-paid plans.

Average US customer acquisition costs were $12.27, a figure The People’s Operator claimed was “far below” that of the competition.

Post period end, the company reached agreement for a £1m loan from Barclays Bank on standard commercial terms, for general working capital purposes, repayable over two years.

It also indicated major shareholders intended to provide further funds for growth.

“Over the first half of this year we have seen The People's Operator continue to develop its business and brand in both the UK and the US,” said executive chairman Jimmy Wales.

“Our operations in the US remain encouraging particularly since launching with T-Mobile in April.

“Since April we have focused on our cost base to ensure that the business can operate in line with the available resources and have concentrated our activities on profitable subscribers and users rather than on absolute subscriber numbers.”

Wales said the board was comfortable that it has now proved its ability to attract profitable customers at an acquisition cost far below that of competitors.

“I am delighted that on the back of the progress we have made so far Mrs Juliet Rosenfeld, myself and Mark Epstein, all major shareholders in the company, are prepared to invest further funds to allow us to accelerate the acquisition of profitable customers in both the United States and the UK.

“This is a significant demonstration of faith in the business model and the company.”