The mobile operator O2 said its entry into broadband is likely to be further delayed after it unveiled figures showing it had added just 34,000 new UK mobile customers in its second quarter.

Britain’s biggest mobile group by customer numbers said its broadband launch is now likely to slip into early October - ten months later than planned.

The delay was revealed as the group unveiled interim figures which showed a poor customer uptake in the UK and a failure to get on top of problems in its key Germany division.

In the UK an exodus of cheaper pre-pay customers saw the group add just 34,000 customers in the quarter to the end of June - down from 470,000 at the same time last year and one of its lowest ever customer addition numbers in a quarter.

By contrast Vodafone added 236,000 new customers in the same period.

Peter Erskine, head of the mobile group, insisted the UK was performing strongly. Revenue growth, he pointed out, was up 10.6 per cent to €1.8 billion while average revenues per user also increased to £23.4 from £22.8 last year.

The group is focusing, it said, on locking-in its existing customers and on maintaining a strong margin rather than adding new customers.

In Germany meanwhile O2 has been forced to cut its guidance with revenue growth for the year now expected to be between 7 per cent and 10 per cent, compared to the 14 per cent to 17 per cent range previously guided by the company.

Operating income before depreciation and amortisation is now expected to hit between 21 per cent and 25 per cent, compared to the 24 per cent to 27 per cent previously guided.

However overall guidance for the Spanish-owned mobile operator remains unchanged for the year.

O2 blamed “challenging conditions” for the cuts in Germany. It said it hoped to see a return to growth before the financial year is out, despite reporting a 2.9 per cent second-quarter drop in sales.

Around 40 ‘no-frills’ mobile virtual operators - those which do not own their own network but piggyback on someon else's - are competing in Germany for customers.

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