O2 UK reported a revenue increase of 4% year on year to £2.8bn with OIBDA up 7.7% to £738m. O2 reported its results yesterday for the second quarter and first half ended 30 June 2010.

At the end of June, the total consumer base of O2 increased by about 4.5% to reach up to 21.6 million customers, mostly driven by firm expansion in the contract segment which sprang up 11.7% year on year. At the end of June, 47% customer base of O2 was contract, after which it recorded about 307000 contracts in addition in the second quarter - a quarter increase of 58%.

O2 has ascribed its growth to firm loyalty of its customers, reflected in its churn rate of 1.1%. The network said that increased acceptance of smartphone also helped them secure customers. Matthew Key, chairman and chief executive of Telefonica Europe said, 'O2 sold more iPhones compared to the same time last year when we had exclusivity and, in total, we have now sold three million iPhones into the UK.'