Telefonica O2 Ireland today said it increased its total customer numbers by 5,200 to reach 1.711 million customers at the end of the second quarter but that the amount of money it makes per customer fell.

Monthly average blended Average Revenue per User (ARPU) for the first six months of 2010 was E37.14, down from E39.55 for the same period last year.

Monthly average ARPU for prepay customers for the first six month of 2010 was E24.33, down from E24.86 for the same period last year, while for post-pay customers it was E55.46 down from E63.50.

Service revenue for Q2 was E193 million, down from E196 million in the previous quarter.

Average monthly minutes of use in the quarter was 231, up from 228 for the same period last year, O2 said.

Data revenue as a percentage of overall service revenue continues to grow, driven by the increase in non-SMS revenues which account for 12.8pc of overall service revenues in Q2. The growing number of smartphone and mobile broadband customers on the O2 network is playing a significant role in the increase in non-SMS revenues. O2 currently has over 146,000 mobile broadband customers.

Overall, 1.659 billion texts were sent in the first 6 months of 2010, up 8.3pc on the same period last year, while 2.347 billion voice minutes were used.

Reflecting the changing ways in which customers are using their phones, O2 launched a new prepay price plan during the quarter offering free social networking on Facebook, Twitter and MySpace, in addition to free calls and texts. In the first six months of 2010, over 80pc of all texts sent by O2 prepay customers were free, while 60pc of all prepay domestic voice minutes used were free. "The trading environment remained very challenging in Q2, and in line with industry trends, we continue to see downward pressure on revenues as customers change their usage patterns and look for greater flexibility and control over their costs. Despite the economic conditions however, O2 grew its customer base in the second quarter, winning 5,200 net new customers. In addition to the progress we have made on attracting new customers, we are particularly pleased with the increase in the number of customers choosing to stay with us. Our customer loyalty initiatives such as O2 Treats and Priority Ticketing for The O2 are proving to be hugely popular, with over 200,000 customers already signed up for Priority Ticketing at The O2," said Paul Whelan, Chief Financial Officer, Telefonica O2 Ireland.