Mobile phone giant Everything Everywhere has reported an increase in smartphone contracts as its overall customer numbers stabilised.
The group, formed last year by the merger of Orange and T-Mobile, signed up a net 185,000 contract customers in the three months to September, matching the same period a year ago.
Everything said 65% of its contract customers were now using smartphones - such as Apple's iPhone, Research in Motion's Blackberry and Samsung's Galaxy - up from 61% the previous quarter.
However, Everything said revenues fell by 4.3% to £1.69bn as the increase in more profitable contract customers was offset by 227,000 fewer pay-as-you-go users.
New chief executive Olaf Swantee said the Apple iPhone 4S was selling well after being on the shelves for just under two weeks.