Mobile phone operator MMO2 has raised its UK revenue forecasts after enjoying stronger-than-expected customer growth in the April to June period.
UK customers are spending more
The firm said 603,000 customers were added over the quarter, beating analysts' expectations.
A big rise in UK user numbers led to MMO2 lifting this year's UK revenue growth forecast to 7-10%, compared with its previous forecast of 5-8%.
MMO2 is Europe's sixth-largest mobile phone operator with 21.3 million users.
In February this year, the firm rebuffed a takeover approach from Dutch rival KPN.
The mobile phone market in the UK is fiercely competitive and Hutchison's 3 business has been piling on the pressure in recent months with aggressive pricing plans.
But MMO2 said it had added 261,000 new customers in the UK over the quarter - with more than half of these being higher-paying contract customers.
The success was put down to more spending on marketing and a successful campaign to win business from small to medium-sized firms.
Among UK contract customers, average revenue per user (ARPU) - a key measure for mobile firms - rose to £537 ($993m; 805 euros) a year, up from £525 the previous quarter.
Overall ARPU in the UK rose to £279 - up from £272 in the previous quarter and £25 higher than the same period last year.
In Germany - MMO2's other main market - it added 336,000 customers, with ARPU up to 367 euros (£245) - up from 366 euros in the January to March period.
However, in Ireland ARPU fell to 556 euros, from 559 euros the previous quarter.
MMO2 said that data services - such as photo messaging - now account for 20.9% of service revenues, although the bulk of these are still generated by simple text messages.