The Peoples Operator Regulatory News (TPOP)

The People's Operator plc

("TPO" or the "Company")

Trading Update and Notice of Results

The People's Operator (AIM: TPOP), the cause-based commercial mobile virtual network operator, is pleased to provide the following trading update following the success of its recent launch into the US market.

Highlights

· 47,500 UK subscribers as at 15 September, an increase of 58 per cent since 12 May 2015 and 238 per cent since 1 January 2015.

· Average revenue per user in the UK from 1 April 2015 to 30 June 2015 of £13.63 for PAYM customers and £10.89 for PAYG customers.

· Average customer acquisition costs remain considerably below industry standards at approximately £8.

· Low monthly subscriber churn rate of less than 4 per cent.

· Successful launch in the US on 21 July 2015 with approximately 5,000 subscribers committed to date.

· Social network live in beta state with 79 causes, including Save the Children, World Wildlife Fund and WaterAid UK signed up with more anticipated to join in the coming months.

Jimmy Wales, Executive Chairman, commented:

"Our UK operations continue to grow apace and we are pleased that our subscriber statistics outperform the accepted market norms. The US launch has been well-received and we are encouraged by the high level of interest shown in these early days. We are confident that this strong development will continue during the remainder of 2015 and in to 2016. We are also pursuing a number of exciting initiatives that we expect to make a significant contribution commercially, financially and strategically. The US launch serves as a reminder that TPO has a product that is relevant in numerous geographies."

UK Operations

TPO is pleased to announce that its UK operations continue to gain traction and the Company has 47,500 UK subscribers as at 15 September, representing an increase of 238 per cent from 1 January 2015.

The average monthly revenue per PAYM subscriber from 1 April 2015 to 30 June 2015 was £13.63, reflecting the popularity of the Company's £11.99 summer promotion which offers 4GB data, 1,000 minutes and unlimited texts. Billed revenue for PAYM during August was £206,000, almost double the £105,000 disclosed on 12 May 2015. The average revenue per PAYG customer from 1 April 2015 to 30 June 2015 was £10.89.

The Directors are very confident in the success of the UK operation where subscriber numbers continue to grow at a rapid rate.

US Operations

TPO launched fully in the US on 21 July 2015 following two months of "soft" marketing. The Company currently has only a few weeks' data but is very encouraged by its early results. In particular, the Company has already secured approximately 5,000 commitments to subscribe in the US, which compares very favourably to the original development of the UK division. TPO intends to bring these subscribers on to the network on a phased basis in order to ensure the best possible customer experience while the business remains at a nascent stage

Social Network and Causes

TPO's beta-social network went live on 21st July at www.tpo.com and currently has over 17,000 users. The social network enables users to share experiences and follow and donate to causes. TPO already has 79 causes signed up to utilise the website and anticipates that this number will grow strongly in the coming months.

Market Updates

In order to ensure regular operational metrics the Company will, from 31 December, provide quarterly updates as to subscriber numbers, average revenue per user, customer acquisition costs and other key data.

Notice of Results

The Company will release its interim results for the six months ended 30 June 2015 on Tuesday 29 September 2015.

For further information

About The People's Operator

The Company was founded in 2012 and currently offers customers pay monthly ("PAYM") and pay-as-you-go ("PAYG") mobile contracts. These contracts are competitively priced and allow users to direct 10% of their monthly bill to a cause of their choosing at no additional cost to themselves. In addition, The TPO Foundation, a UK registered charity, will receive 25% of the UK trading profits generated by The People's Operator LLP. A similar structure is proposed to be adopted in other countries.

The strategy of the Group is to maintain a low fixed-cost base, small staff numbers and lower levels of advertising and marketing expenditure than its competitors. In addition, as TPO operates as an MVNO, the Group is not expected to be exposed to the high infrastructure costs and large capital investment charges that traditional mobile operators can incur. This strategy is expected to enable the Group to offer customers a highly competitive pricing model with a high quality of service, whilst generating an attractive return to shareholders after donations to causes.

TPO has developed partnerships with community organisations and causes who promote TPO's products to their supporters. Under the direction of Jimmy Wales, the founder of the online encyclopaedia Wikipedia, the Company is also developing an online viral community to expand the global network of mobile phone customers who share in the common belief of supporting causes.

The Directors believe that this strategy is scalable into new markets around the world which offer competitive wholesale mobile network bandwidth prices and where subscriber acquisition and revenue growth can be driven quickly at a low incremental cost once network agreements have been concluded with local network operators.

TPO launched in the US in July 2015 via an agreement with Sprint, the nation's third largest wireless network operator. Following the US expansion, the Directors have identified a number of jurisdictions for future expansion of the TPO offering (Mexico, Brazil, Asia and Europe) and over the next 18 months the Group intends to negotiate a series of operating agreements with established network operators in these regions with a view to replicating the model in an increasing number of countries worldwide.

TPO was admitted to AIM on 4 December 2014 having successfully raised approximately £20 million, before expenses, through a placing at 130p per Ordinary Share which is primarily being used to invest in the development of its viral, on-line global community platform and to provide working capital for expansion.

For more information, visit: https://www.thepeoplesoperator.com.