O2 has reported results for the quarter ending March 31st which shows customer numbers were up by 4.6 percent to 21.4 million which was driven by a 12 percent increase in their contract base reports an article over on mobile today.

As of the end of March 2010 46 percent of O2’s customer base was contract improved by smartphone take up. O2 saw net additions of 195,000 contracts in Q1 with a “best in class” churn of 1.1 percent with a total churn decrease of 0.2 percentage points over the year previous to 2.6 percent.

02 UK’s total ARPU for Q1 showed better performance quarter on quarter recording a 3.1 percent decline year on year in total currency to €24 year on year in Q4 of 09 while data ARPU showed a year on year increase in local currency of 7.2 percent to €9.6 improving over 6.2 percent year on year growth they reported in Q4 of 09.

Traffic in Q1 of 2010 was up 10.6 percent year on year at 14,155 million minutes which reflects a significant uptake of contract customers and improved trends in roaming traffic.

O2 revenue was up 2.1 percent year on year in local currency to €1,634 million while mobile services revenues were up 9 percent year on year to €1,503 million.