EE have reported a 7 percent drop in earnings from 2012 compared to 2011, with a 2.8 percent decline in revenue to £1.67 billion in the fourth quarter of 2012, compared to the same time last year.

The phone operator is planning to close 78 stores during 2013 to promote cost savings, while refurbishing all other high-street stores in order to cement the new EE brand.

The decline comes despite EE becoming the first and only UK operator to launch 4G services in 2012. The exact number of customers who have signed up to the 4G service offered by EE has not been revealed.