Vodafone posts 14 pc revenue increase

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Vodafone’s Q4 results have shown a group revenue increase of 14.3 per cent to £10.47 billion, although UK revenues were down 0.7 per cent from the same time last year, at £1.226 billion.

The UK business also added 19.166 million net new customers in the last three quarters of 2008, 59 per cent of which were prepay.

Churn for the quarter was 34.6 per cent, down from last quarter’s 38.5 per cent and about the same as the same period the previous year.
ARPU was recorded at £21.50, down £1 from the same period the previous year.

The group’s statement for the UK said: “Excluding the impact of a VAT refund in July 2007, service revenue declined at a lower rate than in the previous quarter, driven by increased wholesale revenue due to the growth in the MVNO business and continued growth from
data services.

“Data revenue growth of 30.9 per cent remained strong in the quarter, driven primarily by increased penetration of mobile PC connectivity and mobile internet services. These positive trends were partially offset by an incremental voice revenue decline resulting from lower voice usage in the prepaid segment.”

The group reported an overall mobile customer base of 289 million at December 31, up 9.5 million in the quarter.

Service revenues in Europe were up 15 per cent, driven by a favourable foreign exchange rate. Service revenue increases were also recorded in Africa and Central Europe (6.1 per cent), Asia Pacific and the Middle East (27.9 per cent), and India (29.6 per cent).

Vodafone chief executive Vittorio Colao (pictured) said: “Our underlying performance showed similar trends to the previous quarter, with pro forma service revenue up 1.4 per cent, including India and at constant exchange rates.

“In the context of the current economic environment, we have continued to implement our strategy, with an emphasis on customer value, mobile data, enterprise and fixed broadband. This has driven increased usage, 25 per cent organic growth in data revenue and over 280,000 fixed broadband additions in Europe. We have also made progress on our plans to reduce costs by £1 billion by March 2011.”

Cost savings of around £500 million are expected to be generated by the end of the 2010 financial year, with the full £1 billion expected to be generated by the 2011 financial year.

The group’s emphasis on customer value offers, mobile data, enterprise and fixed broadband have helped generate a 10.3 per cent organic increase in minutes, organic data revenue growth of 25.3 per cent, positive revenue growth in enterprise revenue and over 280,000 fixed broadband additions in Europe.

 

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