Voda UK loses 159,000 customers

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Vodafone has lost 930,000 customers in the second quarter of the year, 159,000 of which are UK customers while global churn reached 62.2 per cent.

It reported prepay churn of 57.9 per cent and contract churn of 18 per cent in the UK.

Vodafone UK customers totalled 18.5 million on June 30, 2009 down from 18.6 million at April 1.

Group revenue during the second quarter was up 9.3 per cent to £10.7 billion, while the UK accounted for £1.19 billion, a decrease of 3.9 per cent year on year.

UK service revenue also declined by 3.9 per cent from £1.23 million to £1.19 million compared with European service revenue which increased from £6.8 million to £7.1 million during the same time.

Service revenue in the UK consisted of £7.26 million from voice, down from £8.22 million year on year, an increase in data revenue from £1.1 million to £1.4 million and messaging revenue which remained constant at £2.4 million.

Vodafone said second quarter service revenue in Europe has been impacted by reduced mobile termination rates in the UK, lower roaming prices and reduced travel across the region.

In fixed line, Vodafone generated over 200,000 broadband additions in Europe, but service revenue in the UK declined by £1 million to £7 million. 

Chief executive Vittorio Colao said: “In the first quarter the service revenue trend in Europe was consistent with the previous quarter and we continued to see good growth in India and South Africa.

“Our total communications strategy is delivering well, with organic data revenue up 19 per cent and organic fixed line revenue seven per cent ahead of the comparative period.

“Free cash flow generation was strong at £1.9 billion up 21 per cent. The Group has reaffirmed its guidance for the full year.”

Vodafone said Europe’s enterprise revenue dropped as a result of the economic pressure on business customers.

In November 2008, Vodafone announced it would aim to reduce operating costs by £1 billion by the end of the 2011 financial year. It claims that 65 per cent of the target will be generated by the end of the current financial year.

 

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