Vodafone has announced plans to increase its cost-cutting by a further £1 billion by 2012 as its half year results reveal that its original £1 billion savings target has been reached a year earlier than anticipated.
The operator reported a drop in UK revenue year on year of £2.1 million, despite the quarterly increase reported in UK subscribers, which now stands at 18,704 million, up 147,000 from the previous quarter. 18.5 per cent of UK subscribers have contracts with the network and 61.4 per cent are prepay users. UK data revenue is up £56 million year on year.
Vodafone Group revenue has increased by 9.3 per cent to £21.8 biillion, something which has been accredited to Vodafone’s existing cost-saving plan and a strong performance from its American joint venture Verizon Wireless. Group EBITDA is up by 2.9 per cent to £7,455 million.
Vodafone chief executive Vittorio Colao (pictured) said: “The £1 billion cost reduction programme is expected to be delivered a year ahead of plan and we have extended this to a further £1 billion of cost savings by 2012. At the same time, we have maintained our capital investment at £2.6 billion in the first half, delivering further improvements in network quality and performance for our customers. We will continue our focus on the delivery of our growth strategy, particularly in data services. We continue to deepen our commercial relationship with Verizon Wireless with joint initiatives around applications, LTE, enterprise customers and BlackBerry devices.”