Vodafone UK recovery continues


Vodafone added revenue, profit and customers in the UK in the first half of its 2010 financial year

Vodafone UK saw revenue jump to £2.593 billion in the first six months of 2010, from £2.513 billion in the same period a year ago.

UK EBITDA was also up, from £583 million in the year-ago period to £599 million in the six months to September 30. Vodafone’s UK adjusted profit increased by £62 million to £137 million.

Vodafone said UK customer numbers reached 18.976 million at the end of its second financial quarter, up by 122,000 in the three months to September 30. Vodafone said it increased contract customers by 281,000 during Q2, and shed 159,000 prepay numbers.

Contract churn was down from 18 per cent to 16.1 per cent year on year. Churn for prepay was 59.1 per cent for Q2.

It said service revenues over the past 12 months have grown from -6.2 per cent in Q2 2009 to 5.2 per cent in Q2 2010. It returned to the black for service revenues in Q1, ending June with 0.7 per cent growth.

Vodafone said its performance was helped by smartphone and data sales. Data revenues increased by 27 per cent year on year to £184 million. Messaging revenue was also up, from £243 million to £282 million. Fixed line revenues remained at £8 million.

It said following good performances across its businesses, including its Verizon Wireless interest, it expects adjusted operating profit for the 2011 financial year to be in the range of £11.8 billion to £12.2

Vodafone Group said revenue for the period was £22.603 billion, up 3.9 per cent, and 1.8 per cent in organic terms. It adjusted operating profit was £6.069 billion, up 2.7 per cent.

Group chief executive Vittorio Colao (pictured) said the company will continue its policy to exit certain of its non-controlled assets, and maintained its commitment to the sale of its stake in Softbank for £3.1 billion.

Colao said: “I am pleased to report a further improvement in organic service revenue growth, together with upgraded guidance. We have also today announced an updated strategy, which positions Vodafone to realise further value from non-controlled assets, take full advantage of the most valuable telecommunications growth opportunities ahead and which will deliver sustainable revenue growth, stabilising margins and strong free cash flows.”