Vodafone revenues up on back of smartphone sales

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Operator’s UK full year revenues rise to £5.28 billion following addition of 991,000 new contract customers in last 12 months 

Vodafone UK has increased its full year revenues from £5.02 per cent to £5.28 billion the company’s financial figures, released today show.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were also up to £1.23 billion from £1.14 billion one year ago.

Annual operating profits rose to £348 million in the year, compared to £155 million on March 31 2010.

Meanwhile, Vodafone’s results for the last quarter show it mobile service revenue has grown faster than that of O2 and Everything Everywhere.

This revenue growth for the period to the end of March went up 5.8 per cent to £1.246 billion compared to rises of 3.6 per cent and 0.4 per cent by O2 and Everything Everywhere respectively.

Vodafone says the increase is thanks to a “very significant” increase in its contract customer base – it has added 991,000 new contract customers to its base last year, 232,000 of these coming in the last quarter compared to the 151,000 O2 added and the 160,000 added by Everything Everywhere.

O2 added a total of 736,000 new contract customers over the last 12 month, while Everything Everywhere added 912,000.

Vodafone the boost in customers was thanks mainly to a strong demand for smartphones – 90 per cent of its contract sales are now smartphones compared to 70 per cent in the last quarter.

Vodafone chief executive Guy Laurence said: “These results show the transformation that is happening within the UK business. British consumers are turning to smartphones as never before, with a staggering 90 per cent of our contract customers now taking one. They are seeing the benefits of the continued investment that we are making to provide the UK’s best network.”

Group Results

Vodafone global results, also released today also showed revenue to be up – by 3.2 per cent to £45.9 billion.

This rise in revenue was put down to a strong performance by the company’s US operation, Verizon Wireless which increased its revenue by 5.8 per cent.

Data also contirbuted heavily to overall revenues, rising by 26.4 per cent to £5.1 billion for the period. This side of the business now represents 12 per cent of the groups overall revenues.
Group EBITDA however was down 0.4p per cent across the group to £14.7 billion.

Speaking about the results Vodafone Group chief executive Vittorio Colao said: “The past year has seen further strong performances in our key revenue growth areas of data, emerging markets and enterprise, and we have gained or held market share in most of our key markets.

“Continuing network investment is an important differentiator for Vodafone, improving the customer experience and giving us leadership in smartphone penetration and in customer take up of data plans.

“We enter the new financial year well positioned to deliver further value to our shareholders.”

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