Vodafone UK service revenues up 1.1 pc


Vodafone UK says increase in data usage and One Net solutions and contract adds help fuel slight increase in service revenues

Vodafone has increased service revenues by 1.1 per cent to £1.27 billion in the UK for its third quarter ending December 31 2011.

The rise was thanks mainly to a strong performance from its enterprise business which grew by 3.1 per cent over the quarter as well as an increase in data usage across its customer base which grew to £220 million over the same period.

The increase in revenues within the enterprise business was attributed to a strong take up of Vodafone’s fixed and mobile products such as One Net over the period.

The increase in data usage was attributed mainly to Vodafone’s ‘Data Test Drive’ offer, which gives customers unlimited data usage for the first three months of their contracts.

Vodafone said revenues would have sat at 4.8 per cent for the quarter if the cut in Mobile Termination Rates (MTRs) were taken into consideration.

Vodafone lost 1,000 prepay customers over the course of its third quarter a market which a Vodafone spokesperson described as “challenging” for the operator.

But it continued to strengthen its contract base, adding 174,000 new customers throughout the three months, thanks mainly due to its ability to offer the iPhone 4S to customers via pre order before any other operator.

Vodafone’s entire group service revenue grew by 0.9 per cent to 10.611 billion, but Vodafone claimed this would have sat at a higher 3.1 per cent if MTRs were taken out of the equation.

It said strong service growth in India which grew by 20 per cent, Africa which grew by 8 per cent and Turkey which grew by 23.5 percent contributed strongly to the results.

However it said bad economic conditions in southern Europe saw service revenues decline in Italy by 4.9 per cent and Spain by 8.8 per cent.

Across Europe though, data revenue increased by 21.8 per cent and smartphone penetration now sits at 24.4 per cent up from 16.5 per cent the previous year.

Vodafone Group chief executive Vittorio Colao (pictured) said:“We are continuing to make progress in the key strategic areas of data, enterprise and emerging markets.

“Despite the further deterioration of the southern European economic environment during the quarter, our broad geographic mix is delivering a resilient overall performance.

“Our improved value perception, strong cash generation and healthy balance sheet give us confidence that we can continue to execute well.”