Vodafone’s UK revenues up 2.6 per cent to £5.4bn


Revenues and profits up in the past 12 months, but operator lost 163,000 customers in the first quarter of this year despite the addition of 93,000 contract subscribers

Vodafone UK saw its revenues rise to £5.4 billion in the 12 months to March 31, 2012, up 2.6 per cent from the previous year.

Service revenues rose 1.6 per cent to £5 billion, which Vodafone said was driven by an increase in data and customer contract revenue, supported by the success of integrated offerings.

It added this was partially offset by the impact of a Mobile Termination Rate (MTR) cut effective from April 1, 2011 and lower consumer confidence leading to reduced out-of-bundle usage.

Data revenue increased 14.5 per cent to £872 million in the year-long period, which the operator said was due to higher penetration of smartphones and an increase in those sold with a data bundle.

EBITDA was up five per cent to £1.3 billion, while the UK made an operating profit of £402 million compared to the £348 million profit made in the previous year.

In the first quarter of this year, Vodafone UK added 93,000 contract customers but lost 256,000 prepay subscribers, meaning its total customers numbers were down 163,000 at 19.1 million. Prepay customers now make up 46.2 per cent of the operator’s total customer base.

Service revenues rose 1.1 per cent from the final quarter of last year to £1.25 billion. Voice revenue fell by £36 million in the quarter to stand at £585 million compared to £621 million, whilst data revenue was up by £12 million to £220 million.

Vodafone UK’s total ARPU in the quarter was £21.20, which was flat from the same quarter a year ago and down from £21.40 in the previous quarter. Contract ARPU was £34.60, down from £35.20 in the last quarter of 2011 and slightly down from £36.40 in the same quarter a year ago.

Commenting on the Vodafone Group results, chief executive Vittorio Colao (pictured) said: “Our focus on the key growth areas of data, emerging markets and enterprise is positioning us well in a difficult macroeconomic environment.

“Our commercial performance and our ability to leverage scale continue to be strong, enabling us to gain or hold market share in most of our key markets, and reduce the rate of margin decline.

“Our goal over the next three years is to continue to strengthen our technology and commercial platforms through reliable and secure high speed data networks, significantly enhanced customer service across all channels, and improved data pricing models, to enrich customers’ experience and maximise our share of value in the markets in which we operate.”