Vodafone UK sees revenues fall 4.5pc


The operator said lower out-of-bundle usage and increased competition contributed to the decline, which helped offset 15.5 per cent growth in Turkey

Vodafone UK saw service revenues fall by 4.5 per cent in the second quarter of 2013, due to increased competition and pricing pressures.

The operator also said lower UK revenues were due to poor economic conditions making customers more cautious, which led to out-of-bundle usage falling by seven per cent.

Mobile in-bundle revenue, however, grew by 1.5 per cent due to increased take-up of Vodafone Red plans, which were introduced in September last year and offer unlimited minutes and texts with varying data allowances.

Vodafone said its ‘Red’ plans are now live in 16 markets, have attracted 5.2 million customers, and represent around 14 per cent of consumer contract customers in its four main markets (including Germany and the UK).

The operator said growth in countries such as Turkey (service revenues grew 15.5 per cent) had been offset by the declines seen in the UK and Germany, which saw a 5.1 per cent decline.

Group service revenue, including joint ventures, declined by 3.5 per cent in the second quarter of 2013 to 10.2 billion.

In the UK, Vodafone said it had continued to invest “significantly” in its 4G network, which it expects to launch later this summer.

It said its integration of telecommunications company Cable & Wireless in April was “progressing well”.

Vodafone chief executive Vittorio Colao said: “We have made a good start to the year in our areas of strategic focus: growth in emerging markets has accelerated, we now have over 5 million customers benefiting from Vodafone Red, and 4G is live in ten markets.

“In addition, the proposed acquisition of Kabel Deutschland will create an excellent platform for our unified communications strategy in our most important market. Although regulation, competitive pressures and weak economies, particularly in Southern Europe, continue to restrict revenue growth, we continue to lay strong foundations for the longer term.”