& cplSiteName &

Vodafone's Fiscal Q3 Sales Dip

Light Reading
LR Mobile News Feed
Light Reading
2/7/2013
50%
50%

NEWBURY, U.K. -- Interim management statement for the quarter ended 31 December 2012 Vodafone Group Plc

  • Group service revenue declined -2.6%; or -0.4% excluding mobile termination rate (‘MTR’) cuts
  • Decline in Northern and Central Europe service revenue: Germany -0.2%, UK -5.2%
  • Conditions in Southern Europe remain challenging: Italy -13.8%, Spain -11.3%
  • Continued growth in emerging markets1: India +9.0%, Vodacom +1.9%, Turkey +18.4%
  • Verizon Wireless (‘VZW’) service revenue grew +8.7% driven by strong customer additions
  • Group data revenue grew +12.8% reflecting an increase in European smartphone penetration to 33.4%
  • LTE services launched in Italy, South Africa, Greece and Romania; LTE now available in six markets
  • Net debt reduced to £23.3 billion after receipt of £2.4 billion VZW dividend
  • Vodafone Red launched in five markets; 48.3% of European mobile service revenue now in-bundle
  • Full year guidance for adjusted operating profit and free cash flow confirmed Vittorio Colao, Chief Executive, commented:
    “Our results continue to reflect very difficult market conditions in Europe. We are addressing this through firm actions on cost efficiency, and continuing to invest in areas of growth potential. We continue to make progress in our Vodafone 2015 strategy, with good revenue growth in data and emerging markets, the launch of LTE services in another four markets and the acquisition of new spectrum. Vodafone Red, our new strategic pricing approach in Europe, has been launched in five markets with positive early take-up, and to drive growth in enterprise we have created a new enterprise business unit and accelerated our integration plans for Cable & Wireless Worldwide.” Group overview
    Reported Group revenue for the quarter was £11.4 billion and Group service revenue was £10.4 billion. On an organic basis Group service revenue decreased by -2.6%. Excluding the impact of MTR cuts, Group service revenue decreased by -0.4%. Our emerging market1 operations continued to grow and we saw an increasing uptake of data services across the Group, but this was offset by macroeconomic, regulatory and competitive pressures across Europe which intensified in the quarter. Northern and Central Europe service revenue decreased by -0.9%, a -1.6 percentage point decline compared to the previous quarter. In Germany service revenue declined by -0.2%*, reflecting a cut in MTRs on 1 December 2012, lower gross customer additions, and an ARPU decline in the consumer contract segment. Service revenue in the UK fell by -5.2% with a decline in ARPU and lower out-of-bundle usage. In the Netherlands service revenue fell by -3.5%, with a decline in roaming revenue and out-of-bundle usage, and increased popularity of value plans in the market. In Turkey service revenue grew by 18.4%* driven by strong growth in data and enterprise, and the continued expansion of the contract customer base. Southern Europe service revenue fell by -11.9% , a -0.6 percentage point decline compared to the previous quarter, with market conditions remaining difficult. In Italy service revenue declined by -13.8%, impacted by lower MTRs as well as ongoing competitive and macroeconomic pressures. In Spain service revenue declined by -11.3% with a lower customer base following our decision to remove handset subsidies for a period earlier in the year, competitive pressures in the value segment and the increased popularity of converged consumer offers in the market. In AMAP service revenue grew by 2.7%, a slowdown of -1.4 percentage points from the previous quarter. In India service revenue was up 9.0% with the benefits of a more stable competitive environment offset by the impact of new subscriber verification rules and regulations relating to messaging and processing fees. Data revenue growth in India continues to be strong and we now have 2.5 million 3G subscribers. Service revenue growth at Vodacom slowed to 1.9% with a decline in South Africa, reflecting competitive pricing pressures and a lower level of customer additions, offset by continued strong growth in the international businesses. In Australia service revenue fell by -16.0%. The business continues to focus on network improvements and arresting weakness in brand perception. Despite continued macroeconomic and political uncertainty service revenue in Egypt grew by 3.1% with a continued increase in the take-up of data services. Group data revenue grew by 12.8% to £1.7 billion and now accounts for 16.2% of Group service revenue. 33.4% of our European customers now use smartphones, compared to 24.4% at December 2011. Vodafone Red has now been launched in five markets and early take-up has been positive with over two million customers so far. Integrated voice, SMS and data plans now represent 62.0% of consumer contract revenue in Europe with 48.3% of European mobile service revenue now in-bundle. Enterprise revenue decreased by -2.5% with a decline of -11.3% in Southern Europe partially offset by growth of 0.8% in Northern and Central Europe driven by new customer wins, and 5.9% growth in AMAP. Our Vodafone Global Enterprise business, which serves our multinational customers, continues to grow, adding 118 new accounts and growing service revenue by 3.6% in the quarter. Vodafone One Net, our converged fixed and mobile proposition targeted at small-to-medium-sized businesses, increased the number of users by 33.4% year-on-year to 2.4 million, helping to drive fixed enterprise revenue growth of 10.5%. We continue to see significant demand for machine-tomachine (‘M2M’) services and now have 9.7 million connections. The Group has created a new Group Enterprise unit consisting of four vertical teams: Vodafone Global Enterprise, Vodafone Carrier Services, Machine-to-Machine Solutions, and Hosting and Cloud Services. We have also accelerated the Cable & Wireless Worldwide (‘CWW’) integration plan to realise better the growth opportunity from offering converged services to our enterprise customers. VZW continues to perform strongly. Organic service revenue grew by 8.7%* led by strong growth in accounts and rising average revenue per account (‘ARPA’) driven by increased smartphone penetration (now 58.1% of the retail postpaid base) and take-up of 4G LTE services. VZW’s 4G LTE network now covers a population of more than 273 million and handles almost 50% of all data traffic. Net debt at 31 December 2012 was US$9.3 billion (31 December 2011: US$0.7 billion net cash) after payment of an US$8.5 billion dividend to its parents. Capital expenditure of £1.5 billion in the quarter was broadly similar to the previous year. Our investment remains focused on network quality in terms of coverage, reliability and speed. Vodafone Group plc
    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    From The Founder
    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Interviews
    Heavy Reading: The Web-Scale View

    1|18|17   |     |   (0) comments


    At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
    LRTV Custom TV
    Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

    1|18|17   |     |   (0) comments


    Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
    LRTV Custom TV
    ADVA Talks Innovation & the Future of Networking

    1|17|17   |     |   (0) comments


    Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
    LRTV Custom TV
    Cisco's Infinite Video Platform

    1|17|17   |     |   (0) comments


    Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
    LRTV Interviews
    Masergy: Ability to Adapt Key for NFV

    1|16|17   |   6:40   |   (0) comments


    Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
    LRTV Interviews
    Equinix: The Data Explosion

    1|13|17   |   4:16   |   (0) comments


    At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
    LRTV Interviews
    Heavy Reading: The Changing Data Center Landscape

    1|12|17   |   6:05   |   (1) comment


    At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
    LRTV Interviews
    Boingo: Prepping for Millions of Devices

    1|12|17   |   5:07   |   (1) comment


    At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
    LRTV Interviews
    Comcast Shows Off Gig Gateway at CES

    1|11|17   |     |   (1) comment


    With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
    LRTV Interviews
    Colt: End-to-End Key for 2017

    1|10|17   |   6:21   |   (0) comments


    At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
    From the Founder
    Cisco's Clemson on Mobile Cloud Video

    1|9|17   |     |   (1) comment


    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
    LRTV Custom TV
    VMware Telco NFV Solutions – Preparing for 5G & IOT

    1|9|17   |     |   (0) comments


    Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
    Upcoming Live Events
    March 21-22, 2017, The Curtis Hotel, Denver, CO
    May 15-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    A Women in Comms Glossary
    Sarah Thomas, Director, Women in Comms, 1/18/2017
    Is Cable One Beefing Up for Slaughter?
    Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
    Nokia CTO: 2017 Is the Year 5G Gets in the Field
    Dan Jones, Mobile Editor, 1/19/2017
    TV's Paradox: No HDR Without 4K
    Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
    Cable Has One Thing Verizon Needs
    Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
    Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
    Animals with Phones
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.