& cplSiteName &

Vodafone's Fiscal Q3 Sales Dip

Light Reading
LR Mobile News Feed
Light Reading

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
    Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
    Friday, October 28, 1:00PM EDT
    Security: The Plusses and Minuses of Open Source Software
    Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
    Wednesday, November 9, 1:00PM EST
    MANO 101
    Friday, November 11, 1:00PM EST
    Open Source for NFV MANO
    Wednesday, November 16, 1:00PM EST
    SDN 101
    John Isch, Practice Director, Network & Voice, Orange Business Services
    in association with:
    From The Founder
    Light Reading today starts a new voyage as part of a larger Enterprise.
    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 Custom TV
    OneAccess NFV Solutions

    10|26|16   |   5:30   |   (0) comments

    Antoine Clerget, CTO of OneAccess, discusses how his company has expanded its product line from enterprise-class routers to include a universal virtualized CPE as well as a suite of VNFs to help telco customers evolve to an NFV future.
    LRTV Custom TV
    The Journey Toward Carrier-Grade WiFi

    10|26|16   |   3:39   |   (0) comments

    In this Light Reading interview, Dave Sperling, CTO at Smith Micro Software and active participant of the WBA's policy working group, discusses the need for carrier-grade WiFi. Technical and business challenges slowing the fulfillment of this goal are addressed, as well as management strategies that will enable communication service providers to optimize end user ...
    LRTV Custom TV
    ZTE BBWF Highlights

    10|26|16   |     |   (0) comments

    At BBWF 2016, ZTE showed a broad range of innovative technologies that are kick-starting an ultrafast broadband journey.
    LRTV Custom TV
    Next-Generation Technology Beyond DOCSIS 3.1

    10|20|16   |     |   (0) comments

    At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
    LRTV Custom TV
    Hybrid Video Solutions to Change TV, Change Future

    10|20|16   |     |   (0) comments

    At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
    LRTV Custom TV
    Huawei Future-Oriented Giga Coax Network

    10|20|16   |     |   (0) comments

    At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
    LRTV Custom TV
    Huawei at SCTE 2016

    10|20|16   |     |   (0) comments

    Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
    LRTV Custom TV
    Assuring Network Quality in a Rapidly Changing Environment

    10|20|16   |     |   (0) comments

    As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
    Telecom Innovators Video Showcase
    A10 Networks on Service Providers' Industry Needs

    10|20|16   |     |   (0) comments

    Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
    LRTV Custom TV
    New NFV Use Cases for Cable TV

    10|19|16   |     |   (0) comments

    A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
    Women in Comms Introduction Videos
    Meet the Future Workforce: New Faces, Expectations & Motivations

    10|19|16   |   5:33   |   (1) comment

    Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
    LRTV Custom TV
    ZTE Global Services User Congress 2016 Highlights

    10|19|16   |     |   (0) comments

    ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
    Upcoming Live Events
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 1, 2016, The Westin Times Square, New York, NY
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Hot Topics
    Attacks Have Major Internet Sites on the Ropes
    Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/21/2016
    Trump: Dump AT&T/TW & Comcast/NBC
    Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/24/2016
    Google Fiber Hits Pause Button, Scales Back
    Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/26/2016
    T-Mobile: AT&T & TW Means Ma Bell Not Focused on Mobile
    Dan Jones, Mobile Editor, 10/24/2016
    Sprint: Revenue up 3%, Capex Will Rise Again
    Dan Jones, Mobile Editor, 10/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
    Animals with Phones
    'Oh, Were You Looking for This?' Click Here
    'I was just playing some games...'
    Live Digital Audio

    A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

    During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.