Light Reading

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
    Flash Poll
    From The Founder
    Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Custom TV
    End-User or Enterprise Benefits to the New IP

    7|30|15   |   04:27   |   (0) comments


    Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
    LRTV Custom TV
    Network Visibility & the New IP

    7|30|15   |   02:23   |   (0) comments


    Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
    Between the CEOs
    Video Exclusive With Basil Alwan, Alcatel-Lucent

    7|24|15   |   26:44   |   (5) comments


    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    LRTV Custom TV
    VDF: Enable the Financial With Mobile Money

    7|20|15   |   06:53   |   (0) comments


    Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
    LRTV Custom TV
    Telefónica on OSS Transformation

    7|20|15   |   06:01   |   (0) comments


    Jose Gonzales discusses the details of Telefónica's operation transformation program.
    LRTV Custom TV
    Judi Achmadi on Huawei's Cloud Storage Solution

    7|20|15   |   03:33   |   (0) comments


    Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
    LRTV Custom TV
    KPN Enlightening Digital Business & IT Transformation

    7|20|15   |   06:19   |   (0) comments


    Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
    LRTV Custom TV
    Stratus Telco-Grade Cloud Solutions & NFV

    7|20|15   |   07:34   |   (0) comments


    Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
    LRTV Documentaries
    The Six Million Dollar Business Man

    7|20|15   |   01:52   |   (0) comments


    Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
    Between the CEOs
    CEO Chat With Anukool Lakhina, Guavus

    7|20|15   |   38:51   |   (1) comment


    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    LRTV Custom TV
    IBM's Flash Storage With Intel QuickAssist

    7|20|15   |   03:18   |   (0) comments


    Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
    LRTV Huawei Video Resource Center
    Thailand's AIS: Transforming to an FMC Operator

    7|17|15   |   4:53   |   (0) comments


    Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    December 1, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Infographics
    Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
    Hot Topics
    AT&T U-verse TV Hits the Skids
    Alan Breznick, Cable/Video Practice Leader, 7/24/2015
    Robbins Succeeds Chambers as Cisco Changes CEOs
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
    RJio to Launch Its Own 4G Devices Brand
    Gagandeep Kaur, Contributing Editor, 7/27/2015
    Qualcomm Wants FCC to Stay Out of LTE-U Fray
    Sarah Thomas, Editorial Operations Director, 7/27/2015
    Like Us on Facebook
    Twitter Feed
    September 22, 2015
    Media Begins With “Me”
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    Cats with Phones
    Distract-a-Cat Click Here
    The vibrate function makes for a useful cat distraction.