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Eurobites: UK Dampens Vodafone's Q1

Paul Rainford
7/22/2016
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Also in today's EMEA regional roundup: Bezeq trials G.fast; Telecom Italia, HPE land cloud services contract; Net Insight sees revenues rise.

  • Vodafone Group plc (NYSE: VOD)'s organic service revenue (excluding the impact of currency exchange fluctuations) grew 2.2% year-on-year to €12.3 billion (US$13.55 billion) in its fiscal first quarter that ended June 30, with a decent performance in most of its territories, not least Turkey, where revenue rose 19.5%. One blot on the landscape, however, was the UK, where organic service revenue slipped 3.2% (see table below) in the face of "operational challenges following a billing system migration" and other factors. Total group revenue was 4.5% down on a reported basis, to €13.37 billion ($14.72 billion), with Europe pulling in €8.71 billion ($9.59 billion) of that and Africa, Middle East & Asia-Pacific generating the remainder. (See Eurobites: Vodafone's Billing Is Shocking, Say UK Customers.)

    Table 1: Vodafone in Europe: Fiscal Q1 Country Comparison (€M)

    Service revenue Other revenue Revenue Reported revenue growth YoY % Organic service revenue growth YoY %
    Germany 2,479 106 2,585 -2.5 1.6
    Italy 1,281 192 1,473 1.3 1.2
    UK 1,758 84 1,842 -11.4 -3.2
    Spain 1,128 117 1,245 0.8 1.3
    Other Europe 1,528 89 1,617 -0.2 1.2
    Eliminations -45.0 -2.0 -47.0
    Total 8,129 586 8,715 -3.2 0.3
    Source: Vodafone Group

  • Bezeq, The Israel Telecommunications Corp. Ltd. (OTC: BZQIF) is trialling G.fast technology to deliver gigabit broadband services over copper, with Adtran Inc. (Nasdaq: ADTN) acting as the technology provider. (See Bezeq Trials Adtran's G.fast Tech.)

  • Telecom Italia (TIM) has teamed up with Hewlett Packard Enterprise to land a €500 million ($550 million) cloud services contract for the country's public administration department. The contract will run for up to five years, and will allow civil servants to access a range of cloud-based resources.

  • Net Insight AB (Stockholm: NETI-B), the Swedish video transport platform vendor, saw second-quarter net revenue rise 42% year-on-year, to 132.3 million Swedish kronor ($15.3 million), while operating profits more than doubled, to SEK12 million ($1.39 million). (See Net Insight Reports Q2 Growth.)

  • Italy's plan to boost its digital standing by getting state-controlled utility company Enel to lay fiber alongside its existing power network has helped persuade Amazon.com Inc. (Nasdaq: AMZN) to invest at least €500 million ($550 million) in new warehouses and data centers in the country, reports Reuters.

  • BT Group plc (NYSE: BT; London: BTA) suffered its second major outage in two days on Thursday, as a tripping circuit breaker at its Telehouse North exchange in London's Docklands district meant no Internet access for a number of BT and PlusNet plc customers, The Guardian reports. Wednesday's outage, caused by a problem at an Equinix Inc. (Nasdaq: EQIX) data center in London, affected 10% of BT's 9 million broadband customers for several hours.

  • New export controls on cyber-surveillance technologies, including smartphone trackers, could come into force if the European Commission gets its way, according to a EurActiv report.

  • Smartphone apps are taking over from websites when it comes to online banking in the UK, according to a BBC report citing a new study from the British Bankers Association. Last year there were 11 million logins a day using smartphone apps, compared to 7 million in 2014, while logins via banking websites dropped from 4.4 million a day in 2014 to 4.3 million in 2015.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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