Vodafone UK has reported a 2.1% rise in service revenues for the first half of the year, helping boost the firm’s income by 5.6%. The results mark the company’s sixth straight quarter of revenue growth.
Figures released by Vodafone Group today (8 November) for the first six months ending 30 September, show segment revenue in the UK was almost £2.7bn in the first half, compared with £2.6bn last year.
Income figures (EBITDA) were up from £599m to £633m year on year, resulting in a 35% increase in adjusted operating profits from £137m to £185m compared with the six months ending 30 September 2010.
Vodafone Group attributed the growth in service revenues to ‘an increase in enterprise and data revenue as well as good net customer additions and some price increases in consumer contract and prepaid’.
Average revenue per user (ARPU) across both contract and pay-as-you-go was £21.50 in the three months to 30 September, up from £20.80 in the previous quarter and £21.20 in the same period last year.
Customer figures for Vodafone’s second quarter of the year show a 17% customer churn in contract customers, while prepaid was at 55.4%, making a total annualised customer churn of 35.4%.
The company gained 81,000 net customers between 1 July and 30 September, rising from 19,006,000 to 19,331,000 subscribers. Prepaid now makes up 48% of its business. 182,000 new contract customers signed up during the three months to end of September, while 101,000 prepay customers left compared with a 345,000 loss in the previous quarter and 159,000 in the same period in 2010.
Service revenues for Vodafone’s second quarter were up 2.5% as a result to £1.26bn from £1.23bn year on year. Voice was down to £611m from £642m, but messaging, data and fixed lines all increased from the same period last year.
Vodafone said growth was impacted by Mobile Termination Rate (MTR) cuts, which took effect on 1 April. Service revenue growth would have been 6.3% without the impacts of MTRs. However, data revenues grew by 20.4% in the first half thanks to a higher penetration of smartphones being sold with data bundles. It also says it has offset drops with investment in customer acquisition and retention.
Overall, group revenue was up 4.1% to £23.5bn for the first six months.
Group chief executive Vittorio Colao said: ‘We are gaining share in most of our major markets through our focus on superior quality and an improved customer experience.
‘Although we are mindful of the uncertain economic outlook, we are confident that we have the right strategy to continue to perform consistently through top line growth, cost efficiency, investment and cash generation.’