Vodafone H1 results: mobile service revenues grow

Vodafone H1 results: mobile service revenues grow

Contract customer growth led to a rise in UK mobile service revenue of 0.1% for Vodafone, according to the network’s first half financial results.

Vodafone explained that an increase in the number of retail stores helped boost customer numbers. Adding the strategy of providing greater customer control of out-of-bundle data spends resulted in an increase for in-bundle revenue and demand for data add-ons.

Mobile revenues from enterprise were described as being ‘broadly stable despite increased competition’.

On a quarter-by-quarter basis the network saw mobile service revenues fall 0.5%. Vodafone said this trend was connected to the introduction of regulation relating to 0800 numbers as well as the bundling strategy.

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UK costs

Vodafone recently revealed that it doesn’t generate enough cash in the UK to sufficiently invest in to the level required, using cash from the Group pot to keep up with its competitors.

Vodafone bemoans cost of UK investment

UK price competition, margin, investment in infrastructure and the cost of spectrum were all reasons put forward by the network.

Vodafone also faces the prospect of becoming the third largest network in its home market should the proposed merger between O2 and Three be allowed by the regulators.

Turning point

Group CEO Vittorio Colao hailed the half year results as a turning point, he said: ‘We have reached an important turning point for the Group with a return to organic growth in service revenue and EBITDA in the first half of the financial year. Our customers are benefiting from the significant investments we are making in high speed mobile and fixed networks, as evidenced by the huge growth in demand for data and the increased loyalty to Vodafone services.

‘We are achieving 4G leadership in Europe, organic revenue growth in fixed and enterprise and sustained commercial momentum in emerging markets, all of which is consistent with our long-term strategy and which is being accelerated through our Project Spring investments. We also remain keenly focused on increasing efficiency and improving margins. We expect progress to continue in the second half of the year.’

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Updated 13:35 10/11/2015


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