11/11/2008 10:16:00 AM
Profits fall by 14% at Vodafone UK
Vodafone’s UK profits were 14% down for the six months ending September 2008, compared to the same period last year, despite steady revenues.
The UK operator reported EBITDA of £603m for the period from April to September this year, while revenues for the same period were at £2.7m, only 1% down from last year.
As the operator’s half-yearly results were revealed, recently appointed CEO, Vittorio Colao, also announced a £1bn cost-cutting programme for the operator group.
He said: ‘Our updated strategy reflects the changing economic and market conditions and it will drive execution with a continuing focus on free cash flow. We will improve operational performance through customer value enhancement and cost efficiency, supported by a £1bn cost reduction programme. We will pursue growth opportunities in total communications, specifically mobile data, enterprise and broadband.’
Regardless of disappointing profits, the network added 207,000 new customers in the three months ending September – 159,000 of which were contract customers. At the end of September, Vodafone’s total customer base was at 18.7 million, with 41.2% of these on contracts.
Contract churn at the operator was down from 18% in June to 17.5% at the end of September, while blended ARPU remained constant at £22 despite a fall in contract average monthly spending from £41.2 to £40.5.