7/24/2009 10:37:00 AM
Vodafone reports further decline in UK customer base
Vodafone has reported another tough financial quarter with a 4% decline in UK revenues to £1.18m, as its customer base declined further.
The operator lost 159,000 customers during the quarter ended June 30, leaving it with a total customer base of 18.5 million, 57% of which are prepay.
The company blamed ‘intense competition and economic pressures’ for the decline in revenue, but added that these were offset by good growth in data services and higher wholesale revenue from its MVNO agreements.
However, it said the next quarter would be impacted by the reduction in termination rates, effective from July.
Overall, group revenues increased by 9% to £10.7bn, despite a drop of 2% in organic service revenues.
Vodafone's £1bn cost-cutting program is on course to reach its goal of 65% by the end of the current financial year. The company will provide more details at its half year results presentation in November.
O2 is expected to report its results for the quarter ended 30 June next Thursday (30 July).