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Vodafone Q3 Revenue Up 2.6 Percent Reaches £10.3 billion

Vodafone

Vodafone-Q3-Revenue-Up-2.6-Percent-Reaches-£10.3-BnVodafone Group Q3 total revenue was up 2.6 percent to reach £10.3 billion.

Vodafone Group service revenue was £9.2 billion and was up by 1.4 percent. Total revenue declined 5.5 percent, including a 0.2 percentage point negative impact from M&A, and a 7.9 percentage point negative impact from foreign exchange rate movements. On an organic basis Group service revenue increased 1.4 percent and, excluding the impact of mobile termination rate (‘MTR’) cuts, Group service revenue grew 2.1 percent.

Total revenue for Vodafone Europe declined 6 percent, including a 0.1 percentage point favorable impact from M&A and a 6.7 percentage point adverse impact from foreign exchange movements.

Vodafone now have 28.1 million 4G customers across Europe, 3.8 million of which were added during the quarter, and total data usage grew 60 percent year-on-year. Fixed service revenue grew 3.7 percent, driven by strong consumer broadband customer growth, particularly in high speed fibre and cable services which grew by 379,000 to 5.9 million in the quarter.

Vodafone India service revenue increased by 2.3 percent with the quarterly growth rate slowing due to further competitive pressure, impacting both voice and data prices and data customer growth. Excluding the impact of regulatory changes, including MTR cuts, roaming price caps and an increase in service tax, service revenue grew by 7.6 percent.

Total revenue for AMAP declined 3.5 percent, including a 10.9 percentage point adverse impact from foreign exchange movements. Service revenue in AMAP increased 6.5 percent, sustaining its strong track record of organic service revenue growth.

The main drivers behind this performance are customer growth, with 6.3 million customers added in the quarter, and strong demand for mobile voice and data services. Across the region voice and data usage increased 8 percent and 78 percent respectively, and the number of data users increased by 17 percent year-on-year to 128.7 million.

We have continued to make very good progress on Project Spring and are now nearing the end of the deployment phase having completed 92% of the mobile build. We have added 165,000 mobile sites, modernised 102,000 sites, and upgraded 91,000 sites to high capacity backhaul since the project began. In AMAP, our mobile build targets have already been achieved 3 months ahead of target.

Our Enterprise business has grown for the fourth consecutive quarter, with service revenue up 2.6 percent, supported by continued growth in mobile and an acceleration in fixed trends.

As part of Project Spring we have continued to invest in our global IP-VPN network and are present in 65 countries with 259 Points of Presence (‘PoPs’). Our market leading M2M services are now available in 29 markets.

The performance of the Group remains in line with management’s expectations. We therefore expect EBITDA to be in a range of £11.7 billion to £12.0 billion, and free cash flow to be positive after all capex, and before the impact of M&A, spectrum purchases and restructuring costs. Total capex is expected to be between £8.5 billion to £9.0 billion.

Tags : FeaturednewsIP-VPNM2M servicesProject SpringvodafoneVodafone AMAPVodafone EnterpriseVodafone EuropeVodafone IndiaVodafone Q3 Revenue
TA Staff

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