Vodafone Revenues Fell in Last 3 Months of 2012 on Weak European Markets
Vodafone has released an interim financial statement and said that its third-fiscal quarter revenues fell by 2.6 percent compared to the previous year to £11.39 billion (US$17.8 billion), primarily due to falls in Italy, UK and Spain.
Vittorio Colao, Chief Executive, commented: "Our results continue to reflect very difficult market conditions in Europe. We are addressing this through firm actions on cost efficiency, and continuing to invest in areas of growth potential."
In Germany service revenue declined by 0.2%, reflecting a cut in MTRs last December, lower gross customer additions, and an ARPU decline in the consumer contract segment.
Service revenue in the UK fell by 5.2% with a decline in ARPU and lower out-of-bundle usage. In the Netherlands service revenue fell by 3.5%, with a decline in roaming revenue and out-of-bundle usage, and increased popularity of value plans in the market.
In Turkey service revenue grew by 18.4% driven by strong growth in data and enterprise, and the continued expansion of the contract customer base.
In Italy service revenue declined by 13.8%, impacted by lower MTRs as well as ongoing competitive and macroeconomic pressures. In Spain service revenue declined by 11.3% with a lower customer base following the decision to remove handset subsidies for a period earlier in the year, competitive pressures in the value segment and the increased popularity of converged consumer offers in the market.
In India service revenue was up 9.0% with the benefits of a more stable competitive environment offset by the impact of new subscriber verification rules and regulations relating to messaging and processing fees.
Service revenue growth at Vodacom slowed to 1.9% with a decline in South Africa, reflecting competitive pricing pressures and a lower level of customer additions, offset by continued strong growth in the international businesses. In Australia service revenue fell by 16%. The business continues to focus on network improvements and arresting weakness in brand perception.
Despite continued macroeconomic and political uncertainty service revenue in Egypt grew by 3.1% with a continued increase in the take-up of data services.
Group data revenue grew by 12.8% to £1.7 billion and now accounts for 16.2% of Group service revenue. 33.4% of our European customers now use smartphones, compared to 24.4% at December 2011.
Verizon Wireless saw organic service revenue graw by 8.7% led by strong growth in accounts and rising average revenue per account driven by increased smartphone penetration and take-up of LTE services.
Vodafone Group's net debt at 31 December 2012 was £23.3 billion (US$36.5 billion).