Vodafone Revenues Fall on Weak European Markets
Vodafone has announced that its revenues for the second-quarter of this year fell by 3.5% to £11.1 billion (US$16.9 billion), hurt largely by cuts in mobile termination rates and a weaker European market.
The company does not report quarterly profit figures.
Vodafone's CEO, Vittorio Colao commented that "Although regulation, competitive pressured and weak economies, particularly in Southern Europe, continue to restrict revenue growth, we continue to lay strong foundations for the longer term."
Northern and Central Europe service revenue decreased by 3.0% . In Germany service revenue declined by 5.1% , compared to a 3.5% decline in the prior quarter, reflecting increased competitive intensity and lower market growth in both the consumer and enterprise segments. Service revenue in the UK fell by 4.5% , mainly due to price pressure.
In Turkey service revenue grew by 15.5%, driven by an easing of competitive pressures and continued strong growth in data and enterprise. In the Netherlands the service revenue decline was broadly unchanged from the previous quarter at 3.7%.
Southern Europe service revenue including Italy fell by 14.4% . In Italy, market conditions remain difficult, with a significant increase in competitor activity leading to substantial price reductions, a deteriorating economic environment and the ongoing impact of steep MTR cuts.
In Spain service revenue fell by 10.6% due to the lower customer base, particularly in the prepaid segment, and the increased popularity of discounted converged consumer offers in the market.
In India service revenue was up 13.8% driven by a more stable pricing environment, an improved process of customer verification and continued strong data revenue growth. Service revenue growth at Vodacom improved to 3.2%.
In Egypt, service revenue grew strongly at 8.2% , due to significant growth in the customer base, higher incoming revenue and continued take-up of data services and social media in particular.
Net debt, excluding joint ventures which are no longer included under new accounting rules stood at £23 billion (US$35 billion).