RNS Number : 5679Z
Vodafone Group Plc
22 July 2008
22 July 2008
INTERIM MANAGEMENT STATEMENT FOR THE QUARTER ENDED 30 JUNE 2008
Key highlights of the quarter ended 30 June 2008:
* Group: Revenue of £9.8 billion, up 19.1% (organic +1.7%)
- Group data revenue up 50.6% to £664 million (organic +29.4%)
- Total communications services now at 15% of Group revenue
- Proportionate mobile customer base of 269.0 million, up 8.5 million
in the quarter
* Europe: Service revenue up 15.7% driven by strong foreign exchange (organic -0.2%)
- Spain particularly impacted by economic and competitive effects
* EMAPA: Service revenue up 30.9% (organic +8.7%)
- Strong total revenue growth from India of over 50%
* Verizon Wireless: net customer additions of 1.5 million
* Outlook(1):
- Revenue now expected to be around the bottom of the £39.8 billion
to £40.7 billion
outlook range reflecting first quarter performance, recent economic
weakness and
lower than expected equipment revenue
- Other outlook measures unchanged resulting from continued focus on
cost reduction
with adjusted operating profit in the range £11.0 billion to
£11.5 billion,
capitalised fixed asset additions of £5.3 billion to £5.8 billion
and free cash
flow of £5.1 billion to £5.6 billion
- Results likely to continue to benefit from foreign exchange
Arun Sarin, Chief Executive, commented:
"Notwithstanding this more challenging operating environment, we continue to benefit from
a diversity of assets and services, with
strong revenue growth in EMAPA and another good quarter of data revenue growth offsetting
weakness in Spain. Whilst we expect revenue around
the bottom of the outlook range, our continued focus on cost reduction enables us to reiterate
our operating profit and cash flow guidance
for the year."
Note:
1. Foreign exchange rate assumptions of £1:EUR130 and £1:US$1.96 unchanged
OPERATING REVIEW
Group
Quarter ended 30 June
2008 2007 % change
£m £m £ Organic
7,183 6,219 15.5 (0.2)
Europe
EMAPA 2,637 2,021 30.5 9.2
Other and eliminations 8 13 (38.5) (18.8)
Revenue 9,828 8,253 19.1 1.7
6,587 5,733 14.9 (1.1)
Voice revenue(1)
Messaging revenue(1) 1,067 927 15.1 2.5
Data revenue(1) 664 441 50.6 29.4
Fixed line revenue 613 402 52.5 (0.6)
Other service revenue(1) 271 210 29.0 16.9
Service revenue 9,202 7,713 19.3 1.6
Note:
1. Visitor revenue and revenue from Mobile Virtual Network Operators, or
MVNOs, are now reported in the line 'other service revenue'. This revenue
was previously reported within each of the lines for voice, messaging and
data revenue. Visitor revenue represents the amounts received by a Vodafone
operating company when customers of another operator, including those of
other Vodafone companies, roam onto its network. Visitor revenue previously
reported within data revenue will continue to be included in the
measurement of total communications initiatives. All periods are presented
on the revised basis.
Revenue increased by 19.1% to £9.8 billion and by 1.7% on an organic basis. The net
impact of acquisitions and disposals, principally
Vodafone Essar, contributed 4.9 percentage points to revenue growth and exchange rate
movements contributed a further 12.5 percentage
points, principally driven by the favourable movement in the average euro/£ exchange rate to
1.26 for the quarter, compared with 1.47 in the
same quarter last year.
Europe revenue increased by 15.5% compared with the same quarter last year, but declined
0.2% on an organic basis for the quarter.Organic growth was lower than the previous quarter, primarily due to a fall in revenue in
Spain which was impacted by a decline in customer
spending in a challenging macro economic and competitive environment, together with the
effects of different promotional activity in the
prior year.
EMAPA revenue grew 30.5%, or by 9.2% on an organic basis. Year on year revenue growth in
India for the quarter was 52%, assuming the
Group owned the business for the whole of both quarters. The Group's emerging markets
continued to deliver strong growth, primarily driven
by expansion of the customer base. However, organic revenue growth for the quarter was lower
than the growth of 12.6% in the previous
quarter, principally due to lower growth in Egypt and Romania and the inclusion of Turkey
within the organic calculation for the first
time.
The Group's total communications initiatives are on course to deliver approximately 20% of
Group revenue by March 2010, with a
contribution of 15% to Group revenue achieved in the quarter to 30 June 2008. Total
communications revenue consists of revenue from all
mobile data services, fixed line services, fixed location mobile services, advertising and
business managed services.
Data revenue was £664 million in the quarter compared with £441 million in the prior
year, driven by the penetration of mobile PC
connectivity devices and improved service offerings. At 30 June 2008, 6.7 million customers
across the Group were connected via handheld
business devices or mobile PC connectivity devices, an increase of 105.4% compared to 30 June
2007. The increase in customers has been
particularly enhanced by the success of the Vodafone Mobile Connect USB modem offering into
the consumer segment.
Fixed line revenue was £613 million in the quarter, with Vodafone now offering fixed
broadband services to 3.7 million customers across
13 markets. Germany remains the most significant market, with 2.8 million fixed broadband
customers in Arcor and Vodafone Germany at 30 June
2008. Vodafone Italy is now offering an integrated fixed and mobile solution called Vodafone
Station.
Europe
Quarter ended 30 June
2008 2007 % change
£m £m £ Organic
7,183 6,219 15.5 (0.2)
Revenue
4,560 4,176 9.2 (3.6)
Voice revenue
Messaging revenue 855 746 14.6 2.2
Data revenue 552 388 42.3 25.5
Fixed line revenue 598 391 52.9 (1.2)
Other service revenue 203 149 36.2 20.8
Service revenue 6,768 5,850 15.7 (0.2)
Quarter ended 30 June
Service revenue 2008 2007 % change
£m £m £ Organic
1,419 1,238 14.6 (1.9)
Germany
Italy 1,268 1,005 26.2 0.6
Spain 1,314 1,110 18.4 (2.5)
UK 1,234 1,209 2.1 2.1
Arcor 453 375 20.8 3.0
Other 1,228 1,028 19.5 1.7
Eliminations (148) (115)
6,768 5,850 15.7 (0.2)
Key performance indicators Germany Italy Spain UK Other Europe
2008 35,295 23,056 16,210 18,510 18,771 111,842
Closing mobile customers
('000)
2007 31,618 21,763 15,179 17,647 17,281 103,488
2008 11,507 10,094 9,226 9,650 8,464 48,941
Mobile voice usage ('000)
2007 9,897 8,932 8,530 8,963 7,572 43,894
Revenue increased by 15.5% compared with the same quarter last year and included a 2.2
percentage point benefit from business
acquisitions, primarily in Italy and Spain, and a 13.5 percentage point benefit from exchange
rate movements, mainly due to strengthening of
the euro, compared to the same quarter last year. Organic service revenue declined by 0.2% for
the quarter, with organic growth lower than
the previous quarter, primarily due to a fall in revenue in Spain from a decline in customer
spending following a recent deterioration of
the macro economic environment coupled with the continuing trend of intensifying competition,
together with strong revenue performance in
the comparative period.
The Europe region recorded 1.3 million net mobile customer additions in the quarter, in
line with the previous quarter. The total mobile
customer base reached 111.8 million at the end of the quarter, up 8.3 million since the end of
the same quarter last year.
The Group's major cost reduction programmes continue to deliver savings in operating and
capital expenditure. A number of other
initiatives have also been implemented to drive cost efficiency across a wide range of
business processes and activities, with a particular
focus on standardisation, centralisation and leveraging the Group's scale.
Voice revenue
Voice revenue declined by 3.6% on an organic basis compared with the same quarter last
year, a continuing result of the lower effective
rate per minute brought about by a number of pricing initiatives and regulation led reductions
in termination rates and roaming prices,
mitigated by an 11.5% increase in voice usage. Outgoing voice revenue declined 2.4% on an
organic basis as the effective price per minute
fell 14.1%, but was not fully offset by usage growth following continued efforts to drive
increased usage per customer and improvements to
the customer base. Incoming voice revenue declined by 6.7% on an organic basis with a 11.3%
reduction in the effective rate per minute,
principally due to ongoing termination rate cuts in Germany, Italy and Spain, partly offset by
a 5.2% growth in incoming call volumes.Roaming revenue declined 6.5% year on year on an organic basis from the impact of the Group's
initiatives on retail and wholesale roaming
and regulatory driven price reductions, which was partially mitigated by strong growth of
12.1% in roaming minute volumes.
Messaging revenue
Messaging revenue grew by 2.2% on an organic basis compared with the same quarter last
year, but with different trends across the
region, a result of a diverse range of tariff initiatives being used to stimulate growth in
messaging revenue. In particular, the UK
delivered the strongest growth of 13.5%, while in Germany, messaging revenue fell 10.0% at
constant exchange rates, consistent with trends
in the previous quarter.
Data revenue
Data revenue growth remained strong, increasing by 25.5% on an organic basis, slightly
lower than the same quarter last year. This
growth resulted primarily from an 84.1% rise in the number of mobile PC connectivity devices,
driven by the promotion of attractive data
tariffs across many European markets.
Fixed line revenue
Fixed line revenue increased by 52.9%, but declined slightly by 1.2% on an organic basis,
with the difference attributable to a 22.3
percentage point impact from favourable foreign exchange movements, and a 31.8 percentage
point impact due to business acquisitions, mainly
resulting from the acquisitions in Italy and Spain from Tele2. The organic decline in revenue
resulted primarily from pricing pressures in
the fixed broadband market and continued decline in revenue from Arcor's legacy voice
services, mitigated by the growth in German fixed
broadband customers and in the carrier business, with an increased proportion of the customer
growth being contributed by Vodafone Germany.At 30 June 2008, Europe had 3.7 million fixed broadband customers, an increase of 0.2 million
during the quarter.
Other service revenue
Other service revenue increased by 36.2%, or 20.8% on an organic basis, mainly as a result
of an increase in revenue from MVNOs.
Germany
Service revenue decreased by 1.9% at constant exchange rates, mainly a result of higher
voice usage volumes being more than offset by a
lower effective price per minute, which resulted from Group initiatives and regulatory driven
price reductions as well as a smaller impact
from a fall in messaging revenue at constant exchange rates due to increasing penetration of
tariffs with inclusive messages sent within the
Vodafone network. Data revenue growth was 24.8% at constant exchange rates, driven by a 48.4%
increase in mobile PC connectivity devices.
Italy
At constant exchange rates, service revenue increased by 8.0%, including a 7.4 percentage
point benefit from the inclusion of the
business acquired from Tele2. On an organic basis, service revenue grew by 0.6%, with a
decline in voice revenue being offset by growth in
messaging and data revenue. The growth in the current quarter was higher than in the previous
quarter, with the impact of the regulatory
cancellation of top up fees now being fully reflected in both quarters to 30 June, partially
offset by lower messaging growth due to the
timing of the launch of new tariffs last year. Data revenue growth on an organic basis remains
strong at 41.9% compared to the same quarter
last year, driven by an increase in mobile PC connectivity devices which grew by 125.1% year
on year.
Spain
Service revenue growth of 1.3% at constant exchange rates benefited from a 3.8 percentage
point impact of the business acquired from
Tele2. On an organic basis, service revenue declined by 2.5%. This compares with 5.1% organic
growth for the previous quarter, with the
change primarily due to the recent deterioration of the macro economic environment and the
continuing trend of intensifying competition as
penetration rises. In addition, the results for the quarter are compared to a relatively
strong revenue performance in the comparative
period from different promotional activities. These factors led to an organic decline in voice
revenue, with slowing customer growth and an
acceleration in the year on year ARPU decline. Messaging revenue also fell, largely reflecting
the timing of promotional activity. Data
revenue growth slowed in the current quarter as the 89.3% increase in mobile PC connectivity
devices following the introduction of Vodafone
Mobile Connect USB modems to the market was partially offset by the effect of the timing of
promotional activities in the prior year and current market pricing initiatives.
UK
Service revenue increased by 2.1% due to 31.0% growth in data revenue following the
introduction of revised tariffs for mobile broadband
in February 2008 and 13.5% growth in messaging revenue, driven by the continued success of
bundled offers. Voice revenue declined 4.4% as
growth in voice usage of 7.7% was more than offset by a 9.2% fall in the effective rate per
minute, reflecting the continued competition in
the UK market and signs of an economic slowdown.
Arcor
Arcor generated a 3.0% increase in service revenue on a constant currency basis, driven by
the increase in fixed broadband customers
from strong promotional activity and growth in the carrier business, which more than offset
lower revenue from legacy fixed voice services
and pricing pressures in the fixed broadband market. Arcor's own customers increased 13.5% to
2.5 million at 30 June 2008, with an
additional 0.1 million customers acquired during the quarter through Vodafone Germany,
bringing the German fixed broadband customer base to
2.8 million at 30 June 2008.
Other Europe
Service revenue grew by 19.5%, or by 1.7% on an organic basis, with the difference
primarily due to favourable exchange rates. The
organic movement was mainly due to increases in service revenue of 8.2% and 6.7% in the
Netherlands and Portugal, respectively, as a result
of strong customer growth, partly offset by a decline of 6.7% in Greece, partly due to
termination rate cuts, all on a constant currency
basis.
SFR recorded 6,000 proportionate customer net additions in the quarter, bringing the
proportionate customer base to 8.3 million, up 4.8%
year on year. Vivendi will report further financial information for SFR on 31 July 2008.
EMAPA
Quarter ended 30 June
2008 2007 % change
£m £m £ Organic(1)
2,637 2,021 30.5 9.2
Revenue
2,027 1,557 30.2 7.2
Voice revenue
Messaging revenue 212 181 17.1 4.3
Data revenue 112 53 111.3 66.0
Fixed line revenue 15 11 36.4 25.0
Other service revenue 102 84 21.4 7.9
Service revenue 2,468 1,886 30.9 8.7
Quarter ended 30 June
Service revenue 2008 2007 % change
£m £m £ Organic(1)
861 714 20.6 4.5
Eastern Europe
Middle East, Africa & Asia 1,209 837 44.4 16.5
Pacific 399 335 19.1 7.3
Eliminations (1) -
2,468 1,886 30.9 8.7
Eastern Middle East,
Key performance indicators Europe Africa & Pacific EMAPA
Asia
2008 34,452 81,678 6,438 122,568
Closing mobile customers ('000)
2007 30,370 60,704 5,797 96,871
2008 13,145 66,428 3,397 82,970
Mobile voice usage ('000)
2007 11,987 30,087 3,010 45,084
Note:
1. On 1 October 2007, Romania rebased all of its tariffs and changed its
functional currency from US dollars to euros. In calculating all constant
exchange rate and organic metrics including Romania, previous US dollar
amounts have been translated into euros at the 1 October 2007 opening
exchange rate.
The EMAPA region continues to deliver strong growth in revenue, which grew 30.5%, or by
9.2% on an organic basis, with reported growth
including a 13.1 percentage point benefit from acquisitions and disposals, primarily relating
to the timing of the acquisition of Vodafone
Essar, and an 8.2 percentage point benefit from exchange rate movements. Organic revenue
growth for the quarter was lower than the growth of
12.6% in the previous quarter, principally due to lower growth in Egypt and Romania and the
inclusion of Turkey within the organic
calculation for the first time.
EMAPA recorded 7.8 million net mobile customer additions in the quarter. India accounted
for most of the increase, adding 5.1 million
customers in the quarter. The total customer base in the region reached 122.6 million and
included 49.2 million customers in India, making
it the largest subsidiary by customers within the Vodafone Group.
Eastern Europe
Revenue grew by 20.6%, or by 4.5% on an organic basis, with the difference being a result
of favourable exchange rate movements. The
organic growth was lower than the 7.8% growth achieved in the previous quarter mainly due to
the slower growth experienced in Romania
combined with the inclusion of Turkey in the organic calculation for the first time.
Romania, where the customer base has reached 9.3 million, continues to be the principal
driver of organic growth in Eastern Europe.Despite an increasingly competitive environment, service revenue growth in Romania at constant
exchange rates was 7.6%, with a 12.8% growth
in the average number of customers and increased usage per customer of 1.9% partly offset by a
lower effective rate per minute. This
performance was driven by the impact of promotions targeted at contract and, more recently,
prepaid customers, as well as strong data
promotions which had increased the penetration of mobile PC connectivity devices.
In Turkey, service revenue growth for the quarter was 3.7% at constant exchange rates,
mainly a result of customer growth of 16.6% year
on year, partly offset by the 6.8 percentage point impact of termination rate cuts in April
2008 and a general economic slowdown. The lower
effective rate per minute was also impacted by a very competitive environment, which has
resulted in higher levels of multi-SIM prepaid
customers optimising between networks and taking advantage of promotions.
Middle East, Africa and Asia
Service revenue growth was 44.4%, or 16.5% on an organic basis, with the acquisition of
Vodafone Essar being the main difference between
the reported and organic growth. The organic growth was predominantly driven by the 22.7%
organic growth in the average number of
customers.
India registered 5.1 million customer net additions in the quarter bringing the closing
customer base to 49.2 million, up 60.0% compared
to the same quarter last year, with strong revenue growth in one of Vodafone's key emerging
markets despite the increasingly competitive
environment. Year on year revenue growth for the quarter was 52%, assuming the Group owned the
business for the whole of both quarters.
At constant exchange rates, Egypt's growth in service revenue of 18.2% benefited from the
42.9% increase in the average customer base
compared to the same quarter last year. The increase in voice revenue was achieved as total
usage per customer increased by 3.8%, partly
offset by falls in the effective rate per minute. This trend was driven by a very competitive
market where more attractively priced
offerings from all operators increased usage.
Vodacom achieved service revenue growth of 15.2% at constant exchange rates, reflecting
growth in the average customer base of 9.4%,
which slowed as market penetration rose, and increased usage per customer. The Group's share
of customer net additions was 0.3 million,
bringing the Group's share of the closing customer base to 17.3 million. Data revenue growth
remained very strong driven by the take up in
mobile PC connectivity devices which reached a proportionate total of 0.2 million mobile PC
connectivity devices at 30 June 2008.
Pacific
Service revenue growth in the Pacific region was 19.1%, or 7.3% on an organic basis,
slightly lower than the 9.5% organic growth
achieved in the same quarter last year. This growth has been driven by, in Australia, a 10.3%
increase in the average customer base, the
improving mix of higher value contract customers and increasing penetration of mobile PC
connectivity devices and, in New Zealand, by a 5.7%
increase in the average customer base and strong growth in data and fixed line revenue.
Associates and investments
Verizon Wireless
In the US, Verizon Wireless achieved 1.5 million net mobile customer additions during the
quarter, with particularly strong growth in
the contract segment. The closing proportionate customer base reached 30.9 million, up 10.7%
year on year. Verizon Communications will
report its June quarter results, including those of Verizon Wireless, on 28 July 2008.
Other
The Group's other investments in EMAPA registered 1.1 million proportionate customer net
additions in the quarter, primarily relating to
the Group's 3.21% stake in China Mobile.
Financial position
At 30 June 2008, Group net debt was slightly lower than at 31 March 2008, as free cash
flow and exchange rate movements more than offset
the increase in net debt resulting from the business acquisitions in the quarter.
Since 31 March 2008, the Group completed or announced the following transactions:
On 16 May 2008, Vodafone acquired 100% of ZYB, a privately owned company based in Denmark,
which operates a social networking and online
management tool enabling mobile phone users to back-up and share their handsets' contact and
calendar information online, for cash
consideration of EUR32 million (£25 million).
On 19 May 2008, the Group acquired 26.4% of Arcor previously held by minority interests
for cash consideration of EUR474 million (£377
million). Following this transaction, Vodafone owns 100% of Arcor.
On 28 May 2008, the share allocation for Safaricom's public offering was completed and, as
a result, there was a change in consolidation
status of the entity from a joint venture to an associate. The Group's effective equity
interest has not changed.
On 5 June 2008, Verizon Wireless, the Group's associated undertaking in the US, agreed to
acquire Alltel Corp. ('Alltel') for a total
enterprise value of US$28.1 billion (£14.3 billion) in cash and assumed debt. Alltel is the
fifth largest mobile operator in the US,
delivering voice and advanced data services to more than 13 million customers across 34
states. The parties are targeting completion of the
acquisition by the end of the year, subject to obtaining regulatory approvals.
On 29 June 2008, Vodafone Qatar was awarded the second mobile licence in Qatar. It is
currently anticipated that Vodafone Qatar will
launch commercial services by the end of the current financial year.
On 3 July 2008, Vodafone announced that it had agreed to acquire a 70% stake in Ghana
Telecommunications Company Limited ('Ghana
Telecom'), a leading telecommunications operator in Ghana, from the Government of Ghana for a
total consideration of US$900 million (£452
million), on a debt-free, cash-free basis. Completion of the transaction is expected in the
second quarter of the current financial year.
Outlook
As a result of the first quarter performance and recent economic weakness together with
lower than expected equipment revenue, the Group
now expects that revenue will be around the bottom of its previously stated range of £39.8
billion to £40.7 billion.
However, due to the continued focus on operational and capital expenditures, the Group
expects that it will achieve, as previously
indicated, adjusted operating profit in the range £11.0 billion to £11.5 billion,
capitalised fixed asset additions of £5.3 billion to £5.8
billion and free cash flow of £5.1 billion to £5.6 billion.
The Group's outlook ranges for the year ended 31 March 2009 (Note 1) which were set out in
the Annual Report for the year ended 31 March
2008, reflect foreign exchange rate assumptions of £1:EUR1.30 and £1:US$1.96 (Note 2). The
Group will update its outlook for exchange rates,
which are expected to be beneficial, particularly in respect of revenue, and for the impact of
certain acquisitions when it presents its
half year results in November.
Notes:
1. The outlook statement does not include the impact of Group's announced
acquisition of Ghana Telecom, a change in the Group's effective interest
in Neuf Cegetel or Verizon Wireless' acquisition of Alltel. It also
excludes spectrum and licence payments, but includes estimated payments
in respect of long standing tax issues.
2. A substantial majority of the Group's revenue, adjusted operating profit,
capitalised fixed asset additions and free cash flow is denominated in
currencies other than sterling, the Group's reporting currency. A 1%
change in the euro / sterling exchange rate would impact revenue by
approximately £250 million and adjusted operating profit by approximately
£70 million.
- ends -
For further information:
Vodafone Group
Investor Relations Media Relations
Tel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444
Notes to editors:
1. Vodafone, the Vodafone logos, Vodafone live!, Vodacom, Vodafone Mobile
Connect, Vodafone Station and ZYB are trade marks of the Vodafone Group.
Other product and company names mentioned herein may be the trade marks
of their respective owners.
2. References to 'the previous quarter' are to the quarter ended 31 March
2008 unless otherwise stated.
3. Eliminations within the Europe and EMAPA service revenue tables represent
intercompany revenue between the segments within the respective region.
4. The calculation of organic growth for the quarter is consistent with the
definition on page 155 of the Group's Annual Report for the year ended 31
March 2008, except certain in-country acquisitions, such as from Tele2 in
Italy and Spain, have been included on a pro forma basis, i.e. assuming
the businesses were acquired at the beginning of the comparative period.
This reflects the Group's intention to integrate these businesses into
the relevant existing operating company's operations.
For organic growth, the main adjustments within the Europe region are for
foreign exchange movements and the acquisitions from Tele2 in Italy and
Spain. For the EMAPA region, the principal adjustments are for the
acquisitions of Vodafone Essar in India, as well as foreign exchange
movements. The impact of acquisitions and disposals also includes the
impact of the change in consolidation status of Safaricom from a joint
venture to an associate.
5. The Group's outlook for the year ending 31 March 2009 is contained on
page 51 of Vodafone's Annual Report for the year ended 31 March 2008.
Forward-looking statements
This press release contains forward-looking statements which are subject to risks and
uncertainties because they relate to future
events. In particular, such forward-looking statements include but are not limited to
statements with respect to Vodafone's expectations as
to expected savings from cost reduction initiatives; expectations as to levels of capital
expenditure and operating expenditure; targeted
revenue from the Group's total communications initiatives; the anticipated impact of exchange
rate movements on the Group's results for the
current fiscal year; the anticipated completion of the acquisition of a stake in Ghana
Telecommunications Company Limited and of the
acquisition by the Group's associated undertaking of Alltel Corp.; the anticipated launch of
operations in Qatar; and the Group's
expectations for revenue, adjusted operating profit, capitalised fixed asset additions and
free cash flow for the 2009 financial year
contained within the outlook statement on page 8 of this document. Some of the factors which
may cause actual results to differ from these forward-looking statements can be found by
referring to the information
under the headings "Cautionary Statement Regarding Forward-Looking Statements" and "Principal
Risk Factors and Uncertainties" in Vodafone
Group Plc's Annual Report for the year ended 31 March 2008. The Annual Report can be found on
the Group's website (www.vodafone.com).
ADDITIONAL INFORMATION
Germany Quarter ended 30 June
2008 2007 % change
£m £m £ Organic
Voice revenue 1,000 901
Messaging revenue 181 172
Data revenue 176 120
Fixed line revenue 14 4
Other service revenue 48 41
Service revenue 1,419 1,238 14.6 (1.9)
Italy Quarter ended 30 June
2008 2007 % change
£m £m £ Organic
Voice revenue 862 763
Messaging revenue 189 155
Data revenue 88 53
Fixed line revenue 97 6
Other service revenue 32 28
Service revenue 1,268 1,005 26.2 0.6
Spain Quarter ended 30 June
2008 2007 % change
£m £m £ Organic
Voice revenue 990 881
Messaging revenue 101 89
Data revenue 91 75
Fixed line revenue 60 5
Other service revenue 72 60
Service revenue 1,314 1,110 18.4 (2.5)
UK Quarter ended 30 June
2008 2007 % change
£m £m £ Organic
Voice revenue 822 860
Messaging revenue 236 208
Data revenue 110 84
Fixed line revenue 8 5
Other service revenue 58 52
Service revenue 1,234 1,209 2.1 2.1
KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES
MOBILE CUSTOMERS (1) - 1 APRIL 2008 TO 30 JUNE 2008
QUARTER TO 30 JUNE 2008
COUNTRY (in thousands) AT 1 APR NET OTHER AT 30 JUN PREPAID(3)
2008 ADDITIO MOVEMEN 2008
NS TS(2)
Europe
Germany 34,412 883 - 35,295 56.3%
Italy 23,068 (12) - 23,056 89.8%
Spain 16,039 171 - 16,210 41.2%
UK 18,537 (27) - 18,510 59.2%
92,056 1,015 - 93,071 64.5%
Other Europe
Albania 1,130 26 - 1,156 93.8%
Greece 5,460 82 - 5,542 68.3%
Ireland 2,264 (17) - 2,247 70.7%
Malta 200 (1) - 199 87.5%
Netherlands 4,252 108 - 4,360 42.7%
Portugal 5,209 58 - 5,267 77.9%
18,515 256 - 18,771 67.1%
Europe 110,571 1,271 - 111,842 64.9%
EMAPA
Eastern Europe
Czech Republic 2,698 53 - 2,751 48.2%
Romania 8,921 335 - 9,256 63.9%
Hungary 2,340 54 - 2,394 55.4%
Turkey 16,935 474 - 17,409 88.6%
Poland 2,653 (11) - 2,642 53.9%
33,547 905 - 34,452 69.0%
Middle East, Africa & Asia
Egypt 14,073 1,129 - 15,202 95.8%
Kenya 4,092 241 (4,333) - -
South Africa(4) 16,998 283 - 17,281 88.6%
India 44,126 5,069 - 49,195 90.9%
79,289 6,722 (4,333) 81,678 91.7%
Pacific
Australia 3,690 50 - 3,740 69.4%
New Zealand 2,366 35 - 2,401 73.4%
Fiji 223 74 - 297 96.9%
6,279 159 - 6,438 73.3%
EMAPA 119,115 7,786 (4,333) 122,568 84.6%
Group 229,686 9,057 (4,333) 234,410 76.2%
Reconciliation to
proportionate
Minority interests in above (23,050) (2,305) 542 (24,813)
Associates and investments
United States 30,230 656 21 30,907 5.5%
Other 23,620 1,107 3,791 28,518 96.6%
53,850 1,763 3,812 59,425
Proportionate(5) 260,486 8,515 21 269,022 82.5%
Europe 118,843 1,277 - 120,120 64.9%
EMAPA 141,643 7,238 21 148,902 85.4%
Notes:
1. Group customers are presented on a controlled (fully consolidated) and
jointly controlled (proportionately consolidated) basis in accordance
with the Group's current segments.
2. Other movements relate to Kenya being accounted for as an associate from
28 May 2008 following the allocation of shares in its public offering and
the acquisition of a customer base in the United States.
3. Prepaid customer percentages are calculated on a venture basis. At 30
June 2008, there were 852.3 million venture customers.
4. South Africa refers to the Group's interests in Vodacom Group (Pty)
Limited and its subsidiaries, including those located outside of South
Africa.
5. Proportionate customers are based on equity interests as at 30 June 2008.
The calculation of proportionate customers for Vodafone Essar also
assumes the exercise of call options that could increase the Group's
equity interest from 51.58% to 66.98%. These call options can only be
exercised in accordance with Indian law prevailing at the time of
exercise.
KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES
MOBILE CUSTOMER CHURN
ANNUALISED CHURN INFORMATION IN THE QUARTER TO
COUNTRY 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN
2006 2006 2007 2007 2007 2007 2008 2008
Germany(1) Total 22.1% 20.1% 24.2% 20.7% 20.8% 20.1% 22.6% 21.0%
Contract 13.5% 15.7% 14.9% 14.0% 14.7% 14.5% 15.1% 16.0%
Prepaid 29.5% 23.9% 31.9% 26.4% 26.0% 24.7% 28.5% 24.9%
Italy Total 21.7% 19.4% 20.6% 18.1% 25.0% 24.1% 27.5% 27.1%
Contract 13.6% 14.8% 14.1% 15.9% 14.7% 17.5% 18.1% 17.6%
Prepaid 22.4% 19.8% 21.2% 18.3% 25.9% 24.8% 28.4% 28.2%
Spain(2) Total 37.0% 23.4% 24.7% 22.4% 24.5% 23.6% 24.1% 23.6%
Contract 13.4% 15.3% 16.6% 14.8% 14.6% 15.2% 16.6% 16.4%
Prepaid 62.5% 32.8% 34.5% 31.7% 37.2% 34.6% 34.3% 33.6%
UK Total 37.6% 35.4% 29.8% 34.1% 35.5% 34.7% 35.7% 39.3%
Contract 18.8% 17.9% 17.4% 15.9% 15.3% 15.6% 17.3% 18.0%
Prepaid 49.9% 47.0% 37.9% 46.0% 48.8% 47.4% 47.8% 53.7%
Notes:
1. The customer churn for Germany in the quarter ended 31 December 2006
benefited from a regulatory driven change in the prepaid disconnection
policy, which reduced disconnections by 291,000 in the quarter. The
underlying prepaid customer churn, excluding this change, was 31.1% and
total churn was 24.0%.
2. The customer churn for Spain in the quarter ended 30 September 2006
includes the effect of 584,000 disconnections following a change in the
application of disconnection policies. The underlying customer churn,
excluding these disconnections, was 20.1%.
3G DEVICES(1)
QUARTER TO 30 JUNE 2008
COUNTRY (in thousands) AT 1 APR NET AT 30 JUNE
2008 ADDITI 2008
ONS
Germany 5,836 547 6,383
Italy 5,905 326 6,231
Spain 5,264 546 5,810
UK 3,632 473 4,105
Other Europe 3,555 334 3,889
Europe 24,192 2,226 26,418
EMAPA 2,868 572 3,440
Group 27,060 2,798 29,858
23,473 2,076 25,549
Consumer devices
Business devices 3,587 722 4,309
Group 27,060 2,798 29,858
Note:
1. 3G devices only include those in the Group's subsidiary and joint venture
undertakings. At 30 June 2008, there were an additional 4.2 million (1
April 2008: 4.0 million) registered Vodafone live! with 3G and Vodafone
Mobile Connect data card venture customers in the Group's associated
undertakings.
KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES
MOBILE VOICE USAGE VOLUMES
TOTAL VOICE MINUTES(1) IN THE QUARTER TO
COUNTRY (in millions) 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC 31 MAR 30
JUN
2006 2006 2007 2007 2007 2007 2008
2008
Europe
Germany 7,979 8,650 9,230 9,897 10,263 10,827 11,023
11,507
Italy 8,050 8,256 8,439 8,932 9,051 9,651 9,813
10,094
Spain 7,533 7,655 8,248 8,530 8,886 8,800 8,815
9,226
UK 7,579 8,160 8,790 8,963 9,112 9,434 9,508
9,650
Albania 166 160 167 196 215 188 179
189
Greece 2,216 2,113 1,985 2,168 2,282 2,244 2,262
2,395
Ireland 1,422 1,462 1,420 1,490 1,517 1,543 1,551
1,719
Malta 55 50 48 55 64 59 57
62
Netherlands 1,711 1,868 1,900 2,006 1,899 2,036 2,077
2,260
Portugal 1,606 1,586 1,612 1,657 1,836 1,764 1,763
1,839
Europe 38,317 39,960 41,839 43,894 45,125 46,546 47,048
48,941
EMAPA
Eastern Europe
Czech Republic 868 919 916 985 998 1,075 1,067
1,140
Hungary 980 1,030 1,030 1,110 1,149 1,206 1,224
1,284
Romania(2) 2,059 2,231 2,339 2,540 2,726 2,778 2,754
2,910
Turkey 6,451 5,781 6,224 6,583 6,551 6,157 6,155
6,876
Joint Venture 641 717 681 769 819 855 930
935
10,999 10,678 11,190 11,987 12,243 12,071 12,130
13,145
Middle East, Africa & Asia
Egypt 3,462 3,670 4,156 4,794 5,591 5,878 6,398
7,112
India(3) - - - 22,277 37,337 41,571 48,766
54,816
Joint Ventures(4)(5) 5,713 6,638 5,781 3,016 4,854 4,613 4,652
4,500
9,175 10,308 9,937 30,087 47,782 52,062 59,816
66,428
Pacific
Australia 2,141 2,238 2,222 2,179 2,252 2,422 2,402
2,417
New Zealand 597 672 771 793 834 888 904
928
Joint Venture 33 34 32 38 42 47 44
52
2,771 2,944 3,025 3,010 3,128 3,357 3,350
3,397
EMAPA 22,945 23,930 24,152 45,084 63,153 67,490 75,296
82,970
Group 61,262 63,890 65,991 88,978 108,278 114,036 122,344
131,911
Notes:
1. The total voice minute information presented in the table above
represents network minutes, or the volume of minutes handled by each
local network, and includes incoming, outgoing and visitor calls. The
voice minute information in respect of Germany and New Zealand reflects
billed minutes, under which calls are rounded up to the nearest minute
under certain tariffs.
2. During the quarter ended 31 December 2006, Romania restated usage volumes
for all quarters in the prior year. Previous volumes were billed minutes
and this has now been restated to network minutes.
3. Vodafone Essar is included from 8 May 2007 and usage for the year has
been rephased following the further integration of its operations into
the Group.
4. With effect from the quarter ended 30 September 2007, joint venture
minutes within the Middle East, Africa & Asia area include the Group's
share of minutes for Vodacom Group (Pty) Limited and its subsidiaries,
including those located outside of South Africa.
5. With effect from 28 May 2008, joint venture minutes within the Middle
East, Africa & Asia area exclude the Group's share of minutes for
Safaricom as it is accounted for as an associate following the allocation
of shares in its public offering.
KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES
AVERAGE MONTHLY REVENUE PER USER IN THE QUARTER(1)
COUNTRY 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN
2006 2006 2007 2007 2007 2007 2008 2008
Europe:
Germany Total 22.4 20.9 19.3 19.4 19.4 17.9 16.9 17.0
(EUR) Contract 39.0 36.7 34.7 34.9 35.3 33.1 32.0 32.4
Prepaid 7.6 7.0 6.1 6.2 6.1 5.5 5.0 4.8
Italy Total 26.9 25.6 23.3 23.1 22.6 21.6 20.8 21.3
(EUR) Contract 68.0 71.1 69.5 69.8 65.2 65.4 62.1 60.6
Prepaid 23.2 21.5 19.1 18.8 18.6 17.2 16.4 16.8
Spain Total 36.3 35.1 33.6 36.1 36.4 34.1 32.6 32.6
(EUR) Contract 55.2 51.3 48.9 52.0 51.7 48.0 45.4 45.4
Prepaid 15.4 16.0 15.0 16.4 16.5 15.5 14.9 14.4
UK Total 24.4 23.5 22.5 22.9 23.9 22.5 21.6 22.0
(GBP) Contract 46.5 43.7 43.4 43.5 45.8 42.2 41.2 41.2
Prepaid 9.4 9.5 8.6 8.9 9.0 9.0 8.4 8.6
Albania Total 2,304 2,080 1,860 1,837 2,011 1,773 1,701 1,764
(ALL) Contract 17,941 16,329 14,612 14,403 14,733 11,781 9,049 9,456
Prepaid 1,782 1,605 1,419 1,366 1,497 1,308 1,258 1,261
Greece Total 30.8 27.5 24.6 25.4 26.1 22.7 21.5 22.0
(EUR) Contract 66.8 61.6 56.5 60.0 62.0 53.4 49.7 51.2
Prepaid 13.4 11.4 10.1 10.2 10.4 8.9 8.4 8.4
Ireland Total 46.9 45.6 44.6 45.4 45.1 43.9 41.6 41.7
(EUR) Contract 99.4 94.5 92.5 94.3 94.1 89.4 85.8 85.4
Prepaid 28.0 27.9 27.2 27.1 26.6 26.3 24.1 23.7
Malta(2) Total 41.1 30.9 29.3 34.0 37.6 29.7 26.2 30.2
(EUR) Contract 98.4 93.7 90.7 93.8 95.9 87.2 74.2 75.9
Prepaid 34.6 23.9 22.3 27.0 31.0 23.1 20.4 24.1
Netherlands Total 36.9 31.7 36.1 37.6 38.5 35.9 35.4 36.9
(EUR) Contract 64.6 52.0 57.8 59.7 59.6 55.8 55.0 57.3
Prepaid 10.4 9.8 9.8 10.6 10.8 9.4 9.4 9.4
Portugal Total 24.0 22.4 21.7 22.0 23.4 22.1 21.2 21.4
(EUR) Contract 62.8 57.8 54.2 54.9 59.0 54.2 50.9 51.5
Prepaid 13.9 13.2 13.2 13.2 14.0 13.4 13.0 12.9
EMAPA Subsidiaries:
Australia Total 52.4 54.0 51.3 50.5 49.5 53.2 52.5 48.7
(AUD) Contract 96.4 98.8 97.1 96.2 93.6 96.8 90.7 88.4
Prepaid 36.2 37.2 34.1 33.0 32.0 35.2 35.7 31.5
Czech Republic Total 670 658 613 635 619 618 581 604
(CZK) Contract 966 946 897 916 889 891 844 869
Prepaid 334 331 295 320 320 319 296 316
Egypt Total 88.1 79.4 75.0 75.0 71.0 66.2 63.2 62.1
(EGP) Contract 309.7 289.9 295.8 308.8 304.5 281.2 286.7 293.5
Prepaid 66.7 61.4 59.1 60.4 58.2 55.6 52.6 51.4
Hungary Total 5,339 5,171 4,749 4,935 4,994 4,846 4,270 4,418
(HUF) Contract 9,097 8,529 7,847 8,010 7,832 7,484 6,639 6,931
Prepaid 3,359 3,250 2,839 2,873 2,930 2,801 2,362 2,379
India Total N/A N/A N/A N/A 361 349 350 332
(INR) Contract N/A N/A N/A N/A 886 899 910 904
Prepaid N/A N/A N/A N/A 291 283 287 272
New Zealand Total 46.6 49.1 47.6 44.8 47.1 49.2 48.1 44.8
(NZD) Contract 125.3 128.9 122.8 117.2 118.7 120.3 115.7 107.9
Prepaid 22.5 23.7 23.4 21.4 22.0 23.7 23.3 21.6
Romania(3) Total 11.0 10.7 9.5 10.8 10.9 10.8 9.7 10.3
(EUR) Contract 21.7 21.5 19.1 21.9 22.4 22.3 19.6 21.2
Prepaid 5.1 5.0 4.3 4.7 4.6 4.5 4.0 3.8
Turkey Total 16.5 14.4 14.4 15.7 16.3 14.6 13.2 13.6
(TRY) Contract 31.4 28.2 28.7 29.2 29.8 28.7 27.4 27.3
Prepaid 14.8 12.9 12.9 14.1 14.7 12.9 11.4 11.8
Notes:
1. The calculation of ARPU has been revised and now excludes fixed line
revenue, fixed advertising revenue and revenue related to business
managed services. Historical ARPU numbers have been restated inline with
this new methodology.
2. Malta adopted the euro from 1 January 2008. Historical ARPU numbers have
been translated at the 1 January 2008 Maltese lira/euro exchange rate.
3. On 1 October 2007, Romania rebased all of its tariffs and changed its
functional currency from US dollars to euros. Historical ARPU numbers
have been translated at the 1 October 2007 US$/euro exchange rate.
news service from the London Stock Exchange
END
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