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In April 2021, we
became the first operator in Europe to launch a standalone 5G
network. This enables higher speeds, enhanced reliability and
ultra-low latency, in addition to using 20% less energy
on customers’ devices. Adjusted EBITDA grew by 1.8%* as the
benefit synergy delivery and ongoing cost efficiencies were
partially offset by a -1.5 percentage point year-on-year
impact from lower roaming and visitors, and lower wholesale
revenue. The adjusted EBITDA margin was 0.4* percentage points
higher year-on-year and was 43.4%. We have continued to make good
progress on integrating Unitymedia, with the rebranding,
harmonisation of our internet & TV portfolio, and
the organisational integration completed during the year. We
are eight months ahead of plan with respect to our cost and capital
expenditure synergy targets and remain on track to deliver the
remaining synergies. Italy: 12 % of Group service revenue FY21 €m
FY20 €m Reported change % Organic change* % Total revenue 5,014
5,529 (9.3) Service revenue 4,458 4,833 (7.8) (7.5)
Other revenue 556 696 Adjusted EBITDA 1,597 2,068
(22.8) (12.7) Adjusted EBITDA margin 31.9% 37.4% Reported total
revenue decreased by 9.3% to €5.0 billion, driven by continued
price competition in the mobile market, as well as lower roaming,
visitor and equipment revenue. On an organic basis, service revenue
declined by 7.5%* (Q3: -7.8%*, Q4: -7.8%*). The year-on-year
impact from the decline in roaming and visitor revenue was -2.1
percentage points (Q3: -1.9 percentage points, Q4: -1.2 percentage
points). Mobile service revenue declined 10.5%* (Q3: -10.7%*, Q4:
-9.3%*) reflecting lower roaming and visitor revenue, a reduction
in the active prepaid customer base year-on-year, which began to
stabilise in Q4, and price competition in the value segment.
Market mobile number portability (‘MNP’) volumes were approximately
20% lower year-on-year, reflecting retail lockdowns. Our second
brand ‘ho.’ continued to grow, with 662,000 net additions
during the year and now has 2.5 million customers. Quarterly
net additions slowed in Q4, although returned to growth towards the
end of the quarter. During the year, we signed mobile wholesale
agreements with PostePay and Digi. We will start to migrate
PostePay customers onto our network in the first quarter of FY22.
Fixed service revenue grew by 1.4%* (Q3: 1.1%*, Q4:-3.8%*) driven
by 90,000 broadband customer additions. In total, we now have
almost 3.0 million broadband customers. The quarter-on-quarter
slowdown in Q4 service revenue trends reflected higher Business
project revenue in the prior year. However, Business demand was
strong overall, supported by our NPS leadership and now represents
approximately 40% of fixed revenue. Our total Consumer converged
customer base is now 1.2 million (39% of our broadband base), an
increase of 105,000 during the year. Through our own next
generation network and partnership with Open Fiber, our broadband
services are now available to 8.4 million households. We also cover
3.4 million households with fixed-wireless access, offering speeds
of up to 100Mbps. Adjusted EBITDA declined by 12.7%* reflecting a
-4.0 percentage point year-on-year impact from lower roaming and
visitors, and lower service revenue, partially offset by continued
good cost control. The adjusted EBITDA margin was 1.3* percentage
points lower year-on-year and was 31.9%. UK: 13 % of Group service
revenue FY21 €m FY20 €m Reported change % Organic change* % Total
revenue 6,151 6,484 (5.1) Service revenue 4,848 5,020
(3.4) (0.8) Other revenue 1,303 1,464 Adjusted EBITDA
1,367 1,500 (8.9) (7.3) Adjusted EBITDA margin 22.2%
23.1% Reported total revenue decreased by 5.1% to €6.2 billion,
primarily due to the depreciation of the local currency versus the
euro, and lower roaming, visitor and equipment revenue. On an
organic basis, service revenue decreased by 0.8%* (Q3: -0.4%*,
Q4: -0.6%*) as good customer base growth and strong Business
demand, was offset by lower roaming, visitor and incoming
revenue. The year-on-year impact from the decline in roaming
and visitor revenue was -2.4 percentage points (Q3: -2.3
percentage points, Q4: -1.5 percentage points). Mobile
service revenue declined 3.3%* (Q3: -3.6%*, Q4: -1.8%*), as lower
roaming, visitor and incoming revenue offset good customer base
growth. During the year, we maintained our good commercial
momentum, supported by a significant shift in sales mix, with
digital sales growing significantly to 39%. We also benefited from
Business demand, strong iPhone sales, and improved customer
loyalty. Contract churn improved 1.1 percentage point year-on-year
to 13.0%. In total, we added 219,000 customers to our mobile
contract base in FY21. Our digital sub-brand ‘VOXI’ also continued
to grow strongly, with 176,000 customers added during the year,
supported by the launch of new propositions. Fixed service revenue
grew by 5.6%* (Q3: 7.9%*, Q4: 2.2%*) and our commercial momentum
remained strong with 192,000 net customer additions during the
year. The quarter-on-quarter slowdown in Q4 was driven by the
lapping of strong Business fixed performance in the prior year and
lower wholesale revenue. In March, we launched Vodafone
‘Pro Broadband’ which combines fixed and mobile connectivity
to provide ‘unbreakable’ connectivity. Pro Broadband customers
also benefit from super Wi-Fi and dedicated customer support.
We now have 911,000 broadband customers, of which 459,000 are
converged. Business demand for our SME and corporate products
remained strong, including productivity and security solutions.
Adjusted EBITDA decreased by 7.3%* reflecting the year-on-year
impacts from lower roaming and visitors of -4.8 percentage
points and a prior year one-off licence fee settlement of -4.6
percentage points. Excluding these we continued to grow adjusted
EBITDA, supported by strong cost control, with operating expenses
7.5% lower year-on-year. Our adjusted EBITDA margin was 1.1*
percentage points lower year-on-year at 22.2%. To support our
continued investment in our networks, products and services, we
announced that an annual price increase of Consumer Price Index
plus 3.9% will be applied to all broadband and mobile contracts
signed from 9 December 2020, taking effect from April 2021. In
March 2021, we acquired 40MHz of spectrum in the 3.6GHz band
for next-generation 5G mobile services at a cost of €206
million. The new spectrum acquired will enable us to
significantly expand 5G network capacity to meet the growing demand
for fast, reliable, high-quality data services. 25 Vodafone
Group Plc Annual Report on Form 20-F 2021 Strategic report
Governance Financials Other information
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