Vodafone, which has exited from Spain and Italy due to competition, has revealed its key achievements in remaining telecom markets during April-June 2024.
Vodafone’s revenue rose by 2.8 percent (Q4: 2.8 percent) to €9 billion during the first quarter of fiscal 2024-25.
Vodafone has generated sales revenue of €3,095 million (down 1.5 percent) in Germany, €1,689 million (up 2 percent) in the UK, €1,382 million (up 1.6 percent) in other Europe, €664 million (up 54 percent) in Turkey, and €1,813 million (up 1.6 percent) in Africa.
Vodafone Spain and Vodafone Italy are discontinued operations. Vodafone is waiting for final approval for merging its UK business with Three.
“Our performance in the first quarter is consistent with our full year guidance, which we reiterate today. We continue to deliver strong revenue growth in Africa and Turkey, whilst lower inflation is slowing revenue growth in Europe and accelerating Group EBITDAaL growth,” Vodafone Group CEO Margherita Della Valle said.
Vodafone said its operating profit increased by 42.9 percent to €1.5 billion, primarily driven by a €0.7 billion gain on the disposal of an 18 percent stake in Indus Towers, leaving Vodafone with a 3.1 percent shareholding.
Vodafone has recently reduced its stake in Vantage Towers to 50 percent for €1.3 billion.
Vodafone did not reveal its progess on 5G network or 5G related investment.
Germany
Vodafone Germany’s revenue fell by 1.5 percent to €3.095 billion due to broadband and TV customer losses and lower regulated rates for terminating mobile calls.
Fixed service revenue dropped by 2.0 percent, impacted by reduced broadband and TV customers.
Mobile service revenue decreased by 0.8 percent due to the phasing of Business project revenue, reduced consumer ARPU growth due to promotional competition, and mobile termination rate cuts.
Broadband customers decreased by 55,000 in Q1, with a significant loss on its gigabit-capable network.
TV customer base declined by 0.7 million due to the MDU transition.
Mobile contract customer base dropped by 9,000 despite a focus on higher-value branded and direct sales channels.
The company lost 30,000 corporate accounts in Business but added 2 million IoT connections, driven by demand from the automotive sector.
UK
Vodafone UK’s revenue rose by 2 percent to €1.689 billion, supported by service revenue and the appreciation of the pound sterling against the euro.
Mobile contract customer base increased by 22,000, but the total contract customer base declined by 29,000 in Q1 due to losses in low-value Business contracts.
The digital prepaid sub-brand VOXI added 17,000 new customers during the quarter.
Vodafone UK added 44,000 broadband customers in Q1 and announced that it now offers the fastest speeds in more locations across the UK than any other major provider, covering 16.2 million households. The Pro II broadband product provides the UK’s fastest WiFi technology throughout the home.
Other Europe
Vodafone Other Europe (Portugal, Ireland, and Greece) saw revenue increase by 1.6 percent to €1.382 billion due to higher service and equipment revenue.
Service revenue increased despite lower mobile termination rates, driven by price actions in most markets.
Added 121,000 mobile contract customers and 12,000 broadband customers.
Turkey
Revenue surged by 54 percent to €664 million, driven by re-pricing actions to reflect high inflation and value accretive base management activities.
Added 69,000 mobile contract customers, including migrations from prepaid customers.
Africa
Revenue increased by 1.6 percent to €1.813 billion, supported by higher service and equipment revenue.
Service revenue grew by 10 percent, driven by price increases in South Africa and strong growth in Egypt.
South Africa’s service revenue growth was supported by Consumer mobile and fixed line growth in both Consumer and Business sectors.
Egypt’s service revenue was bolstered by data growth, commercial campaigns, price increases, and financial services product Vodafone Cash.
Vodacom’s international markets achieved service revenue growth due to a higher customer base and strong demand for M-Pesa and data services.
M-Pesa revenue grew by 11 percent, accounting for 26.9 percent of service revenue.
Vodafone South Africa added 53,000 mobile contract customers, with 77.9 percent using data services. The VodaPay super-app gained 6.9 million registered users.
Vodafone Egypt added 137,000 contract customers and 0.6 million prepaid mobile customers, with Vodafone Cash reaching 8.7 million users and adding 0.5 million users.
Vodacom’s international markets added 0.9 million mobile customers, with a mobile customer base reaching 55.1 million and 66.8 percent of active customers using data services. The M-Pesa customer base reached 22.2 million.
Baburajan Kizhakedath
