Vodafone posted 4 percent increase in revenue in H1 2011-12
at 23.52 billion pounds boosted by a 6.8 percent income growth in the Africa,
Middle East and Asia Pacific region.
Vodafone’s financial performance in different regions in H1
FY 2011-12
Europe
Vodafone’s total revenue from Europe increased by 2.8
percent to 16.33 billion pounds. Vodafone is experiencing MTR reductions,
competitive pricing pressures and continued economic weakness in Europe.
Germany
Service revenue at 3.8 billion pounds was stable as strong
data and enterprise revenue growth was offset by the impact of an MTR
cut.
Data revenue increased by 22.7 percent driven by the
increased penetration of smartphones and Superflat Internet tariffs.
Enterprise revenue grew by 4.7 percent driven by customer
wins and the success of converged service offerings.
EBITDA increased by 1.1 percent driven by the revenue
trends. The EBITDA margin reduced by 0.3 percentage points reflecting
investment in customer acquisition and retention.
The roll out of LTE has continued, following the launch of
services in the 2011 financial year, with 52,000 LTE customers at 30 September
2011.
Italy
Service revenue declined by 2.3 percent to 2.7 billion
pounds due to weak macro economic conditions, intense competition and the
impact of an MTR cut effective from 1 July 2011. In September 2011 prepaid
tariffs were refreshed with the launch of new integrated tariffs.
Data revenue increased by 18.8 percent resulting from a
higher penetration of smartphones and strong mobile internet.
Enterprise revenue grew by 6.4 percent driven by growth in
the customer base and the success of Vodafone One Net, which enables customers
to combine their fixed and mobile communications into a single service with one
number.
Spain
Service revenue declined by 9.6 percent to 2.3 billion
pounds, impacted by intense competition, general economic weakness and high
unemployment.
Data revenue increased by 12.1 percent, benefiting from the
penetration of integrated voice and data tariffs launched in April 2011 and
growth in mobile internet.
EBITDA declined by 24.9 percent, with a 6.1 percentage point
fall in the EBITDA margin, due to the lower revenue and higher acquisition and
retention costs.
UK
Service revenue grew by 2.1 percent to 2.4 billion pounds,
driven by an increase in enterprise and data revenue as well as net customer
additions and some price increases in consumer contract and prepaid. Growth was
impacted by an MTR cut.
The increase in enterprise revenue was driven by the success
of integrated offerings and strong data roaming.
Data revenue grew by 20.4 percent resulting from the higher
penetration of smartphones with a high percentage being sold with data bundles.
EBITDA increased by 5.6 percent, with a 0.7 percentage point
improvement in the EBITDA margin, as a result of higher revenue partially
offset by investment in customer acquisition and retention.
Africa, Middle East and Asia Pacific
Revenue from the Africa, Middle East and Asia Pacific region
grew by 7.2 percent to 6.9 billion. This includes a 1.4 percentage point
adverse impact from foreign exchange rate movements. The revenue growth was
driven by customer and data growth, partially offset by the impact of MTR
reductions. Growth was driven by a strong performance in India, Qatar and
Ghana, continued growth from Vodacom and a return to growth in Egypt in Q2.
EBITDA grew by 3.6 percent after a 1.7 percentage point
adverse impact from foreign exchange rate movements. EBITDA growth was driven
primarily by strong growth in India and Vodacom, as well as improved
contributions from Qatar, Ghana and New Zealand offset in part by declining
EBITDA margins in Egypt and the impact of network and customer service issues
in Australia.
India
India is an important mobile market for Vodafone.
Service revenue grew by 18.4 percent to 2.09 billion pounds,
driven by a 25.5 percent increase in the customer base, strong growth in
incoming and outgoing voice minutes and 66.1 percent growth in data revenue.
Growth also benefited from operators starting to charge for SMS termination in
Q2.
At 30 September 2011 data customers totalled 27.5 million, a
year-on-year increase of 142 percent. This was driven by an increase in data
enabled handsets and the impact of successful marketing campaigns.
Whilst the market remains highly competitive, the effective
rate per minute is stabilising as operators increase headline voice
tariffs and focus on promotional offers.
Following the launch of commercial 3G services in February
2011, 3G was available to Vodafone customers in 534 towns and cities across 20
circles at 30 September 2011.
EBITDA grew by 14.8 percent driven by the increase in
revenue and economies of scale, partially offset by higher customer acquisition
costs and increased interconnection costs.
Vodacom
Service revenue grew by 7.3 percent to 2.46 billion pounds,
primarily driven by South Africa where growth in data revenue was partially
offset by the impact of an MTR cut.
Data revenue increased by 37.6 percent, driven by the higher
penetration of smartphones and data bundles.
Vodacom’s operations outside South Africa continued to
improve, with strong service revenue growth of 19.5 percent, driven by
customer net additions. M-Pesa continues to perform well in Tanzania with
over 10 million users now registered. Trading conditions remain challenging in
the Gateway operations.
EBITDA increased by 8.1 percent, driven by service revenue
growth.
Income from other Africa, Middle East and Asia Pacific grew
to 1.82 billion pounds.
Organic service revenue, which now includes Australia, was
flat year-on-year.
New Zealand’s service revenue growth was impacted by MTR
cuts. In Australia network and customer service issues experienced in the
Group’s prior financial year adversely impacted on service revenue growth.
In Egypt the economic environment remains challenging.
Whilst Egypt service revenue was flat year-on-year in H1, growth in Q2 was 1.2
percent, driven by an increase in the customer base and improved data usage
offsetting a decline in messaging and visitor revenue.
In Qatar a 35.4 percent increase in customers resulted in
service revenue growth of 48.1 percent despite significant price competition in
the market.
Service revenue in Ghana grew by 32.5 percent, driven
primarily by an increase in the customer base.
Ghana launched its 3G network on 29 June 2011.
EBITDA was down 6.6 percent, driven by the service revenue
decline in Australia and the challenging economic and competitive environment
in Egypt, partially offset by growth in Qatar, Ghana and New Zealand.
Integration in Australia continues to progress, with synergies exceeding
original expectations to date.
By Telecomlead.com Team
