Vodafone Group’s 6.8 percent drop in revenue to €11 billion during Q3 fiscal 2018-19 was due to poor performance of the company under the leadership of CEO Nick Read in most of the regional markets including Germany, Italy, Spain, UK and Africa.

Europe contributed €8.145 (–5.6 percent) billion revenue for Vodafone. Rest of the World chipped in €2.547 (–11.1) billion in revenue. Europe generated almost 80 percent of the total revenue in the December quarter of fiscal 2018-19.

Vodafone did not reveal the investment of the company in both Europe and Africa during the third quarter. Vodafone Group started focusing on 4G-driven data markets in the recent years resulting into slow growth.

Germany

Vodafone Germany’s service revenue grew 1.1 percent to €2.564 billion driven by strong customer base growth in mobile and fixed line, partially offset by a reduction in wholesale MVNO revenues. In Q2, Vodafone Germany’s service revenue grew 1.7 percent.

Deutsche Telekom’s German business, the main rival of Vodafone Germany, reported 0.9 percent drop in operating revenue to €5.4 billion in the third quarter of 2018 ended September 30 due to changes in accounting standards. Adjusted EBITDA of Deutsche Telekom Germany rose 2.1 percent to €2.2 billion.

Vodafone Germany’s mobile service revenue grew 0.2 percent against 0.9 percent growth in Q2 as a higher contract customer base was largely offset by a decline in MVNO revenue. It added 165,000 contract customers in Q3.

Vodafone Germany reported 1.7 percent reduction in mobile contract churn. Contract ARPU declined, driven by the mix shift towards SIMonly, multi-SIM family contracts and convergence. Fixed service revenue grew 2.5 percent against 3 percent growth in Q2. It added 73,000 broadband customers in Q3 against 69,000 in Q2.

Italy

Vodafone Italy’s service revenue fell 4.6 percent to €1.324 billion, reflecting significant price competition in mobile business following the arrival of Iliad. In Q2, the drop in Vodafone Italy’s service revenue was 6.3 percent. Mobile service revenue declined 8.4 percent vs. 9.6 percent drop in Q2.

TIM, the main rival of Vodafone Italy, said organic EBITDA of the domestic business unit in Italy is expected to be lower in mid-single digit in 2018 compared to the previous year. The total organic figure is expected to be approximately 8.1 billion euro in 2018.

Vodafone Italy introduced secondary brand called “ho” in June to address the value segment of the market and added around one million customers. Active pre-paid customer base fell 122,000 in Q3. Prepaid ARPU dipped 3.3 percent as customers migrated to lower tariff plans. Fixed service revenue grew 11.3 percent against 8.6 percent growth in Q2. This was driven by strong consumer customer base growth and a price increase in October,

Vodafone Italy added 78,000 broadband households vs 60,000 in Q2. Vodafone Italy also added 62,000 converged customers, taking our total converged customer base to 896,000.

UK

Vodafone UK’s service revenue grew 0.9 percent to €1.496 billion, driven by growth in consumer mobile and fixed line, as well as in business fixed. In Q2, 1.1 percent was the growth in service revenue of Vodafone UK.

Vodafone UK cancelled Talkmobile brand, its low-end mobile brand. Vodafone has added 109,000 contract customers against 104,000 in Q2. There was a 2.3 percentage point improvement in contract churn.

Vodafone UK’s fixed service revenue grew 7.3 percent vs 7 percent in Q2 driven by strong momentum in Consumer broadband and by growth in Business. Vodafone UK added 46,000 broadband customers in Q3, increasing total base to 525,000.

BT, the main rival of Vodafone UK, reported revenue of £11.588 billion (–2 percent) in the first half of fiscal 2018-19 as growth in its consumer business was offset by regulated price reductions in Openreach and declines in enterprise business.

Spain

Vodafone Spain’s service revenue fell 7.4 percent to €1.144 billion due to focus on value segment, and the decision against renewing unprofitable football content rights. In Q2, the drop in Vodafone Spain’s service revenue was 7.2 percent. Business revenues declined, with fixed stable and pricing pressure in mobile.

Vodafone Spain lost 6,000 broadband customers against a loss of 69,000 in Q2. It added 13,000 TV customers against a loss of 66,000 in Q2. Vodafone Spain lost 94,000 mobile contract customer against a loss of 106,000 in Q2.

Other Europe

Vodafone’s Other Europe, which represents 12.1 percent of Group service revenue, grew 2.2 percent to €1.157 billion. The Q2 revenue growth was 2.3 percent. Vodafone’s Q3 service revenue grew 1.4 percent in Ireland, 2.9 percent in Portugal, 3 percent in Greece.

Vodacom

Vodacom Group, a main telecom operator in Africa, reported service revenue growth of 1.5 percent to €1.149 billion — driven by South Africa. Vodacom Group reported service revenue growth of 6.3 percent in Q2.

Vodacom Group lost 34,000 pre-paid customers to reach 47.2 million. Vodacom Group has added 86,000 contract customers, principally in the business segment.

Vodacom’s International operations outside of South Africa, which represent 26.1 percent of Vodacom Group service revenue, grew 11.1 percent driven by strong data growth and M-Pesa.

Service revenue improved in Tanzania, and growth in Mozambique and the DRC remained strong. Vodafone Turkey’s service revenue grew 14.8 percent to €520 million driven by higher Consumer contract customer base, increased mobile data revenue, and strong fixed line customer growth.

Vodafone’s service revenue from other markets grew 5.3 percent to €669 million, supported by growth in Egypt and Ghana.

Baburajan K