Vodafone Group has revealed its financial performance for first-half of fiscal 2022 and achievements from its latest strategies guided by CEO Nick Read.
Financial performance
Vodafone revenue has increased by 5 percent to €22.5 billion against €21.4 billion in FY21 H1, driven by service revenue growth in Europe and Africa and a recovery in handset sales.
Adjusted EBITDAaL increased by 6.5 percent to €7.6 billion due to revenue growth and legal settlement in Italy. The Adjusted EBITDAaL margin was 0.7 percentage points higher year-on-year at 33.6 percent.
Operating profit decreased by 21.9 percent to €2.6 billion (FY21 H1: €3.4 billion), reflecting a prior year gain of €1.0 billion arising on the merger of Vodafone Hutchison Australia into TPG Telecom.
Strategies
Vodafone CEO Nick Read said the telecom operator has substantially delivered the first phase of its strategic ambition to reshape Vodafone into a stronger connectivity provider.
Four key strategic priorities
# deepening customer engagement
# accelerating transformation to a digital first organization
# improving the utilisation of assets
# optimising portfolio
Achievements
# mobile contract customer loyalty in Europe improved by 2.3 percentage points
# added 4.3 million NGN broadband customers in Europe
# increased the number of homes passed with 1 gigabit capable fixed-line network in Europe to 43.7 million
# launched 5G in 240 cities across 10 of our European markets
# delivered €1.3 billion net reduction in operating expenditure in Europe and Common Functions
# agreed 8 network sharing partnerships with 9 mobile network operators in 7 markets
Vodafone 5G is available in 244 markets in H1 fiscal 2022 as compared with 127 markets in H1 fiscal 2021. Vodafone’s gigabit connections are available to 46.5 million vs 39.4 million.
Vodafone’s IoT service connects 136 million devices. Vodafone IoT has been recognised as a leader in managed connectivity by Gartner every year since 2014. Vodafone IoT generates €0.9 billion annual revenue with double-digit revenue growth and a strong double-digit ROCE. The total addressable market is €10 billion and expected to grow 16 percent per annum.
Vodacom Group and Safaricom together have 57 million M-Pesa customers, with M-Pesa transaction value of $26.8 billion per month in the first six months of FY22.
