Interim Management Statement
Vodafone Group Plc
19 July 2007
19 July 2007
INTERIM MANAGEMENT STATEMENT FOR THE FIRST QUARTER
Vodafone Group Plc ('Vodafone') today announces its interim management statement
for the quarter ended 30 June 2007.
The key highlights of the quarter are:
* Group revenue of £8.3 billion, representing 7.5% growth on last year,
with organic growth of 4.0%
* Group service revenue growth of 8.0% with growth of 4.2% on an organic
basis. Organic service revenue growth of 1.4% for Europe and 18.2% for EMAPA
* 9.1 million proportionate organic net mobile additions for the quarter
compared with 4.8 million for the same quarter last year. Total proportionate
mobile customer base at 30 June 2007 of 232.0 million
* Group mobile customer base for subsidiaries and joint ventures of 200.4
million at 30 June 2007, including 30.8 million in Vodafone Essar in India.
Organic net mobile additions of 9.3 million in the quarter
* Further strong growth in retail net customer additions of 1.6 million at
Verizon Wireless
* 2.6 million 3G devices added in the quarter, bringing the total 3G
device base to 18.5 million. Organic growth in non-messaging data revenue of
32.2%
* Vodafone At Home now available in 11 markets and Vodafone Office in 12
markets
* Vodafone reiterates its current year outlook with the financial
performance for the quarter in line with expectations
Arun Sarin, Chief Executive, commented:
'We have made a good start to the financial year, with a strong performance from
the EMAPA region offsetting continued challenging markets in Europe. We continue
to make progress in the execution of our strategic objectives. Our new Indian
business has delivered strong growth in the quarter, with its integration into
the Group progressing well. We are reiterating our guidance for the current
financial year.'
GROUP REVIEW
Following the introduction of the Transparency Rules in the UK in January 2007,
which implement the EU Transparency Directive, the Group is providing an interim
management statement that provides details of the Group's performance and
financial position, together with any material events, for the quarter.
Operating review
Quarter ended 30 June
Group revenue 2007 2006 % change
£m £m £ Organic
Total revenue 8,253 7,679 7.5 4.0
======= =======
Voice revenue 5,934 5,599 6.0 1.2
Messaging revenue 950 851 11.6 9.5
Data revenue 452 334 35.3 32.2
Fixed line operators
and DSL revenue 372 358 3.9 10.8
Other service revenue 5 -
------- -------
Service revenue 7,713 7,142 8.0 4.2
======= =======
Group revenue increased by 7.5% to £8.3 billion. The net impact of acquisitions
and disposals, principally due to Turkey and India, contributed 5.3 percentage
points to revenue growth offset by 1.8 percentage points from adverse movements
in exchange rates.
The Europe region recorded organic total revenue growth of 1.1%, whilst the
EMAPA region delivered organic growth of 18.7%. The quarter showed continued
strong performances in Spain and several of the Group's emerging market
operations, with sustained revenue growth in the UK. The overall competitive
environment in Europe remains challenging.
Organic voice revenue growth of 1.2% reflects continued strong growth in
outgoing voice minutes offset by effective price declines, together with the
expected impact from the Group's European roaming price reductions and the
cancellation of top up fees in Italy. Data revenue growth remains strong driven
by business services and the increasing penetration of 3G devices, up over 100%
since June last year to 18.5 million, supporting strong growth in connectivity
revenue.
Group mobile customers in subsidiaries and joint ventures increased to 200.4
million at the end of the quarter from 163.0 million at 31 March 2007, with 30.8
million added through Vodafone Essar (formerly Hutchison Essar) in India. On a
proportionate basis, the closing customer base reached 232.0 million, with 9.1
million organic proportionate mobile net additions in the quarter.
Review of strategic objectives
The Group continues to focus on executing against its strategic objectives.
Revenue stimulation and cost reduction in Europe
The Group's focus in Europe is to drive additional usage and revenue from core
voice and messaging services and to reduce the cost base.
Outgoing voice revenue growth for the quarter in Europe was 0.5%, up slightly
compared with the previous quarter. A 20.3% fall in effective price per minute
has been offset by initiatives to stimulate additional usage, with 26.2% growth
in total voice usage, including 15.6% growth on a per customer basis. Messaging
revenue growth for the quarter was 8.5%, up slightly on the previous quarter
principally through successful propositions in Italy.
12.6 million Vodafone Passport customers are already benefiting from lower
roaming prices. In addition, all European customers are benefiting from the
Group having delivered on its commitment to reduce roaming prices by 40% in
April 2007 compared with summer 2005.
The Group's cost reduction programmes remain on track. The majority of operating
companies have now started outsourcing IT application development and
maintenance to EDS and IBM and the Group's data centre consolidation programme
is substantially complete. For the 2008 financial year, the Group expects for
the total of the Europe region and common functions mobile capital expenditure
to be 10% of mobile revenue and mobile operating expenses to be broadly stable
when compared with the 2006 financial year.
Innovate and deliver on our customers' total communications needs
The Group is targeting an additional 10% of revenue from its total
communications initiatives over the next three years.
Fixed location pricing plans have now been launched in six markets for consumers
and 12 markets for business customers. The Group now has 3.5 million Vodafone At
Home customers on fixed location tariffs and 2.5 million Vodafone Office
customers.
Vodafone is now offering fixed consumer broadband services through its mobile
operations in ten markets, with four markets launching services since the end of
May. In addition, Arcor in Germany had 2.2 million DSL customers at 30 June
2007, up 47% compared with June last year.
During the quarter, Germany, Italy, the Netherlands and the UK refreshed their
mobile internet offering and launched fixed price browsing tariffs to encourage
greater data usage, benefiting from partnerships with industry leading partners
such as Google, YouTube, MySpace and eBay.
Since July 2007, the Group's European customers have been able to benefit from
lower data roaming charges, with a daily fixed rate of €12 for unlimited usage.
Overall, Group data revenues have increased by 32.2% on an organic basis
compared with the same quarter last year.
Deliver strong growth in emerging markets
Further strong performances have been delivered during the quarter in the
Group's emerging markets, with organic service revenue growth of 42.8% in Egypt,
26.8% in Romania and 20.6% from Vodacom.
The Group's more recent acquisitions in India and Turkey have delivered strong
year on year total revenue growth in local currency of 50% and 32% respectively,
calculated by assuming the Group owned these businesses for the whole of both
quarters.
Actively manage our portfolio to maximise returns
On 8 May 2007, the Group completed its acquisition of companies with interests
in Vodafone Essar in India for a cash consideration of US$10.9 billion and
acquired debt of approximately US$2 billion. The Group has also granted Essar
options to sell all or part of its shareholding for a maximum consideration of
US$5 billion between the third and fourth anniversary of the completion of the
acquisition.
Net debt at 30 June 2007 has increased significantly since 31 March 2007 with
the contribution from free cash flow generated in the quarter more than offset
by the increase in net debt of approximately £9 billion resulting from the
transactions and agreements in India.
On 18 July 2007, the Group received $1.3 billion in respect of a 4.99% stake in
Bharti Airtel following an irrevocable agreement by a Bharti group company on 9
May 2007 to purchase 5.60% of Bharti Airtel by November 2008.
Outlook
The overall performance for the quarter is consistent with expectations and the
Group is therefore reiterating its outlook statement for the year ending 31
March 2008. The Group's expectations for average foreign exchange rates for the
2008 financial year are unchanged from those announced on 29 May 2007.
Group revenue is expected to be in the range of £33.3 billion to £34.1 billion.
Adjusted operating profit is expected to be in the range of £9.3 billion to £9.8
billion, with the Group EBITDA margin lower year on year. Total depreciation and
amortisation charges are anticipated to be around £5.8 billion to £5.9 billion,
higher than the 2007 financial year, primarily as a result of the Vodafone Essar
acquisition.
The Group expects capitalised fixed asset additions to be in the range of £4.7
billion to £5.1 billion, including in excess of £1.0 billion in India.
Reported free cash flow is expected to be in the range of £4.0 billion to £4.5
billion. This is after taking into account £0.6 billion of expected tax payments
and associated interest in respect of the potential settlement of a number of
long standing tax issues, a net cash outflow of approximately £0.8 billion
anticipated in respect of India and £0.5 billion from deferred payments and the
reversal of certain timing differences that benefited the 2007 financial year.
The outlook for free cash flow is stated including the impact of known spectrum
or licence payments only.
REGIONAL RESULTS
Europe
Quarter ended 30 June
2007 2006 % Change
£m £m £ Organic
Total revenue 6,219 6,220 - 1.1
======= =======
Voice revenue 4,315 4,469 (3.4) (2.4)
Messaging revenue 764 711 7.5 8.5
Data revenue 398 312 27.6 28.9
Fixed line operator
and DSL revenue 368 340 8.2 9.7
Other service revenue 5 -
------- -------
Service revenue 5,850 5,832 0.3 1.4
======= =======
Quarter ended 30 June
2007 2006 % Change
Service revenue £m £m £ Organic Underlying(1)
Germany 1,238 1,339 (7.5) (6.3) (3.0)
Italy 1,005 1,051 (4.4) (3.1) 0.4
Spain 1,110 1,001 10.9 12.5 17.9
UK 1,209 1,153 4.9 4.9 5.6
Arcor 375 346 8.4 9.9
Other 1,028 1,036 (0.8) 0.6 4.7
Eliminations (115) (94)
------- -------
5,850 5,832 0.3 1.4 4.6
======= =======
Key performance indicators
Germany Italy Spain UK Other Europe
Organic growth % % % % % %
Closing mobile customers 7.4 17.3 8.8 9.0 8.3 10.0
Mobile voice usage 30.0 16.2 22.2 24.4 9.0 20.5
(1) Estimated impact of revenue arrangements now presented net of associated
direct costs and termination rates reductions
Customers
The Europe region recorded 2.3 million net customer additions in the quarter
compared with 0.9 million in the same quarter last year, with year on year
growth in both contract and prepaid net additions.
Strong net additions in Italy and the UK reflect changes in commercial
strategies implemented after the June quarter last year. In Germany, the
increase in net additions is partly attributable to wholesale contract
arrangements started in the quarter.
The total customer base reached 103.5 million at the end of the quarter, up
10.0% on an organic basis since the same quarter last year.
Usage
Total voice usage increased by 20.5% on an organic basis compared with the same
quarter last year. Outgoing call volumes increased by 26.2% on an organic basis
resulting from a 9.2% growth in average customers and a 15.6% growth in outgoing
usage per customer, reflecting similar overall trends to the previous quarter.
Total outgoing voice usage growth remained strong in the region's major markets,
with improved growth in Italy from various successful commercial initiatives
offsetting lower growth in Spain arising from lower promotional activity than in
the prior year.
Revenue
Organic service revenue growth for the quarter was 1.4%, compared with 1.9%
growth for the previous quarter. The lower growth rate principally reflects the
impact in the current quarter from the cancellation of top up fees in Italy and
the Group's reduction of European roaming prices by 40% between summer 2005 and
April 2007, with particular impact this quarter in Germany and the UK,
offsetting other underlying improvements. Spain continued to sustain strong
local currency growth in service revenue, primarily through the year on year
increase in the customer base.
Voice revenue
Voice revenue declined by 2.4% on an organic basis compared with the same
quarter last year, having declined 0.9% in the previous quarter. Outgoing voice
revenue remained broadly stable year on year for the region, with the negative
impact in Italy from the cancellation of top up fees, offset by successful
commercial initiatives in Italy and improved trends in Spain and the UK.
Incoming voice revenue continues to decline, with a 3.8% fall principally due to
the impact from termination rate reductions in Germany together with an
additional impact this quarter from termination rate reductions in Spain.
Roaming and international visitor revenues declined 11.9% year on year, as
expected, from the impact of the Group's initiatives on retail and wholesale
roaming.
Messaging revenue
The Europe region recorded 8.5% organic growth in messaging revenue compared
with the same quarter last year, slightly higher than the growth recorded in the
previous quarter. Strong growth in messaging usage and revenue was recorded in
Italy from the continued success of propositions launched in the previous
quarters.
Data revenue
Data revenue growth remained strong, increasing by 28.9% on an organic basis,
similar to the growth in the previous quarter. Data revenue continues to benefit
from growth in business services and the increasing penetration of 3G devices,
which have nearly doubled since June 2006 to 17.1 million. Handheld business
devices increased by 87% since June last year, with Vodafone Mobile Connect data
cards up 70%. Increasing device penetration has improved significantly the rate
of growth in the UK and Italy, offsetting lower but nonetheless strong growth in
Germany and Spain.
Fixed line operator and DSL revenue
Arcor generated 9.9% local currency growth in service revenue compared with the
same quarter last year, driven by a 47% year on year increase in DSL customers
to 2.2 million.
Associates and investments
The Group's interests in France are now managed by the Europe region. SFR
recorded 31,000 proportionate net additions in the quarter, bringing the
proportionate mobile customer base to 7.9 million. Vivendi will report further
financial information for SFR on 25 July 2007.
EMAPA
Quarter ended 30 June
2007 2006 % Change
£m £m £ Organic
Total revenue 2,021 1,436 40.7 18.7
======= =======
Voice revenue 1,638 1,144 43.2 17.0
Messaging revenue 189 142 33.1 15.6
Data revenue 55 25 120.0 64.5
Fixed line operator
and DSL revenue(1) 4 18 (77.8) -
------- -------
Service revenue 1,886 1,329 41.9 18.2
======= =======
Quarter ended 30 June
2007 2006 % Change
Service revenue £m £m £ Organic
Eastern Europe 714 477 49.7 12.9
Middle East, Africa & Asia 837 559 49.7 28.9
Pacific 335 293 14.3 9.5
------- -------
1,886 1,329 41.9 18.2
======= =======
Key performance indicators Eastern Middle
Europe East,
Africa &
Asia Pacific EMAPA
Organic growth % % % %
Closing mobile customers 24.2 39.9 8.9 29.2
Mobile voice usage 25.8 45.9 14.4 32.1
(1) Includes the Group's joint venture interest in the fixed line operations of
Bharti Airtel in the prior year
The EMAPA region recorded 6.9 million organic customer net additions in the
quarter compared with 2.9 million in the same quarter last year, with India and
Turkey accounting for 3.3 million of the year on year increase. Customer growth
remained particularly strong in Egypt and South Africa.
The total customer base reached 96.9 million compared with 53.5 million at June
last year, including a net additional 28.4 million customers in India year on
year.
Reported revenue growth of 40.7% included 27.9 percentage points benefit from
acquisitions and disposals, primarily relating to the timing of the acquisitions
in Turkey and India, offset by 5.9 percentage points adverse impact from
exchange rate movements, particularly in South Africa.
Organic growth in service revenue in the quarter of 18.2% compares with 19.6% in
the previous quarter, primarily reflecting an incremental impact from
termination rate reductions in the quarter across several markets. Customer
growth remains the key driver of the organic increase in service revenue, with
average customers up 27.2% on an organic basis.
Eastern Europe
Organic growth in service revenue of 12.9% in Eastern Europe compared with 16.3%
growth in the previous quarter, with the inclusion of the Czech Republic in the
organic calculation for the first time and an incremental impact from
termination rate reductions accounting for substantially all of the difference.
The principal driver of the organic growth in Eastern Europe continued to be
Romania, where the customer base has reached 8.2 million. Local currency service
revenue growth in Romania was 26.8%, similar to growth in the previous quarter,
with 22.8% growth in average customers and 3.3% growth in ARPU from a focus on
higher value contract customers.
Customer growth in Turkey remains strong with 1.0 million net additions in the
quarter following the rebranding of the business to Vodafone on 31 March 2007,
bringing the closing customer base to 14.9 million, up 32.0% on the same quarter
last year. Year on year total revenue growth for the quarter was 32%, assuming
the Group owned the business for the whole of both quarters.
Middle East, Africa and Asia
Organic service revenue growth in Middle East, Africa and Asia was 28.9%,
similar to growth in the previous quarter, with 37.3% organic growth in average
customers.
Egypt delivered local currency growth in service revenue of 42.8%, compared with
35.9% growth in the previous quarter. Organic customer net additions were 1.0
million, with a positive reaction to the introduction of lifetime validity for
prepaid customers. Average customers have increased by 50.0% compared with the
same quarter last year.
Vodacom Group, the Group's joint venture with principal operations in South
Africa, reported local currency growth in service revenue of 20.6%, slightly
lower than the previous quarter reflecting lower average customer growth as
market penetration rises. The Group's share of net additions was 1.1 million,
bringing the share of the closing customer base to 16.2 million. Data revenue
growth remains very strong at around 70% in local currency, with rapid growth in
mobile broadband connectivity devices.
The Group's new business in India has registered 3.0 million customer net
additions from completion of the acquisition until the end of the quarter,
bringing the closing customer base to 30.8 million, up 75% on June last year.
Year on year total revenue growth for the quarter was 50%, assuming the Group
owned the business for the whole of both quarters.
Pacific
The Pacific area delivered 9.5% organic growth in service revenue, similar to
the previous quarter, with improved underlying trends from a focus on higher
value contract customers in Australia and non-voice services in New Zealand,
offset by an incremental impact from termination rate reductions in the quarter
in both countries.
Associates and investments
Verizon Wireless
In the US, Verizon Wireless maintained strong growth in retail customers, with
1.6 million retail net additions, the same as the previous quarter. Total net
customer additions were 1.3 million, after 0.3 million reseller net
disconnections, with the Group's proportionate share at 0.6 million.
The closing proportionate customer base reached 27.9 million, up 13.2% on June
last year. Verizon Communications will report its June quarter results,
including those of Verizon Wireless, on 30 July 2007.
Other
The Group's investments registered 0.9 million proportionate organic customers
in the quarter.
- ends-
For further information:
Vodafone Group
Investor Relations Media Relations
Tel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444
Notes to editors:
1. Vodafone, the Vodafone logos, Vodafone live!, Vodafone At Home,
Vodafone Office, Vodafone Passport and Vodafone Mobile Connect are
trademarks of the Vodafone Group.
2. References to 'the previous quarter' are to the quarter ended 31 March
2007 unless otherwise stated.
3. Eliminations within the Europe results table represent intercompany
revenue between the segments within the Europe region.
4. The basis of the calculation for organic growth is included on page 159
of the Group's Annual Report for the year ended 31 March 2007.For organic
revenue growth the main adjustments within the EMAPA region are for
the acquisitions of Telsim in Turkey and Vodafone Essar in India, and the
change in status of Vodafone's interest in Bharti Airtel to an investment,
as well as foreign exchange movements. For the Europe region, the principal
adjustments are for foreign exchange movements.
5. The Group's outlook for the year ending 31 March 2008 is contained in
Vodafone's Preliminary Results Announcement for the year ended 31 March
2007.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements which are subject to
risks and uncertainties because they relate to future events. In particular,
such forward-looking statements include statements with respect to Vodafone's
expectations as to expected savings from cost reduction initiatives, including
the IT AD&M programme; expectations as to levels of capital expenditure and
operating expenditure; targeted revenue from the Group's total communications
initiatives; and the Group's expectations for revenue, adjusted operating
profit, capitalised fixed asset additions and free cash flow for the 2008
financial year contained within the outlook statement on page 3 of this
document. Some of the factors which may cause actual results to differ from
these forward-looking statements can be found by referring to the information
under the headings 'Cautionary Statement Regarding Forward-Looking Statements'
and 'Risk Factors' in Vodafone Group Plc's Annual Report for the year ended 31
March 2007. The Annual Report can be found on our website (www.vodafone.com).
KEY PERFORMANCE INDICATORS
MOBILE TELECOMMUNICATIONS BUSINESSES
MOBILE CUSTOMERS(1) - 1 APRIL 2007 TO 30 JUNE 2007
COUNTRY (in thousands) AT 1 APR 2007 NET ADDITIONS OTHER MOVEMENTS(2) AT 30 JUN 2007 PREPAID(3)
Europe:
Germany 30,818 800 - 31,618 54.4%
Italy 21,034 729 - 21,763 91.9%
Spain 14,893 286 - 15,179 44.2%
UK 17,411 236 - 17,647 60.3%
-----------------------------------------------------------------
84,156 2,051 - 86,207 65.3%
-----------------------------------------------------------------
Other Europe:
Albania 956 48 - 1,004 96.3%
Greece 5,057 180 - 5,237 69.7%
Ireland 2,177 10 - 2,187 72.9%
Malta 186 2 - 188 89.5%
Netherlands 3,880 10 - 3,890 44.1%
Portugal 4,751 24 - 4,775 79.3%
-----------------------------------------------------------------
17,007 274 - 17,281 68.8%
-----------------------------------------------------------------
Europe 101,163 2,325 - 103,488 65.8%
-----------------------------------------------------------------
EMAPA:
Eastern Europe:
Czech Republic 2,475 50 - 2,525 47.4%
Romania 7,954 269 - 8,223 65.9%
Hungary 2,163 1 - 2,164 58.9%
Turkey 13,900 1,025 - 14,925 89.1%
Poland 2,483 50 - 2,533 58.8%
-----------------------------------------------------------------
28,975 1,395 - 30,370 70.6%
-----------------------------------------------------------------
Middle East, Africa & Asia:
Egypt 9,652 975 356 10,983 94.5%
Kenya 2,433 332 - 2,765 98.6%
South Africa(4) 15,075 1,129 - 16,204 89.4%
India - 3,049 27,703 30,752 87.9%
-----------------------------------------------------------------
27,160 5,485 28,059 60,704 90.3%
-----------------------------------------------------------------
Pacific:
Australia 3,367 16 - 3,383 72.9%
New Zealand 2,244 24 - 2,268 75.2%
Fiji 139 7 - 146 95.4%
-----------------------------------------------------------------
5,750 47 - 5,797 74.9%
-----------------------------------------------------------------
EMAPA 61,885 6,927 28,059 96,871 83.3%
-----------------------------------------------------------------
Group customers 163,048 9,252 28,059 200,359 75.2%
-----------------------------------------------------------------
Reconciliation to proportionate:
Minority interests in above:
Europe (7) - - (7)
EMAPA (5,897) (1,617) (9,346) (16,860)
-----------------------------------------------------------------
(5,904) (1,617) (9,346) (16,867)
-----------------------------------------------------------------
Associates & investments:
United States 27,322 602 - 27,924 5.3%
Other 21,927 879 (2,185) 20,621 79.0%
-----------------------------------------------------------------
49,249 1,481 (2,185) 48,545
-----------------------------------------------------------------
Proportionate customers(5) 206,393 9,116 16,528 232,037 71.1%
=================================================================
=================================================================
Europe 109,032 2,356 - 111,388 65.8%
EMAPA 97,361 6,760 16,528 120,649 72.1%
=================================================================
Notes:
(1) Group customers are now presented on a controlled (fully consolidated)
and jointly controlled (proportionately consolidated) basis in accordance
with the Group's current segments.
(2) Other movements principally relate to the acquisition of Vodafone Essar.
(3) Prepaid customer percentages are calculated on a venture basis. At 30
June 2007, there were 691.9 million venture customers.
(4) South Africa refers to the Group's interests in Vodacom Group (Pty) Limited
and its subsidiaries, including those located outside of South Africa.
(5) Proportionate customers are based on equity interests as at 30 June 2007.
The calculation of proportionate customers for Vodafone Essar also assumes
the exercise of call options that could increase the Group's equity interest
from 51.95% to 66.98%. These call options can only be exercised in
accordance with Indian law prevailing at the time of exercise.
MOBILE CUSTOMER CHURN
ANNUALISED CHURN INFORMATION IN THE QUARTER ENDED
-------------------------------------------------
COUNTRY 30 JUN 2006 30 SEP 2006 31 DEC 2006 31 MAR 2007 30 JUN 2007
------------------------------------------------------------------------------------------------------
Germany(1) Total 20.7% 22.1% 20.1% 24.2% 20.7%
Contract 14.6% 13.5% 15.7% 14.9% 14.0%
Prepaid 26.0% 29.5% 23.9% 31.9% 26.4%
------------------------------------------------------------------------------------------------------
Italy Total 20.8% 21.7% 19.4% 20.6% 18.1%
Contract 17.2% 13.6% 14.8% 14.1% 15.9%
Prepaid 21.1% 22.4% 19.8% 21.2% 18.3%
------------------------------------------------------------------------------------------------------
Spain (2) Total 20.5% 37.0% 23.4% 24.7% 22.4%
Contract 12.3% 13.4% 15.3% 16.6% 14.8%
Prepaid 28.9% 62.5% 32.8% 34.5% 31.7%
------------------------------------------------------------------------------------------------------
UK Total 32.8% 37.6% 35.4% 29.8% 34.1%
Contract 20.1% 18.8% 17.9% 17.4% 15.9%
Prepaid 40.9% 49.9% 47.0% 37.9% 46.0%
------------------------------------------------------------------------------------------------------
Notes:
(1) The customer churn for Germany in the quarter ended 31 December 2006
benefited from a regulatory driven change in the prepaid disconnection
policy, which reduced disconnections by 291,000 in the quarter. The
underlying prepaid customer churn, excluding this change, was 31.1% and
total churn was 24.0%.
(2) The customer churn for Spain in the quarter ended 30 September 2006
includes the effect of 584,000 disconnections following a change in the
application of disconnection policies. The underlying customer churn,
excluding these disconnections, was 20.1%.
3G DEVICES(1)
QUARTER ENDED 30 JUNE 2007
--------------------------
COUNTRY (in thousands) AT 31 MAR 2007 NET ADDITIONS AT 30 JUN 2007
--------------------------------------------------------------------------------
Germany 3,720 476 4,196
Italy 3,762 330 4,092
Spain 2,890 688 3,578
UK 1,938 685 2,623
Other Europe 2,353 236 2,589
--------------------------------------------------------------------------------
Europe 14,663 2,415 17,078
EMAPA 1,205 227 1,432
--------------------------------------------------------------------------------
Group 15,868 2,642 18,510
--------------------------------------------------------------------------------
Consumer devices 14,246 2,460 16,706
Business devices 1,622 182 1,804
Group 15,868 2,642 18,510
--------------------------------------------------------------------------------
Note:
(1) 3G devices only include those in the Group's subsidiary and joint venture
undertakings. At 30 June 2007, there were an additional 3.3 million (31
March 2007: 3.0 million) registered Vodafone live! with 3G and Vodafone
Mobile Connect 3G/GPRS data card venture customers in the Group's
associated undertakings.
MOBILE VOICE USAGE VOLUMES
TOTAL VOICE MINUTES(1) IN THE QUARTER ENDED
-------------------------------------------
COUNTRY (in millions) 3O JUN 2006 30 SEP 2006 31 DEC 2006 31 MAR 2007 30 JUN 2007
Europe:
Germany 7,614 7,979 8,650 9,230 9,897
Italy 7,687 8,050 8,256 8,439 8,932
Spain 6,978 7,533 7,655 8,248 8,530
UK 7,207 7,579 8,160 8,790 8,963
Albania 148 166 160 167 196
Greece 2,075 2,216 2,113 1,985 2,168
Ireland 1,380 1,422 1,462 1,420 1,490
Malta 49 55 50 48 55
Netherlands 1,820 1,711 1,868 1,900 2,006
Portugal 1,472 1,606 1,586 1,612 1,657
---------------------------------------------------------------
Europe 36,430 38,317 39,960 41,839 43,894
---------------------------------------------------------------
EMAPA:
Eastern Europe:
Czech Republic 901 868 919 916 985
Hungary 948 980 1,030 1,030 1,110
Romania(2) 1,873 2,059 2,231 2,339 2,540
Turkey(3) 2,494 6,451 5,781 6,224 6,583
Joint Venture 575 641 717 681 769
---------------------------------------------------------------
6,791 10,999 10,678 11,190 11,987
---------------------------------------------------------------
Middle East, Africa & Asia:
Egypt 2,869 3,462 3,670 4,156 4,794
India(4) - - - - 26,713
Joint Ventures 5,160 5,713 6,638 5,781 3,016
---------------------------------------------------------------
8,029 9,175 10,308 9,937 34,523
---------------------------------------------------------------
Pacific:
Australia 2,006 2,141 2,238 2,222 2,179
New Zealand 597 597 672 771 793
Joint Venture 28 33 34 32 38
---------------------------------------------------------------
2,631 2,771 2,944 3,025 3,010
---------------------------------------------------------------
EMAPA 17,451 22,945 23,930 24,152 49,520
---------------------------------------------------------------
Group 53,881 61,262 63,890 65,991 93,414
---------------------------------------------------------------
Notes:
(1) The total voice minute information presented in the table above
represents network minutes, or the volume of minutes handled by each local
network, and includes incoming, outgoing and visitor calls. The voice minute
information in respect of Germany, Czech Republic and New Zealand reflects
billed minutes, under which calls are rounded up to the nearest minute under
certain tariffs.
(2) During the quarter ended 31 December 2006, Vodafone Romania restated usage
volumes for all quarters in the prior year. Previous volumes were billed
minutes and this has now been restated to network minutes.
(3) On 24 May 2006, the Group acquired substantially all the assets and
business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. The quarter
ended 30 June 2006 has been restated to include voice minutes from the
acquisition date.
(4) Vodafone Essar is included from the date of acquisition.
MOBILE NON-VOICE SERVICE REVENUE AS A PERCENTAGE OF SERVICE REVENUE(1)
QUARTER ENDED 30 JUNE 2007
--------------------------
COUNTRY MESSAGING DATA TOTAL
----------------------------------------------------------------------------
Germany 14.1% 10.2% 24.3%
Italy 15.7% 5.5% 21.2%
Spain 8.9% 7.2% 16.1%
UK 17.6% 7.3% 24.9%
----------------------------------------------------------------------------
Europe 13.9% 7.2% 21.1%
EMAPA 10.1% 2.9% 13.0%
----------------------------------------------------------------------------
Group 12.9% 6.1% 19.0%
----------------------------------------------------------------------------
HISTORIC MOBILE NON-VOICE SERVICE REVENUE INFORMATION(1)
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE IN THE QUARTER ENDED
--------------------------------------------------------------------------
COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN
2006 2006 2006 2007 2007
------------------------------------------------------------------------------------
Germany 21.2% 21.6% 22.9% 24.4% 24.3%
Italy 17.3% 17.5% 18.7% 20.4% 21.2%
Spain 15.7% 14.7% 15.3% 16.0% 16.1%
UK 20.9% 21.7% 23.2% 24.3% 24.9%
------------------------------------------------------------------------------------
Europe 18.5% 18.6% 19.9% 21.0% 21.1%
EMAPA 12.7% 14.5% 15.2% 12.0% 13.0%
------------------------------------------------------------------------------------
Group 17.4% 17.8% 18.9% 18.9% 19.0%
------------------------------------------------------------------------------------
Note:
(1) Service revenue from the mobile telecommunications businesses excludes
fixed line operators and DSL revenue.
AVERAGE MONTHLY MOBILE REVENUE PER USER IN THE QUARTER
------------------------------------------------------------------------------
COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN
2006 2006 2006 2007 2007
------------------------------------------------------------------------------
Europe:
Germany Total 22.1 22.4 20.9 19.3 19.5
(EUR) Contract 38.4 39.0 36.7 34.7 34.9
Prepaid 7.6 7.6 7.0 6.1 6.2
------------------------------------------------------------------------------
Italy Total 27.6 27.1 25.8 23.4 23.2
(EUR) Contract 72.6 68.0 71.1 69.5 69.8
Prepaid 23.3 23.2 21.5 19.1 18.8
------------------------------------------------------------------------------
Spain Total 35.3 36.4 35.3 33.8 36.3
(EUR) Contract 54.8 55.2 51.3 48.9 52.0
Prepaid 15.0 15.4 16.0 15.0 16.4
------------------------------------------------------------------------------
UK Total 23.7 24.5 23.6 22.7 23.1
(GBP) Contract 45.2 46.5 43.7 43.4 43.5
Prepaid 8.9 9.4 9.5 8.6 8.9
------------------------------------------------------------------------------
Albania Total 2,122 2,311 2,086 1,868 1,844
(ALL) Contract 17,240 17,941 16,329 14,612 14,403
Prepaid 1,606 1,782 1,605 1,419 1,366
------------------------------------------------------------------------------
Greece Total 31.1 31.0 27.6 24.7 25.5
(EUR) Contract 65.6 66.8 61.6 56.5 60.0
Prepaid 13.7 13.4 11.4 10.1 10.2
------------------------------------------------------------------------------
Ireland Total 48.8 46.9 45.6 44.6 45.4
(EUR) Contract 102.8 99.4 94.5 92.5 94.3
Prepaid 29.3 28.0 27.9 27.2 27.1
------------------------------------------------------------------------------
Malta(1) Total 14.7 16.6 12.6 12.0 14.0
(MTL) Contract 39.2 38.2 36.0 34.7 36.3
Prepaid 11.2 13.4 9.2 8.5 10.5
------------------------------------------------------------------------------
Netherlands Total 35.7 36.9 31.7 36.1 37.9
(EUR) Contract 63.5 64.6 52.0 57.8 59.7
Prepaid 10.1 10.4 9.8 9.8 10.6
------------------------------------------------------------------------------
Portugal Total 23.5 24.4 22.8 22.1 22.4
(EUR) Contract 62.2 62.8 57.8 54.2 54.9
Prepaid 13.0 13.9 13.2 13.2 13.2
------------------------------------------------------------------------------
------------------------------------------------------------------------------
EMAPA Subsidiaries:
------------------------------------------------------------------------------
Australia Total 49.4 52.4 54.0 51.3 50.5
(AUD) Contract 92.7 96.4 98.8 97.1 96.2
Prepaid 33.9 36.2 37.2 34.1 33.0
------------------------------------------------------------------------------
Czech Republic Total 674 670 658 613 635
(CZK) Contract 978 966 946 897 916
Prepaid 331 334 331 295 320
------------------------------------------------------------------------------
Egypt Total 79.4 88.1 79.4 75.0 75.6
(EGP) Contract 292.1 309.7 289.9 295.8 308.8
Prepaid 57.1 66.7 61.4 59.1 60.4
------------------------------------------------------------------------------
Hungary Total 5,066 5,339 5,171 4,749 4,935
(HUF) Contract 9,129 9,097 8,529 7,847 8,010
Prepaid 3,125 3,359 3,250 2,839 2,873
------------------------------------------------------------------------------
India Total N/A N/A N/A N/A N/A
(INR) Contract N/A N/A N/A N/A N/A
Prepaid N/A N/A N/A N/A N/A
------------------------------------------------------------------------------
New Zealand Total 46.6 46.6 50.7 49.3 47.1
(NZD) Contract 126.1 125.3 128.9 122.8 117.2
Prepaid 23.2 22.5 23.7 23.4 21.4
------------------------------------------------------------------------------
Turkey Total N/A 16.5 14.4 14.4 15.7
(TRY) Contract N/A 31.4 28.2 28.7 29.2
Prepaid N/A 14.8 12.9 12.9 14.1
------------------------------------------------------------------------------
Romania Total 15.2 15.9 15.6 14.0 15.7
(USD) Contract 29.5 30.8 30.6 27.1 31.2
Prepaid 6.7 7.3 7.0 6.1 6.6
------------------------------------------------------------------------------
Notes:
(1) During the quarter ended 30 June 2007, Vodafone Malta restated previously
published prepaid and contract average monthly mobile revenue per user to
reflect a revised analysis of historic service revenue.
(2) For acquired operations, average monthly mobile revenue per user is
published with effect from the quarter following each acquisition.
This information is provided by RNS
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