Interim Results - Part 1

Vodafone Group Plc
12 November 2002


VODAFONE GROUP PLC

INTERIM RESULTS FOR THE
SIX MONTHS TO 30 SEPTEMBER 2002

PART 1


                                                       Embargo:
VODAFONE GROUP PLC                                     Not for
                                                       publication
INTERIM RESULTS FOR THE                                before 07:00
SIX MONTHS TO 30 SEPTEMBER 2002                        hours
                                                       12 November
                                                       2002

Excellent first half operating performance

Expectations exceeded on key growth indicators

#2.9 billion free cash flow generated

* Turnover increased 67% to #14,898 million, benefiting from
the   inclusion   of  results  from  the  Group's   Japanese
operations, with data revenues increasing by 112% to  #1,701
million.   Proportionate turnover increased 15%  to  #16,517
million.

*  Increase of over 12% in proportionate registered customer
base since 30 September 2001 to 107.5 million.

*  Profit  on  ordinary activities before  taxation,  before
goodwill  amortisation of #6,837 million and net exceptional
non-operating income of #267 million, increased  by  41%  to
#4,250 million.

*  Earnings per ordinary share, before goodwill amortisation
and exceptional items, increased by 31% to 3.28 pence.

* Loss for the financial period improved by #5,399 million to
#4,336 million.

* Dividend increase doubled to 10%.

* Group EBITDA, before exceptional items, increased by 68% to
#5,566  million.   Proportionate EBITDA, before  exceptional
items, increased by 30% to #6,203 million.

*  Free  cash flow of #2,878 million, after investing #2,705
million on tangible capital expenditure. Net debt reduced to
#10,697 million.


Sir Christopher Gent, Chief Executive of Vodafone Group Plc,
commented:

'The results show Vodafone has exceeded market expectations on
key   growth  indicators  with  good  turnover  growth   and
excellent  improvements in margins leading  to  very  strong
free cash flow generation.  We are making the transition  to
the new growth environment enabled by our new data services,
with  a  better  financial performance  than  expected.   We
expect   to  achieve  good  year  on  year  growth  on   key
performance parameters and are very confident in the  future
prospects for our business.'

Julian Horn-Smith, Group Chief Operating Officer, commented:

'We have delivered an excellent first half operating performance
reflecting  the fundamental strength of the  business.   The
improvements in ARPU, margins and cash flows demonstrate our
focus on growing a high quality customer base, promoting new
and  existing  services  and driving operational  efficiency
throughout   the  Group.   Our  new  customer  propositions,
together with our strong brand, create a compelling platform
on which to achieve our future growth objectives.'


GROUP FINANCIAL HIGHLIGHTS
Statutory                                 Six months to
                                           30 September
                                        2002         2001   Increase
                                          #m           #m          %

Turnover                              14,898        8,906         67

Group EBITDA (notes 1 and 2)           5,566        3,318         68

Total Group operating
profit/(loss)
- before goodwill amortisation
and                                    4,640        3,392         37
  exceptional items
- after goodwill amortisation and
  exceptional items (note 3)         (2,197)      (7,820)          -

Profit/(loss) on ordinary
  Activities before taxation
- before goodwill amortisation
    and exceptional items              4,250        3,011         41
- after goodwill amortisation and
  exceptional items (note 3)         (2,320)      (8,449)          -

Profit/(loss) for the financial
period
- before goodwill amortisation
    and exceptional items              2,234        1,702         31
- after goodwill amortisation and
  exceptional items (note 3)         (4,336)      (9,735)          -


Proportionate (note 4)                             Proportionate EBITDA
                           Proportionate turnover     (Notes 1 and 2)
                              Six months to 30       Six months to 30
                                 September               September
                             2002    2001    Inc/    2002   2001     Inc
                                            (dec)
Mobile telecommunications      #m      #m       %      #m     #m       %
Northern Europe             3,565   3,133      14   1,379  1,028      34
Central Europe              2,585   2,343      10   1,174  1,026      14
Southern Europe             3,009   2,408      25   1,313  1,049      25
Americas                    2,907   2,839       2   1,010  1,000       1
Asia Pacific                3,155   2,517      25   1,042    567      84
Middle East and Africa        238     252     (6)     109    108       1
                            -----   -----           -----  -----
                           15,459  13,492      15   6,027  4,778      26
Other operations
Europe                        380     381       -     (2)   (32)       -
Asia Pacific                  678     453      50     178     31     474
                            -----   -----           -----  -----
                           16,517  14,326      15   6,203  4,777      30
                            =====   =====           =====  =====
Organic growth at
  constant exchange rates                       8                     24

Per share information                      Six months to
                                           30 September
                                          2002         2001   Increase
                                                                     %
Basic earnings/(loss) per share
- before goodwill amortisation and
  exceptional items                      3.28p        2.51p         31
- after goodwill amortisation and
  exceptional items (note 3)           (6.36)p     (14.36)p          -

Dividend per share                     0.7946p      0.7224p         10

Operating cash flow per share            8.33p        5.37p         55

Notes

1.   Before exceptional items.
2.   Group EBITDA and proportionate EBITDA are not recognised
measures under UK GAAP.  Further details are given in  Notes
7 and 10, respectively.
3.    Goodwill amortisation charge of #6,837m, compared with
#6,697m  for  the  six  months  ended  30  September   2001.
Exceptional  items  for  the  current  period  comprise  net
exceptional  non-operating income of  #267m.   For  the  six
months  ended  30 September 2001, exceptional operating  and
non-operating   charges   totalled   #4,515m   and    #248m,
respectively. Further details are given in Notes 3 and 4.
4.    Proportionate information is calculated on  the  basis
described in Note 1 - Basis of preparation - below.



GROUP OPERATING HIGHLIGHTS

Operational performance

* Real improvement in ARPU in some of our key markets, driven
by  increased voice and data usage and improved customer mix
and  activity levels.  Active customers represent 94% of the
total registered proportionate customer base, compared  with
92% at 31 March 2002 and 90% at 30 September 2001.

*  Non-voice  service revenues up in the Group's  controlled
mobile businesses to 13.2% of total service revenues for the
twelve  month  period  to 30 September 2002,  compared  with
11.1%  for  the  year ended 31 March 2002.  In  Japan,  data
revenues exceeded 20% of service revenues during August  and
September.

*  The  Group's mobile business proportionate EBITDA  margin
improved  by 3.6 percentage points to 39.0%.  Mobile  EBITDA
margin in Japan increased from 20.5% to 32.0%.

*  Organic net customer additions of over 9.4 million in the
twelve  month  period  ended 30 September  2002.   Worldwide
customer  base  of  107.5  million proportionate  registered
customers at 30 September 2002, representing growth of 12.5%
since  30 September 2001.  Venture registered customer  base
over 273 million.

*  Free  cash flow of #2,878 million, exceeding  the  amount
generated  for  the  whole of the previous  financial  year.
Operating cash flow increased 56% over the comparable period
to #5,676 million.

* Tangible capital expenditure of #2,705 million.  The Group
expects  this number to increase to over #5,500 million  for
the full year, 8% below previous forecast of #6,000 million.

Commercial initiatives

*  European  launch  of Vodafone live!, Vodafone's  consumer
service,  which  provides colour mobile services  through  a
Vodafone-branded  easy  to use menu  on  integrated  camera-
phones.    Vodafone   customers  can  now   access   picture
messaging,  downloadable games and  ringtones  and  all  the
latest entertainment and information.

*  Imminent  launch  of  the first product  from  Vodafone's
business   proposition,  Vodafone  Mobile   Office,   called
'Vodafone  Remote Access', which will offer  a  pan-European
Vodafone-branded  solution for secure remote  connection  of
laptops to a corporate network using a Vodafone-enabled GPRS
data card and customised software.

* Launch of new services, including prepaid top-ups, allowing
customers  to  top-up  their  prepaid  mobile  phones   when
travelling  abroad and Eurocall Platinum,  building  on  the
success  of  Vodafone's  single rate  European  price  plan,
Eurocall.  Eurocall Platinum is aimed at high-usage business
travellers  in  Europe.   Launch of  GPRS  roaming  enabling
seamless access to Vodafone live! and Vodafone Remote Access
across Vodafone and Vodafone's partner networks.

* Success of brand rollout programme and advertising campaigns
has  created  increased  brand  recognition  and  awareness,
supporting   the   rollout  of  Vodafone-branded   services,
increasing  usage and customer loyalty and attracting  other
mobile operators through the Partner Network programme.

Transactions

*  Agreement  reached  with BT and  SBC  to  purchase  their
respective   26%   and   15%   interests   in   the   French
telecommunications   operator   Cegetel,   the   controlling
shareholder  of  the  French mobile  operator  SFR,  for  an
aggregate  cash  consideration of  Eur  6.3  billion.   Both
acquisitions  are  subject  to pre-emption  rights  held  by
Vivendi.  Non-binding cash offer of Eur 6.8 billion made  to
Vivendi  for  its  44% interest in Cegetel rejected  by  the
Board  of  Vivendi  on  29  October  2002,  with  the  offer
subsequently  lapsing.  Same offer renewed to last  for  the
duration of the twenty-day pre-emption period ending  on  10
December  2002.   Until such time as the offer  is  formally
accepted  by  Vivendi,  the  Group  reserves  the  right  to
withdraw its offer at any time.

*  Acquisition of additional minority stakes in the  Group's
subsidiaries   in  Germany,  Spain,  Sweden,  Portugal   and
Australia, for a total cash consideration of #899 million.

*  Further  investment of USD 750 million in  China  Mobile,
increasing interest to approximately 3.27%.

*  Acquisition of remaining 50% stake in Vizzavi for Eur 143
million.

*  Disposal of remaining stake in Arcor's Telematik business
and stake in Bergemann GmbH, through which the Group held an
effective 8.2% stake in Ruhrgas AG, realising cash  proceeds
of approximately Eur 1 billion.


BUSINESS REVIEW

The Group has continued to perform strongly in the period as it
has  continued  to  focus  on  revenue  growth  and  margin
improvement.    The  emphasis  has  been   on   attracting,
servicing  and  retaining  high  value  customers  and  the
provision of new products and services.

Statutory turnover

The Group's statutory turnover increased by #5,992m to #14,898m
for the six months ended 30 September 2002 from #8,906m for
the six months ended 30 September 2001.  Growth in turnover
from  existing  operations  was  #1,244m,  representing  an
increase   of  14%,  and  growth  in  respect  of  acquired
businesses   was   #4,748m,  comprising  J-Phone   Vodafone
(#3,731m) and Japan Telecom (#1,017m), both of which became
subsidiaries and therefore were consolidated in the  second
half of the 2002 financial year.

Turnover increased as a result of the increased average customer
base and improved levels of usage, although this was partly
offset  by reductions in call termination rates in  certain
of  the  Group's  markets. Compared with the  twelve  month
period  ended  31  March 2002, ARPU for the  twelve  months
ended 30 September 2002 improved in Germany and the UK as a
result  of  a  combination of these factors  together  with
increased  levels of customer base activity resulting  from
expected  disconnections from the  customer  base.   Mobile
data   revenues  also  increased  and  made  a  significant
contribution   to   overall  turnover   growth   and   ARPU
improvements and, at #1,701m, data accounted for  13.2%  of
service   revenues   in  the  Group's   controlled   mobile
subsidiaries for the twelve months ended 30 September 2002,
compared  with  11.1%  for the 2002  financial  year.   SMS
revenues  continue to represent the principal component  of
data  revenues and the increase reflects both increases  in
usage per customer and penetration of the service into  the
customer base.  In addition, Japan has continued to develop
its data and content service offerings, contributing to  an
increase  in data revenues which, for the last two  months,
represented  over 20% of service revenues.   The  Group  is
expecting  to  further  grow  non-voice  service   revenues
through  its  Vodafone  live! and  Vodafone  Mobile  Office
service offerings, which are described in more detail under
'Strategic Developments, Products and Services', below.

Expenses

Consolidated cost of sales increased from #4,916m for the six
months   ended  30  September  2001  to  #8,574m  and   now
represents 58% of turnover, compared with 55% for  the  six
months  ended  30  September 2001.  The  Group's  equipment
costs and cost of providing financial incentives to service
providers and dealers for acquiring and retaining customers
reduced  to 12.4% compared with 14.6% of turnover  for  the
comparative six-month period.  This excludes the effects of
the first time inclusion of J-Phone Vodafone where costs to
connect  and  retain  customers,  although  reducing,   are
significantly  higher  than in the Group's  other  markets.
This  decrease reflects the continued focus on gaining  and
retaining  high-value customers in the most  cost-efficient
manner.    Inclusive of J-Phone Vodafone,  equipment  costs
and financial incentives amounted to 19.0% of turnover.

Sales and administration costs, excluding goodwill amortisation
and  exceptional items, increased from #1,744m to  #2,720m,
the  increase  being attributable almost  entirely  to  the
first time inclusion of J-Phone Vodafone and Japan Telecom.
These  costs  represented 18.3% of  turnover  for  the  six
months ended 30 September 2002 compared with 19.6% for  the
comparable  six  months, demonstrating the Group's  ongoing
focus on cost control and the realisation of synergies.

Depreciation increased by #839m to #1,892m, primarily as a result
of the consolidation of the results of J-Phone Vodafone and
Japan  Telecom.  Excluding the effects of J-Phone  Vodafone
and   Japan   Telecom,  the  Group's  depreciation   charge
increased 12% over the comparable period.

Operating results

The  total  Group operating profit for the  period,  before
exceptional  items and goodwill amortisation, increased  by
37% from #3,392m to #4,640m, including an increase of #620m
in  respect  of  J-Phone Vodafone and Japan Telecom,  which
both became subsidiaries of the Group in October 2001.

After goodwill amortisation and exceptional items, the total Group
operating loss improved from a loss of #7,820m in  the  six
months ended 30 September 2001 to a loss of #2,197m for the
six  months  ended  30  September  2002  as  the  increased
goodwill amortisation charge of #140m was more than  offset
by  a #4,515m reduction in exceptional operating items  and
the #1,248m improvement in operating profit.

Proportionate results

Proportionate turnover increased 15% to #16,517m as a result of
strong organic growth together with the effect of increased
stakes  in  certain  of  the Group's  existing  businesses,
principally  Japan Telecom and J-Phone  Vodafone.   In  the
mobile businesses, proportionate turnover also grew by  15%
to  #15,459m,  including  10%  organic  growth  in  service
revenues.

The Group's proportionate EBITDA margin in the mobile businesses
increased from 35.4% in the comparable period to  39.0%  in
the  six  months  ended 30 September  2002,  with  all  the
Group's  main  markets reporting increased EBITDA  margins.
Greater  control  over customer acquisition  and  retention
costs  accounted  for  1.5  of  the  3.6  percentage  point
increase  in  the Group's mobile EBITDA margin  during  the
period,  with  the  remainder  of  the  margin  improvement
arising  from  ongoing cost control and the realisation  of
synergies.   In Japan, proportionate mobile EBITDA  margins
have  been  improved from 20.5% to 32.0%, as  a  result  of
lower  customer  acquisition and retention  costs  and  the
continuing  benefits  generated  through  the   merger   of
regional operating companies into a single structure.  This
increase  was also achieved against a backdrop of continued
strong  demand  for camera-enabled handsets  and  increased
competition.

A regional review of the Group's principal business, the supply of
mobile   telecommunications  services  and   products,   is
presented below.  A review of the Group's other operations,
which  primarily  comprise  fixed  line  telecommunications
businesses,  an  update on progress made with  the  Group's
data  products and services initiatives, including Vodafone
live!  and  Vodafone Mobile Office, further information  on
the  Group's  financial performance and a  summary  of  the
outlook  for  the financial years ended 31 March  2003  and
2004  can be found below.  The appendices to these  results
also   contain  information  on  certain  key   performance
indicators  for  the  quarter  and  six  months  ended   30
September   2002,  including  details  of  the   registered
customer base, ARPU and non-voice service revenue data.

Mobile Telecommunications

The Group's mobile businesses were the principal drivers of growth
in  the  period  and  continue to demonstrate  the  Group's
operational  strength, with turnover and operating  profit,
before   goodwill   amortisation  and  exceptional   items,
increasing  by  59%  and  30%  to  #13,440m  and   #4,675m,
respectively.  The Group continued to expand  its  customer
base  in the period, adding a further 6.4 million customers
to  its  proportionate  registered  customer  base.  At  30
September  2002  the Group had 107.5 million  proportionate
registered  customers  and a total venture  base  of  273.2
million,  compared  with 101.1 million and  229.2  million,
respectively, at 31 March 2002.

Northern Europe

Financial highlights                            Six months to
                                                 30 September
                                                2002     2001    Increase
                                                  #m       #m          %

Statutory turnover       - United Kingdom      2,000    1,805          11
                         - Other Northern
                           Europe                981      777          26
                                              ------   ------
                                               2,981    2,582          15
                                              ------   ------

Statutory total Group    - United Kingdom        541      394          37
operating profit         - Other Northern
(note 1)                   Europe                535      355          51
                                              ------   ------
                                               1,076      749          44
                                              ------   ------

Proportionate turnover   - United Kingdom      2,000    1,805          11
                         - Other Northern
                           Europe              1,565    1,328          18
                                              ------   ------
                                               3,565    3,133          14
                                              ------   ------

Proportionate EBITDA     - United Kingdom        739      565          31
(before exceptional      - Other Northern
items)                     Europe                640      463          38
                                              ------   ------
                                               1,379    1,028          34
                                              ------   ------

Proportionate EBITDA     - United Kingdom      37.0%    31.3%
margin                   - Other Northern
                           Europe              40.9%    34.9%

Key performance indicators
(United Kingdom only)

ARPU (note 2)                                   #282     #276

Churn (note 2)                                 29.7%    27.0%

Cost to connect                                  #63      #78

(1) before goodwill amortisation and exceptional items

(2) ARPU and churn information represents the twelve month periods
ended 30 September 2002 and 31 March 2002, respectively

United Kingdom

Vodafone UK reported strong profit growth as it continued to
realise benefits from the acquisition and retention of high
value   customers  and  the  continuing   focus   on   cost
efficiencies.  This is reflected in a 37% increase in total
Group  operating  profit, before goodwill  and  exceptional
items,  achieved on an 11% increase in statutory  turnover.
Operating efficiency initiatives, including the benefits of
last  year's restructuring, have contributed strongly to  a
5.7 percentage point increase in EBITDA margin.

The trend of declining ARPU in the market place was reversed with
blended  ARPU  for the twelve months to 30  September  2002
increasing  to #282 compared to #276 for the twelve  months
ended  31  March  2002. Improved customer  activity  levels
contributed   to   this  increase  with  active   customers
increasing from 89% of the base at 31 March 2002 to 93%  at
30  September  2002.  In addition, Vodafone UK's  share  of
outgoing mobile service revenue in Oftel's quarterly review
stands  at  33.9%,  representing a lead of  6.7%  over  the
second placed UK network.

In the twelve months ended 30 September 2002, data revenue as a
percentage  of  service  revenue  has  increased  to  13.2%
compared to 11.8% for the year ended 31 March 2002 and 8.9%
for  the  twelve months ended 30 September  2001.  This  is
primarily due to continued increases in SMS penetration and
usage  in  both the contract and prepaid base, as customers
take  advantage of the full range of products and  services
available.

Contract ARPU has fallen from #555 to #536 due to the continued
migration  of higher value prepaid customers onto  contract
tariffs.  Notwithstanding this migration, Vodafone  UK  has
seen an increase in prepaid ARPU to #121 as opposed to #118
for  the  twelve  months  to  31  March  2002  as  inactive
customers were disconnected.

As at 30 September 2002, Vodafone UK had 12,957,000 registered
customers,  of whom 5,264,000 were contract customers.  The
contract  base  now makes up 41% of the total  base,  which
represents an improvement of three percentage points  since
31  March  2002.  Vodafone UK's contract base  now  exceeds
that of its nearest competitor by 26%.  The period saw  the
proportion of active prepaid customers increase from 84% of
the  prepaid  base at 31 March 2002 to 90% at 30  September
2002.

Blended churn for the twelve months to 30 September 2002 increased
when  compared to the twelve months to 31 March 2002  as  a
result  of increased disconnections of the inactive prepaid
base.   Contract churn has fallen from 26.1% to  23.5%  for
the  twelve  months  to 30 September 2002,  whilst  prepaid
churn has risen to 33.5%.

Whilst continuing to invest in the connection of higher value
customers,  the  UK business maintained a  stable  contract
cost  to  connect of #121, compared with #119 for  the  six
months  ended  30  September 2001.   The  average  cost  to
connect  for  prepaid  customers  fell  from  #32  to  #10,
improving the profitability of this market segment further.

Other Northern Europe

The Group successfully completed the rollout of its rebranding
programme across its other interests within Northern Europe
as  Europolitan  Vodafone migrated to the  single  Vodafone
brand  in April 2002. Vodafone brand awareness was  further
strengthened across the region with the launch of the  'How
are you?' campaigns in The Netherlands, Sweden and Ireland.

The Group's other interests within Northern Europe reported strong
financial performance.  Statutory turnover increased by 26%
over the period partly as a result of the enlarged customer
base  and increased voice and data revenues. Voice revenues
increased  in  all Other Northern Europe  markets,  with  a
particularly   strong   increase   reported   in   Vodafone
Netherlands,  where  blended ARPU increased  by  7%.   Data
revenues  also  grew  across the region including  Vodafone
Ireland  where data and SMS revenues for the twelve  months
ended  30  September 2002 represented 17% of total  service
revenues.

The proportionate registered customer base increased by 264,000 to
10,084,000 and was driven by continued growth by SFR in the
relatively  under-penetrated French  market  and  increased
consumer  sales in Sweden, including the successful  launch
of  its  new  Vodafone-branded  prepaid  product.  Vodafone
Ireland  also  consolidated its  position  as  the  largest
mobile operator in Ireland with a 57% market share.

In July 2002, Vodafone Ireland was awarded one of four twenty-year
UMTS licences for a total cost of Eur 114m.

Central Europe

Financial highlights                            Six months to
                                                 30 September
                                                2002     2001    Increase
                                                  #m       #m          %

Statutory turnover       - Germany             2,251    2,067           9
                         - Other Central
                           Europe                 57       23         148
                                              ------   ------
                                               2,308    2,090          10
                                              ------   ------

Statutory total Group    - Germany               775      707          10
operating profit (note   - Other Central
1)                         Europe                 97       75          29
                                              ------   ------
                                                 872      782          12
                                              ------   ------

Proportionate turnover   - Germany             2,246    2,057           9
                         - Other Central
                           Europe                339      286          19
                                              ------   ------
                                               2,585    2,343          10
                                              ------   ------

Proportionate EBITDA     - Germany             1,038      931          11
(before exceptional      - Other Central
items)                     Europe                136       95          43
                                              ------   ------
                                               1,174    1,026          14
                                              ------   ------

Proportionate EBITDA     - Germany             46.2%    45.3%
margin                   - Other Central
                           Europe              40.1%    33.2%

Key performance
indicators
(Germany only)

ARPU (note 2)                                Eur 308  Eur 298

Churn (note 2)                                 25.6%    23.5%

Cost to connect                               Eur 73  Eur 110

(1)   before goodwill amortisation and exceptional items

(2)   ARPU and churn information represents the twelve month periods
ended 30 September 2002 and 31 March 2002, respectively


Germany

The robust operating results for Vodafone Germany, which were
achieved   against   a   backdrop  of  difficult   economic
conditions, reflect the benefits arising from its  customer
base  management  programme, which has seen  the  continued
removal,  during  the  first quarter, of  inactive  prepaid
customers  from  the  customer base,  an  increase  in  the
contract base and the launch of further innovative products
and services.

Statutory turnover increased as a result of higher levels of voice
usage  and improved data and messaging revenues, which  now
represent  15.4%  of service revenues, with  data  revenues
benefiting  from continued strong SMS usage  and  increased
mobile   internet  activity.   The  launch  of   Multimedia
Messaging  Services, 'MMS', in April 2002, the  first  such
launch  in Germany, and other services such as premium  SMS
and  GPRS  roaming  also contributed to the  improved  data
revenue  performance. Equipment revenues were  lower  as  a
result of increased levels of SIM-only connections.

The downward trend in customer numbers was reversed in the period,
despite the continued removal of inactive prepaid customers
from  the  customer base, as Vodafone Germany was  able  to
increase  the  number of contract customers in  the  twelve
month period to 30 September 2002, increasing the share  of
contract  customers in its base from 40%  at  30  September
2001   to   45%.    Vodafone  Germany  introduced   further
initiatives  aimed at improving the customer mix  including
the  launch  of  a  customer loyalty  programme,  'Vodafone
Stars',  and  the signing of a co-operation agreement  with
Lufthansa,  to  strengthen  customer  loyalty  within   the
business segment and to better address the requirements  of
high   value  roaming  customers.   As  a  result,  Germany
increased  the  proportion of its  customer  base  that  is
active to 92% at 30 September 2002, compared with 91% at 31
March 2002.

The improved mix in the customer base has contributed to the
improved  blended ARPU performance, with prepaid  ARPU  for
the  twelve months to 30 September 2002 increasing  to  Eur
121  from  Eur 110 for the twelve months to 31 March  2002.
Contract ARPU reduced to Eur 542, compared with Eur 559 for
the  twelve months to 31 March 2002.   The increase in  the
blended  churn rate can be attributed to a slightly reduced
contract  churn rate, which decreased from 18.3% to  16.3%,
offset by the prepaid churn rate which increased from 27.1%
to  32.5%  as a result of the removal of inactive customers
from the prepaid customer base.

Operating profit benefited from improved equipment margins as a
result  of  lower handset subsidies, with prepaid  cost  to
connect  reducing to Eur 19 and contract  cost  to  connect
reducing to Eur 129, benefiting from an increased share  of
SIM-only  connections.  Further  increases  in  the  EBITDA
margin  were  also made as a result of improved operational
efficiency.

Other Central Europe

The  Group's other interests within Central Europe reported
improved  financial performance, reflecting both  continued
growth  in  the  mobile  markets represented  and  improved
operational efficiency.

In the six month period from 31 March 2002, the proportionate
registered  customer base increased by 14%,  with  Vodafone
Hungary  increasing its customer base by 27%.   In  Poland,
penetration  levels improved from 28% to over  32%  in  the
period, with Polkomtel increasing its customer base by 13%.
The  Polish market was particularly competitive during  the
period  as  the third largest operator chased market  share
ahead of customer profitability.  However, Polkomtel's ARPU
remains the highest in Poland.

Voice and data revenues in Hungary grew significantly over the
comparable  period  as a result of a 27%  increase  in  its
customer  base  and were also boosted by  improved  roaming
revenues and the launch of prepaid roaming top-ups.

The increase in proportionate turnover includes the effect of an
18.2%  stake increase in Vodafone Hungary and a 7% increase
in turnover in Polkomtel. Voice and data revenues increased
in  Swisscom Mobile although the increase was partly offset
by  a  decline  in  national roaming turnover  and  reduced
revenue from handset sales.

EBITDA margins improved in all of the businesses within Other
Central Europe.




                      This information is provided by RNS
            The company news service from the London Stock Exchange