Key Performance Indicators

Vodafone Group PLC 29 January 2002 29 January 2002 QUARTERLY KPIs SHOW OVER 4.2M NEW CUSTOMERS; CONTINUED ARPU STABILISATION AND UPWARD TREND IN DATA Vodafone Group Plc ('Vodafone') today announces key performance indicators for the three month period to 31 December 2001. The main highlights are: • Strong customer growth with over 4.2m proportionate net new customer additions, resulting in 99.9m proportionate customers and over 222m venture customers • Registered blended average revenue per user ('ARPU') remains stable in major markets with a less than expected seasonal effect • Data revenue rose to over 12% of service revenues for the Group's controlled operations in December and over 10% in the year to date • Exceptional net customer growth in Italy achieved with 12 month rolling ARPU unchanged • Good quality of customer growth in the UK and strong growth in data revenues increasing to almost 13% in December and more than 10% for the year to date • Strong contract customer growth in Germany with expected levels of prepaid churn • Continued focus on value customers Sir Christopher Gent, Chief Executive of Vodafone, commented: 'This quarter, we have both continued to improve the mix of our customer base and achieved a better than anticipated level of customer growth. Adjusting for the seasonal effect, ARPU continues to stabilise and data in our controlled properties is now contributing double-digit percentage levels to service revenues. 'In the year ahead, we expect some improvement in ARPU, as activity levels increase following the heavy period of customer growth in the last year, and as further voice and data services are introduced in our markets.' Customer Growth Overall, more than 4.2 million registered proportionate new customers were added in the quarter, 3.1 million organically with just over 1 million through stake increases, primarily in J-Phone Vodafone in Japan. The quality of growth in the quarter continued to improve the overall customer mix as more higher value contract customers were added to the base. Activity levels, which were similar to the previous quarter, are expected to improve as the long term churn policies typical in countries such as Germany and Italy start to take effect. Registered Blended ARPU Registered blended ARPU continues to stabilise, allowing for the normal seasonal impact with a lower number of working days, in countries with a larger percentage of corporate customers. The good ARPU performance in Italy in the Christmas quarter reflects the higher percentage of consumer customers in the base. Data as a Percentage of Service Revenues Data as a percentage of revenues continues to grow on a like-for-like basis with the Group's controlled operations recording over 10% in the year to December and over 12% in the month of December. Strong improvements were recorded in the UK and also in Italy where data revenues benefited from a successful Christmas messaging campaign. - ends - For further information: Vodafone Group Plc Tim Brown, Group Corporate Affairs Director Melissa Stimpson, Head of Group Investor Relations Bobby Leach, Head of Group Financial Media Relations Jon Earl, Senior Investor Relations Manager Darren Jones, Senior Investor Relations Manager Tel: +44 (0) 1635 673310 Tavistock Communications Lulu Bridges / John West Tel: +44 (0) 20 7600 2288 Important Information Concerning Certain Statements in this Press Release. This press release contains forward-looking statements concerning the future revenues of Vodafone and some of our plans and objectives with respect to these items. By their nature, forward-looking statements are inherently predictive and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future, many of which are beyond our control. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in economic conditions in markets served by the operations of Vodafone and its subsidiaries (together, the 'Vodafone Group') and other changes that would adversely affect the level of demand for mobile telephone services, greater than anticipated costs associated with developing such networks and/or providing such services, delays, impediments or other problems associated with the roll-out and scope of GPRS and/or 3G technology, networks and services, the obsolescence of existing technology, the possibility that technologies will not perform according to expectations or that vendors' performances will not meet Vodafone's requirements, including the delivery and performance of GPRS handsets and other key products from our suppliers, the ability of the Vodafone Group to develop competitive data content and services, the ability to enter into strategic partnerships with suppliers and the ability to realise benefits from entering into any such partnerships, changes in the regulatory framework in which the Vodafone Group operates, including regulatory actions in connection with pending or future acquisitions. All subsequent written or oral forward-looking statements attributable to Vodafone or any of its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Vodafone undertakes no obligation to, and does not intend to, update these forward-looking statements. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES QUARTERLY PROPORTIONATE NET CUSTOMER ADDITIONS - 1 OCTOBER 2001 TO 31 DECEMBER 2001 CUSTOMER BASE PERCENTAGE AT START NET STAKE AT END OF PERCENTAGE COUNTRY OPERATOR OWNERSHIP 1 OF PERIOD ADDITIONS CHANGES 2 PERIOD PREPAID 4 (%) (thousands) (thousands) (thousands) (thousands) (%) NORTHERN EUROPE UK Vodafone 100.0 12,799 365 - 13,164 63 Ireland Eircell Vodafone 100.0 1,611 90 - 1,701 72 Netherlands Vodafone 70.0 2,256 6 - 2,262 65 Sweden Europolitan 71.1 762 26 - 788 26 Vodafone Others 4,713 232 1 4,946 51 TOTAL 22,141 719 1 22,861 57 CENTRAL EUROPE Germany Vodafone D2 99.7 21,787 25 12 21,824 59 Hungary Vodafone 59.4 169 83 31 283 91 Others 1,498 21 - 1,519 40 TOTAL 23,454 129 43 23,626 55 SOUTHERN EUROPE Greece Vodafone 52.8 1,423 100 - 1,523 72 Italy Omnitel Vodafone 76.5 12,738 592 5 13,335 91 Malta Vodafone 80.0 105 10 - 115 93 Portugal Vodafone 50.9 * * - * * Spain Vodafone 91.6 6,824 171 - 6,995 55 Albania Vodafone 76.9 41 50 - 91 99 Others * * - * * TOTAL 22,815 1,061 5 23,881 78 AMERICAS United Verizon Wireless 44.2 12,658 335 - 12,993 6 States 3 Others 590 51 - 641 78 TOTAL 13,248 386 - 13,634 11 ASIA PACIFIC Japan J-Phone Vodafone 69.7 6,726 370 1,012 8,108 4 Australia Vodafone 95.5 1,991 35 - 2,026 36 New Zealand Vodafone 100.0 1,077 (33) - 1,044 77 Others 1,439 145 - 1,584 51 TOTAL 11,233 517 1,012 12,762 45 MIDDLE EAST AND AFRICA Egypt Vodafone 60.0 844 117 - 961 89 Others 1,879 254 - 2,133 83 TOTAL 2,723 371 - 3,094 84 GROUP TOTAL 95,614 3,183 1,061 99,858 50 1. All ownership percentages are stated as of 31 December 2001 and exclude options, warrants or other rights or obligations of Vodafone Group Plc to increase or decrease ownership in any venture. Ownership interests have been rounded to the nearest tenth of one percent. 2. Represents the acquisition of certain minority interests in Vodafone AG (formerly Mannesmann AG) during the period and the increased interest in J-Phone following completion of the Japan Telecom tender offer on 12 October 2001. 3. The Group's proportionate customer base has been adjusted for Verizon Wireless's proportionate ownership of its customer base across all its network interests of approximately 98.2%. In the absence of acquired interests, this proportionate ownership will vary slightly from quarter to quarter dependent on the underlying mix of net additions across each of these networks. 4. Prepaid customer percentages are calculated on a venture basis. * Listed subsidiary still to report VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES CONTROLLED ACTIVE CUSTOMER INFORMATION AS AT 31 DECEMBER 2001 CONTROLLED ACTIVE 1 CONTROLLED COUNTRY OPERATOR PREPAID CONTRACT TOTAL INACTIVE (%) (%) (%) (%) NORTHERN EUROPE UK Vodafone+ 75 99 84 16 Ireland Eircell Vodafone 97 98 97 3 Netherlands Vodafone 89 99 92 8 Sweden Europolitan 84 91 89 11 Vodafone+ TOTAL 80 98 87 13 CENTRAL EUROPE Germany Vodafone D2 88 95 91 9 Hungary Vodafone+ 93 99 94 6 TOTAL 88 95 91 9 SOUTHERN EUROPE Greece Vodafone+ 71 92 77 23 Italy Omnitel Vodafone 93 91 93 7 Malta Vodafone 94 99 94 6 Portugal Vodafone * * * * Spain Vodafone 87 94 90 10 Albania Vodafone 2 N/A N/A N/A N/A TOTAL 90 94 90 91 ASIA PACIFIC Japan J-Phone Vodafone 2 N/A N/A N/A N/A Australia Vodafone 88 95 92 8 New Zealand Vodafone 97 99 97 3 TOTAL 92 95 94 6 MIDDLE EAST AND AFRICA Egypt Vodafone 96 94 96 4 TOTAL 96 94 96 4 CONTROLLED GROUP TOTAL 87 95 90 10 1. Active customers are defined as customers who have made or received a chargeable event in the last three months or, where information is not available, defined as customers who have made a chargeable event in the last three months (indicated by +). 2. No customer activity information is presently available in either Albania, where network services commenced in August 2001, or Japan where the agreed tender offer for Japan Telecom completed on 12 October 2001. In both these networks, systems are being enabled to report customer activity in the near future. * Listed subsidiary still to report. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES MONTHLY REGISTERED BLENDED ARPU FOR THE 12 MONTHS TO 31 DECEMBER 2001 Operator Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Vodafone D2 EUR 27 24 27 24 25 25 26 26 25 26 24 24 Omnitel Vodafone EUR 27 25 29 27 28 29 30 28 27 28 26 27 J-Phone Vodafone JPY 8,100 8,600 7,200 8,100 7,600 7,800 7,600 8,200 7,900 7,500 7,900 7,700 Vodafone UK GBP 23 23 24 21 23 23 23 23 23 23 23 21 ARPU INFORMATION FOR THE 12 MONTH PERIOD TO 31 DECEMBER 2001 1 ARPU 2 COUNTRY OPERATOR LOCAL REGISTERED REGISTERED REGISTERED CURRENCY PREPAID CONTRACT TOTAL NORTHERN EUROPE UK Vodafone GBP 132 530 274 Netherlands Vodafone EUR * * * Sweden Europolitan SEK * 6,623 5,310 Vodafone CENTRAL EUROPE Germany Vodafone D2 EUR 112 572 303 Hungary Vodafone HUF 35,160 206,597 53,316 SOUTHERN EUROPE Greece Vodafone EUR * * * Italy Omnitel EUR 286 765 332 Vodafone Malta Vodafone MTL 99 911 183 Portugal Vodafone EUR * * * Spain Vodafone EUR 140 653 369 ASIA PACIFIC Japan J-Phone JPY N/A N/A 94,331 3 Vodafone Australia Vodafone AUD 284 885 684 New Zealand Vodafone NZD 285 1,801 637 MIDDLE EAST AND AFRICA Egypt Vodafone EGP 966 2,621 1,173 1. Vodafone introduced a new industry measurement of active customers in March 2001. As there is no historical information prior to 31 March 2001, Vodafone will include active ARPU numbers when it has a history of performance for a proper basis of comparison. However, the underlying levels of active customer spend continue to be higher than the reported registered ARPU. 2. ARPU is calculated for the 12 month period to 31 December 2001 and excludes handset revenues and connection fees. 3. This number is not directly comparable to the 12 months to September ARPU number previously disclosed, which included a degree of estimated information up to and including December 2000. The basis for reporting ARPU by J-Phone Vodafone has now been more closely aligned to the Group's methodology * Listed subsidiary still to report. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES PROPORTIONATE BASIS 12 MONTHS TO 31 DECEMBER 2001 DECEMBER 2001 (MONTH ONLY) COUNTRY OPERATOR MESSAGING INTERNET TOTAL MESSAGING INTERNET TOTAL DATA DATA DATA DATA DATA DATA NORTHERN EUROPE UK Vodafone 1 9.0% 1.1% 10.1% 12.1% 0.8% 12.9% Others 5.2% 0.2% 5.4% 7.4% 0.3% 7.7% TOTAL 7.4% 0.7% 8.1% 10.0% 0.6% 10.6% CENTRAL EUROPE Germany Vodafone D2 13.9% 0.4% 14.3% 14.2% 0.4% 14.6% Others 6.3% 0.2% 6.5% 8.2% 0.5% 8.7% TOTAL 13.0% 0.4% 13.4% 13.5% 0.4% 13.9% SOUTHERN EUROPE Italy Omnitel Vodafone 8.0% 0.2% 8.2% 10.8% 0.3% 11.1% Others 7.6% 0.1% 7.7% 7.9% 0.1% 8.0% TOTAL 7.8% 0.2% 8.0% 9.5% 0.2% 9.7% AMERICAS United States Verizon Wireless - 0.5% 0.5% 0.1% 0.5% 0.6% Others - - - - - - TOTAL - 0.5% 0.5% 0.1% 0.5% 0.6% ASIA PACIFIC Japan J-Phone 4.6% 7.7% 12.3% 5.1% 8.7% 13.8% Vodafone 2 Others 5.5% 0.2% 5.7% 6.3% 0.3% 6.6% TOTAL 4.8% 6.0% 10.8% 5.3% 7.1% 12.4% MIDDLE EAST AND AFRICA 3.1% - 3.1% 4.2% - 4.2% PROPORTIONATE GROUP TOTAL 3 6.5% 1.3% 7.8% 7.6% 1.7% 9.3% STATUTORY BASIS CONTROLLED GROUP TOTAL 3 9.1% 1.0% 10.1% 9.6% 2.6% 12.2% 1. With effect from the quarter ended 31 December 2001, the UK now reports SMS interconnect revenue and certain other data revenues as part of non-voice revenues, having previously been included in voice revenues. The annual and monthly percentages for September 2001 on this new basis were 8.9% and 11.3% respectively compared to the previously reported 8.0% and 9.2% respectively. 2. The basis for reporting data revenues by J-Phone has been more closely aligned to the Group's methodology. Previously, data revenues had been estimated on the basis of volume of data traffic whereas it is now reported on the basis of data billed to customers. The impact of this alignment to the Group's methodology has been to reduce the previously reported annual and monthly percentages for September 2001 of 11.8% and 14.6% respectively to 10.5% and 12.5% respectively. 3. The impact of the above changes in (1) and (2) above on the previously reported Group percentages were to leave the proportionate Group total annual and monthly percentages for September 2001 unchanged at 7.1% and 8.4% respectively and to increase the statutory controlled Group total annual and monthly percentages for September 2001 from 9.1% and 9.9% respectively to 9.2% and 10.3% respectively. This information is provided by RNS The company news service from the London Stock Exchange
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