Vodafone hit by India, UK woes in the last quarter

Vodafone

The reason for Vodafone’s decision to enter into merger talks in India were laid bare as the UK-based operator unveiled its latest financials.

Revenues at its Indian opco declined 1.9 percent year-on-year – rising to -5.5 percent when forex movements are included – to €1.45 billion in the three months to December.

Vodafone said that despite adding four million customers in the period, competition had “heightened”.

For example, new entrant Jio’s move to offer free data services meant Vodafone’s data browsing revenue growth slowed from 16 percent in the three months to September to 0.6 percent in the last quarter.

The company said earlier this week it was having discussions with the Aditya Birla Group about a possible merger in India.

Talks are ongoing.

The performance of other markets in the region, notably Turkey, Egypt and Ghana, pushed like-for-like service revenues at Vodafone’s Africa, the Middle East and Asia Pacific business unit up 3.9 percent to €4.5 billion.

Group revenues fell 3.9 percent to €13.7 billion, largely due to negative forex movements, but like-for-like services revenues grew 1.7 percent.

Alongside challenges in India, Vodafone has problems in its home market.

The UK had a terrible quarter as reported revenues fell 19 percent on the back of the weak pound, while enterprise and MVNO customer losses pushed like-for-like service revenues down 3.2 percent.

Group CEO Vittorio Colao said that the long-awaited launch of TV services remained on hold as it looked to build up its base of broadband customers.

It added 32,000 retail broadband customers in the period to reach 129,000 in total.

Despite the fall in the UK, like-for-like service revenues in Europe registered a 0.7 percent increase.

Italy was the standout performer, as the company added one million 4G customers in the quarter to hit 8.3 million in total and services revenues from fixed-line services jumped 12 percent.

However, Colao said the impending launch from France’s Iliad would “clearly” present a challenge going forward.

Read more
Vodafone UK Enterprise Chief: Brexit, BT-EE merger could be positive

More News

Bouygues Telecom aims high in bid to boost FTTH subscriber base Bouygues Telecom aims high in bid to boost FTTH subscriber base Bouygues Telecom has signed a deal to start providing a FTTH service in partnership with Altitude Infrastructure. More detail
Telekom Austria makes first investment in startup from its own incubator Telekom Austria makes first investment in startup from its own incubator Telekom Austria has made its first investment in a company fostered by its start-up program. More detail
Virgin Media hands control of revenue management to Netcracker Virgin Media hands control of revenue management to Netcracker Virgin Media has signed a managed services deal with Netcracker as it looks to overhaul its BSS. More detail
Deutsche Telekom sends execs back to school to boost digital leadership Deutsche Telekom sends execs back to school to boost digital leadership Deutsche Telekom has teamed up with an American business school to improve the digital skills of its managers. More detail
Ireland’s SIRO launches free gigabit internet service for businesses Ireland’s SIRO launches free gigabit internet service for businesses FTTB provider SIRO is offering free gigabit connectivity to businesses in Ireland as part of a new initiative to boost competitiveness outside the country’s big cities. More detail
    

@eurocomms