For the three months ended 30-June-2010, the Vodafone Group reported revenue increased by 4.8% to £11.3 billion and Group service revenue increased by 4.9% to £10.6 billion. On an organic basis, service revenue increased by 1.1% — an improvement of 1.7 percentage points on the previous quarter — as each of the regions delivered improved service revenue trends.
“These are the first quarterly results to show service revenue growth since the global recession impacted. We have achieved these results through our continuing commercial approach in key European markets, focusing especially on data, and from strong growth in emerging markets, with India now cash positive at an operating level and our highest ever quarterly revenue in Turkey. The financial outlook for the current year is confirmed,” stated Vittorio Colao, CEO.
Some highlights:
- In Europe service revenue fell by 1.7%, a 0.7 percentage point improvement on the previous quarter. Northern European businesses experienced an improvement in economic conditions, but southern European businesses continued to experience a weaker economic environment and poor consumer sentiment.
- Both Germany and the UK delivered a third successive quarterly improvement in organic service revenue trends and returned to positive service revenue growth, with each generating faster data revenue growth rates as a result of our focus on smartphones and data plans and, in Germany, on netbooks.
- Spain delivered a small improvement in organic service revenue trends, despite an increasingly competitive market.
- In Italy, significant price competition led to organic service revenue declined.
- Enterprise revenue returned to growth in Europe, increasing by 0.2% with improved roaming activity and customer wins by Vodafone Global Enterprise.
- In Asia Pacific and Middle East, service revenue increased by 10.5%, a 5.5 percentage point improvement on the previous quarter. The improvement was driven by continued strong customer growth and better usage trends in India where there have been no recent significant price reductions by market leaders.
- Capital expenditure was £1,041 million reflecting continued European network investment, enhancement of the network in Turkey and continued network rollout in India, albeit at a slower rate than in the first quarter last year. In addition, the Group invested £3.0 billion in spectrum licences in India and Germany.
- Free cash flow was £1,767 million and was broadly stable year on year after adjusting for foreign exchange.
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