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Vodafone Continues Strong Performance in Customer and Revenue Growth |
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July 29 2004Vodafone Group Plc ("Vodafone")
announces today key performance indicators for the quarter ended 30 June 2004.
The main highlights are:
* 3.1 million organic net additions, and 2.7 million additions from stake
changes, increasing the proportionate customer base to 139.2 million;
* Blended annual ARPU up euro 1 to euro 362 in Italy, down euro 1 at euro
309 in Germany and yen 2,330 to yen 78,365 in Japan, compared to March
2004. ARPU in the UK was up 5 pounds to 314 pounds, including a
further 4 pounds uplift from the acquisition of Singlepoint;
* Total data revenues increased to 16.3% of controlled service revenues
for the year to June 2004 from 15.0% for the year to June 2003;
controlled data revenues for the quarter up 13% on an organic basis on
the same quarter last year;
* 9 million controlled Vodafone live!(TM) customers at the end of June
2004, with a further 1.3 million customers in non-controlled
operations;
* Mobile Connect Card sales in controlled operations increased to over
300,000, including over 50,000 with 3G capability.
Arun Sarin, Chief Executive of Vodafone, commented:
"Overall we feel we have made a very strong start to this year. We have
recorded good performances in both customer and revenue growth. With over 139
million proportionate customers, our business is progressing well, despite a
tougher competitive environment in some markets. Data revenues continue to
increase helped by Vodafone live! where we now have over 9 million controlled
customers. These KPI's are in line with our expectations and we are therefore
reiterating our guidance for the year to March 2005."
United Kingdom
Vodafone UK added 132,000 net customers in the quarter, taking the total
base to 14.2 million registered customers, an increase of almost 7% since last
year. Churn has remained stable due to continued focus on customer retention
and loyalty initiatives. Blended annual ARPU increased to 314 pounds from
309 pounds for the year to March 2004, including a 4 pounds uplift from the
Singlepoint acquisition. The underlying increase in blended ARPU primarily
reflects growth in data usage.
The combined benefit of growth in both average customers and in blended
ARPU has led to a 14% growth in service revenue for the quarter when compared
to the same quarter last year. Data as a percentage of service revenue for
the year to June 2004 was 16.6%, up from 14.7% for the year to June 2003,
reflecting the benefit of the increasing penetration of Vodafone live!(TM)
customers, who now total 2 million.
Net acquisition and retention costs as a percentage of service revenues in
the quarter were slightly lower than in the quarter to March 2004 due to an
increased focus on direct channels but significantly higher than the same
quarter last year, reflecting the increased level of competition in the UK
market.
Germany
Net customer additions of 462,000 demonstrate continued strong growth in
Germany, resulting in a closing base of 25.5 million customers. Lower
spending contract customers continue to represent the majority of net
additions with an added benefit from a slightly improved churn rate.
Blended annual ARPU was euro 309 compared to euro 310 for the year to
March 2004, reflecting the impact of lower spending new customers.
Strong customer growth was the primary driver behind a 7% increase in
service revenue for the quarter compared to the same quarter last year, when
measured in local currency. Data as a percentage of service revenue for the
year to June 2004 was 17.4%, up from 16.7% for the year to June 2003 due to
the increased penetration of Vodafone live!(TM) customers to 3 million.
Net acquisition and retention costs as a percentage of service revenues in
the quarter were broadly stable compared with the previous quarter to March
2004 and the same quarter last year.
Italy
Proportionate net customer additions were 205,000 in the quarter, leading
to a total proportionate customer base of 16.4 million. Blended annual ARPU
increased slightly to euro 362 from euro 361 for the year to March 2004, with
increasing voice and data usage being offset by a 1% increase in inactivity
levels due to the effect of increased competition. Churn remained broadly
stable.
Service revenue for the quarter increased 10% on the same quarter last
year, when measured in local currency. Data as a percentage of service
revenue increased to 13.5% for the year to June 2004 from 11.8% for the year
to June 2003, reflecting the benefit from a series of promotions and an
increase in Vodafone live!(TM) customers to 1.3 million.
Net acquisition and retention costs as a percentage of service revenues in
the quarter slightly increased on the same period last year, reflecting the
increase in competitive activity in the Italian market. However, these costs
remain at very low levels when compared to the rest of the Group.
Japan
The closing proportionate base in Japan was 13.2 million, including an
additional 2.7 million customers from stake changes as a result of the tender
offers for Vodafone Holdings KK and Vodafone KK announced in May. The Group
had an effective ownership of 87.7% in Vodafone KK at the end of June. Churn
levels remained stable, benefiting from the continued investment in customer
retention activities.
Vodafone Japan continued to experience a downward trend in blended annual
ARPU, falling to yen 78,365 from yen 80,695 for the year to March 2004. The
fall in ARPU reflects the competitive environment, increasing market
penetration and growth in prepaid customers.
Service revenue for the quarter decreased by 6% compared to the same
quarter last year; however, it was only 1% lower than the quarter to March
2004. Data as a percentage of service revenue of 21.9% for the year to June
2004 was up slightly on the 20.9% recorded for the year to June 2003 and
continues to represent the highest level of data revenue in the Group.
Net acquisition and retention costs as a percentage of service revenues in
the period increased slightly on the same quarter last year reflecting the
continued high level of competition in the Japanese market.
Products and services
Vodafone live!(TM) is now available in 20 countries, including 3 partner
networks. Vodafone live!(TM) with 3G was originally launched in May and is
now available in 7 countries, most recently in Sweden.
Vodafone has continued to extend the availability of its business
offerings, with the GPRS version of the Mobile Connect Card available in 13
countries and the 3G version in 10. Significant progress has been made in
product offerings to the corporate market with Wireless Office, now available
in 10 markets, in conjunction with Blackberry from Vodafone, which is now
available in 11 countries.
Notes to editors
(1) The guidance for the year to March 2005 is contained in Vodafone's
Preliminary Announcement of Results for the year ended 31 March 2004
in which there is a discussion of forward-looking statements and the
risks associated with them.
(2) Service revenue growth is calculated in local currency and before the
elimination of intercompany revenue.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
PROPORTIONATE CUSTOMERS(1) - 1 APRIL 2004 TO 30 JUNE 2004
AT AT
PERCENTAGE 1 APR NET STAKE 30 JUN
COUNTRY OWNERSHIP(2) 2004 ADDITIONS CHANGES(3) 2004 PREPAID(4)
(%) (000s) (000s) (000s) (000s) (%)
UK & IRELAND
UK 100.0% 14,095 132 - 14,227 60%
Ireland 100.0% 1,864 17 - 1,881 72%
TOTAL 15,959 149 - 16,108 61%
NORTHERN EUROPE
Germany 100.0% 25,012 462 - 25,474 51%
Hungary 87.9% 1,255 72 - 1,327 80%
Netherlands 99.9% 3,399 55 - 3,454 57%
Sweden 100.0% 1,438 41 - 1,479 37%
Others 9,483 114 - 9,597 48%
TOTAL 40,587 744 - 41,331 50%
SOUTHERN EUROPE
Italy 76.8% 16,232 205 - 16,437 92%
Albania 99.7% 527 22 - 549 97%
Greece 99.4% 3,655 * * * *
Malta 100.0% 161 1 - 162 91%
Portugal 100.0% 3,248 72 - 3,320 72%
Spain 100.0% 9,705 251 - 9,956 56%
Others 738 * * * *
TOTAL 34,266 621 - 34,887 77%
AMERICAS
United States(5) 44.4% 17,257 682 - 17,939 6%
TOTAL 17,257 682 - 17,939 6%
ASIA PACIFIC
Japan 87.7% 10,427 77 2,698 13,202 10%
Australia 100.0% 2,486 12 - 2,498 57%
New Zealand 100.0% 1,607 68 - 1,675 79%
Others 4,969 278 - 5,247 67%
TOTAL 19,489 435 2,698 22,622 62%
MIDDLE EAST
AND AFRICA
Egypt 67.0% 1,924 86 - 2,010 81%
Others 3,939 359 - 4,298 87%
TOTAL 5,863 445 - 6,308 86%
GROUP TOTAL 133,421 3,076 2,698 139,195 57%
(1) A customer is defined as a SIM, or in territories where SIMs do not
exist, a unique mobile telephone number, which has access to the
network for any purpose (including data only usage) except telemetric
applications. Telemetric applications include, but are not limited
to, asset and equipment tracking, mobile payment / billing
functionality (for example, vending machines and meter readings) and
includes voice enabled customers whose usage is limited to a central
service operation (for example, emergency response applications in
vehicles).
(2) All ownership percentages are stated as at 30 June 2004 and exclude
options, warrants or other rights or obligations of the Group to
increase or decrease ownership in any venture. Ownership interests
have been rounded to the nearest tenth of one percent.
(3) Represents a stake increase in Vodafone Japan of 18.0% from 69.7% to
87.7%.
(4) Prepaid customer percentages are calculated on a venture basis. At 30
June 2004, there were 353.6 million total venture customers.
(5) 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 98.6% at 30 June 2004. In the
absence of acquired interests, this proportionate ownership will vary
slightly from quarter to quarter depending on the underlying mix of
net additions across each of these networks.
* Listed subsidiary still to report.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
VENTURE VODAFONE LIVE!(TM) CUSTOMERS
QUARTER TO 30 JUNE 2004
COUNTRY AT NET AT
1 APR 2004 ADDITIONS 30 JUN 2004
(000s) (000s) (000s)
Germany 2,358 623 2,981
Italy 1,024 262 1,286
UK 1,535 447 1,982
Other 1,925 840 2,765
Controlled Total 6,842 2,172 9,014
Vodafone Japan rebranded its J-Sky service to Vodafone live!(TM) on 1
October 2003. The handsets do not yet incorporate the full Vodafone
live!(TM) experience and so have been excluded from the table above. At
June 2004 there were 13.0 million Vodafone live!(TM) registered venture
customers in Japan (March 2004: 13.0 million).
The table above only includes Vodafone live!(TM) venture customers in
controlled operations. At June 2004 there were an additional 1.3 million
Vodafone live!(TM) venture customers in associated undertakings (March
2004: 0.7 million).
CONTROLLED ACTIVE CUSTOMER INFORMATION AS AT 30 JUNE 2004
CONTROLLED ACTIVE CUSTOMERS(1) AS AT
COUNTRY JUN SEP DEC MAR JUN
2003 2003 2003 2004 2004
Germany 93% 92% 92% 93% 93%
Italy 93% 94% 93% 93% 92%
Japan 98% 98% 98% 97% 97%
UK 91% 91% 91% 91% 91%
Controlled Total 93% 93% 93% 94% 93%
(1) Active customers are defined as customers who have made or received a
chargeable event in the last 3 months.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
MONTHLY REGISTERED BLENDED ARPU FOR THE 15 MONTHS TO 30 JUNE 2004
COUNTRY Apr May Jun Jul Aug Sep Oct
Germany EUR 25.4 26.2 26.1 27.9 26.7 27.0 27.0
Italy EUR 29.4 30.1 30.7 32.2 29.7 31.1 31.1
Japan JPY 7,050 7,040 6,850 7,130 7,030 6,710 6,760
UK(2) GBP 24.4 25.2 25.5 25.7 24.2 25.6 26.8
COUNTRY Nov Dec Jan Feb Mar Apr May Jun
Germany EUR 24.9 25.4 24.5 23.2 26.2 25.0 25.5 25.8
Italy EUR 29.0 30.4 29.6 27.8 30.6 29.9 30.1 30.8
Japan JPY 6,460 6,690 6,360 6,100 6,560 6,300 6,150 6,150
UK(2) GBP 26.0 26.2 27.0 24.1 28.3 25.3 27.8 26.8
ARPU INFORMATION FOR THE 12 MONTH PERIOD TO 30 JUNE 2004
ARPU(1)
COUNTRY REGISTERED REGISTERED REGISTERED
CURRENCY PREPAID CONTRACT TOTAL
UK & IRELAND
UK(2) GBP 129 567 314
Ireland EUR 364 1,150 591
NORTHERN EUROPE
Germany EUR 128 491 309
Hungary HUF 42,537 163,190 62,200
Netherlands EUR 165 879 471
Sweden SEK 863 5,863 4,252
SOUTHERN EUROPE
Italy EUR 308 920 362
Greece EUR * * *
Malta MTL 97 898 167
Portugal EUR 187 685 331
Spain EUR 172 668 389
ASIA PACIFIC
Japan JPY N/A N/A 78,365
Australia AUD 306 941 601
New Zealand NZD 349 1,836 668
MIDDLE EAST AND AFRICA
Egypt EGP 777 3,080 1,198
ARPU - HISTORY
REGISTERED TOTAL ARPU FOR THE 12 MONTH PERIOD TO
COUNTRY CURRENCY JUN SEP DEC MAR JUN
2003 2003 2003 2004 2004
Germany EUR 313 312 311 310 309
Italy EUR 351 355 359 361 362
Japan JPY 86,183 84,818 82,917 80,695 78,365
UK(2) GBP 297 297 303 309 314
(1) ARPU is calculated as total revenues excluding handset revenues and
connection fees divided by the weighted average number of customers
during the period.
(2) During the period from 1 October 2002 to 31 March 2003, Vodafone UK
operated under interim commercial terms with one of its service
providers. Final terms were agreed in April 2003. Recognising
revenues on a consistent basis during the interim period to the bases
before and after this period would result in additional service
revenues of 74 million pounds. For consistency and comparability
purposes, these revenues have been included in the calculation of UK
ARPU but have been excluded from Group turnover in accordance with UK
GAAP.
The impact of the inclusion of these amounts has been to increase
ARPU for the 12 months to June 2003, September 2003 and December 2003
from 291 pounds, 292 pounds and 300 pounds to 297 pounds, 297 pounds
and 303 pounds respectively.
* Listed subsidiary still to report.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES(1)
PROPORTIONATE BASIS:
12 MONTHS TO 30 JUNE 2004 JUNE 2004 (MONTH ONLY)
COUNTRY MESSAGING DATA TOTAL MESSAGING DATA TOTAL
UK & IRELAND
UK 14.4% 2.2% 16.6% 14.3% 2.9% 17.2%
Ireland 19.0% 1.6% 20.6% 18.3% 1.9% 20.2%
TOTAL 15.1% 2.1% 17.2% 14.9% 2.7% 17.6%
NORTHERN EUROPE
Germany 15.4% 2.0% 17.4% 14.5% 2.6% 17.1%
Others 9.1% 1.6% 10.7% 9.0% 1.9% 10.9%
TOTAL 12.4% 1.9% 14.3% 11.8% 2.3% 14.1%
SOUTHERN EUROPE
Italy 12.4% 1.1% 13.5% 11.8% 1.4% 13.2%
Others 10.2% 1.1% 11.3% 10.2% 1.5% 11.7%
TOTAL 11.3% 1.1% 12.4% 10.9% 1.5% 12.4%
AMERICAS
United States 1.6% 1.6% 3.2% 2.0% 2.1% 4.1%
Others 0.1% - 0.1% - - -
TOTAL 1.6% 1.6% 3.2% 2.0% 2.1% 4.1%
ASIA PACIFIC
Japan 7.6% 14.3% 21.9% 7.4% 13.7% 21.1%
Others 12.7% 1.5% 14.2% 14.9% 1.9% 16.8%
TOTAL 8.9% 11.1% 20.0% 9.2% 10.9% 20.1%
MIDDLE EAST
AND AFRICA 5.0% 0.2% 5.2% 4.9% 0.4% 5.3%
PROPORTIONATE
GROUP TOTAL 10.1% 3.2% 13.3% 9.8% 3.4% 13.2%
STATUTORY BASIS:
CONTROLLED
GROUP TOTAL 12.0% 4.3% 16.3% 11.7% 4.3% 16.0%
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES - HISTORY
12 MONTHS TO
COUNTRY JUN SEP DEC MAR JUN
2003 2003 2003 2004 2004
Germany 16.7% 17.0% 17.2% 17.4% 17.4%
Italy 11.8% 12.2% 12.7% 13.3% 13.5%
Japan 20.9% 21.3% 21.8% 21.9% 21.9%
UK 14.7% 15.0% 15.5% 16.1% 16.6%
Proportionate Total 11.7% 12.2% 12.5% 13.0% 13.3%
Statutory Total 15.0% 15.5% 15.9% 16.1% 16.3%
(MONTH ONLY)
COUNTRY JUN SEP DEC MAR JUN
2003 2003 2003 2004 2004
Germany 16.9% 16.3% 19.5% 16.9% 17.1%
Italy 12.5% 12.4% 14.7% 13.6% 13.2%
Japan 21.8% 21.2% 22.4% 21.5% 21.1%
UK 14.6% 14.7% 17.5% 16.9% 17.2%
Proportionate Total 12.1% 12.2% 14.2% 13.2% 13.2%
Statutory Total 15.3% 15.2% 17.3% 16.1% 16.0%
(1) Non-voice services as a percentage of service revenues are calculated
before the elimination of intercompany revenue at a country level and
after elimination at the Group level