Interim Management Statement
Vodafone Group Plc
31 January 2008
31 January 2008
INTERIM MANAGEMENT STATEMENT FOR THE QUARTER ENDED 31 DECEMBER 2007
Key highlights of the three month period ended 31 December 2007:
* Group revenue of £9.2 billion, an increase of 15.8%, with organic growth of
4.4%:
- Europe: service revenue growth of 2.0% for Europe, business segment
service revenue growth of 4.8%, messaging revenue up 8.1% and data
revenue up 35.5%, all on an organic basis
- EMAPA: service revenue growth of 48.1%, reflecting acquisitions of India
and Turkey. Organic growth of 13.7%
- Group data revenue up 51.6% with organic growth of 41.5%
- Total Communications products contribute around 13% of Group revenue
* Proportionate mobile customer base of 252.3 million at 31 December 2007, up
10.8 million
* Strong growth in net customer additions of 2.0 million at Verizon Wireless
and service revenue growth of 14.4%
* 3.1 million DSL customers across 11 markets following the acquisition of
Tele2's operations in Italy and Spain
* Site-sharing agreement in Italy and IT outsourcing agreement in India
demonstrate ongoing drive for efficiency
* Creation of an independent tower company in India to accelerate roll-out and
to reduce overall cost
* Vodafone reiterates the increased current year outlook which it announced
with its half-yearly results.
* Additionally the current year outlook, particularly for revenue, may benefit
from exchange rate movements
Arun Sarin, Chief Executive, commented:
'We have sustained our recent momentum in the third quarter, executing on our
strategic objectives in competitive markets, with over 250 million proportionate
customers driving strong growth in voice usage and data revenue. We are also
maintaining our rigorous focus on costs across the Group, positioning us well to
sustain our progress. We are reiterating our current year outlook.'
GROUP REVIEW
Operating review
----------------
Quarter ended 31 December
Group revenue 2007 2006 % change
£m £m £ Organic
------------------------ ----------------
Total revenue 9,163 7,915 15.8 4.4
========= =========
Voice revenue 6,303 5,534 13.9 0.7
Messaging revenue 1,045 933 12.0 7.7
Data revenue 558 368 51.6 41.5
Fixed line revenue 474 398 19.1 6.7
Other service revenue 10 - - -
--------- --------
Service revenue 8,390 7,233 16.0 4.2
========= =========
Group revenue increased by 15.8% to £9.2 billion and by 4.4% on an organic
basis. The net impact of acquisitions and disposals, principally India and
Turkey, contributed 6.6 percentage points to revenue growth and exchange rate
movements contributed a further 4.8 percentage points. Organic total revenue
growth was 2.2% in the Europe region, whilst the EMAPA region delivered 13.8% on
an organic basis.
Organic voice revenue growth of 0.7% reflects sustained growth in outgoing voice
minutes offset by effective price declines, as well as the expected impact of
the Group's European roaming price reductions, roaming regulation and the
cancellation of top up fees in Italy. Organic data revenue growth remains strong
at 41.5%, driven by the take-up of handheld business devices and Vodafone Mobile
Connect cards.
Group mobile customers in subsidiaries and joint ventures increased to 221.2
million at the end of the quarter from 210.4 million at 30 September 2007. On a
proportionate basis the closing customer base reached 252.3 million, with 10.8
million proportionate mobile net additions in the quarter. The Group has 24.7
million 3G devices, which includes 20% of the European customer base.
Review of strategic objectives
------------------------------
The Group continues to focus on executing against its strategic objectives.
Revenue stimulation and cost reduction in Europe
The Group's focus in Europe is to drive additional usage and revenue from core
voice and messaging services and to reduce the cost base.
On an organic basis, voice revenue for the quarter in Europe declined 2.2%,
with outgoing voice revenue declining 1.7%. This was primarily due to the
cancellation of top up fees in Italy. Across Europe a 17.7% fall in effective
outgoing price per minute has been offset by initiatives to stimulate additional
usage with 19.4% growth in total outgoing voice usage, including 7.7% growth on
a per customer basis. Organic messaging revenue growth for the quarter was 8.1%,
principally due to strong growth in messaging usage in Italy and the UK where
the total number of SMS messages sent in the quarter grew over 30% year on year,
achieved through the success of bundled offers.
Organic service revenue growth in the business segment, which represents 28% of
European service revenue, was 4.8%, helped by the strong growth in sales of
handheld business devices and Vodafone Mobile Connect cards, as the Group
continues to benefit from its market leading position.
The Group's cost reduction programmes are well on track. The Group announced a
six year site-sharing agreement with Telecom Italia; IT Application Development
and Maintenance outsourcing has now been implemented in 11 markets;
consolidation of the Group's European data centres into two central hubs is
largely complete and; the transformation of the supply chain management process
is on schedule, with over £300 million cumulative savings to date. In the
quarter Vodafone Essar also announced a five year agreement with IBM India to
outsource the management of its entire back office IT operations in a deal
designed to boost efficiency and to further enhance its service to customers.
For the 2008 financial year, the Group continues to expect mobile capital
expenditure to be 10% of mobile revenue for the total of the Europe region and
common functions and mobile operating expenses to be broadly stable when
compared with the 2006 financial year.
Innovate and deliver on our customers' total communications needs
The Group expects its Total Communications initiatives to represent
approximately 20% of Group revenue by March 2010, an increase from around 10% in
the 2007 financial year. In the third quarter, these areas contributed around
13% of revenue, up from around 11% in the prior year.
The Group continues to experience strong growth in sales of handheld business
devices and Vodafone Mobile Connect cards. The latter has been particularly
enhanced by the success of the Vodafone Mobile Connect USB modem offering into
the consumer segment. Vodafone now has over 4.9 million customers taking these
services across the Group, an increase of 107% compared to 31 December 2006.
Fixed location pricing plans are now available in 12 markets for both consumer
and business customers. The Group now has 4.2 million Vodafone At Home customers
on fixed location tariffs and 2.9 million Vodafone Office customers.
In December 2007, the Group completed the acquisition of Tele2's operations in
Italy and Spain, delivering Vodafone the infrastructure and expertise necessary
for a competitive broadband offering in two of its key European markets.
Vodafone is now offering fixed consumer broadband services to 3.1 million
customers across 11 markets. Of these, Germany remains the most significant with
Arcor having 2.4 million DSL lines at 31 December 2007, up 29.8% compared with
December last year.
Deliver strong growth in emerging markets
Further strong performances have been delivered during the quarter in the
Group's emerging markets, primarily driven by growth in customers. Organic
service revenue growth, excluding India and Turkey, grew 13.7% in the EMAPA
region, with growth at constant exchange rates of 18.7% in Romania, 30.7% in
Egypt, 30.1% in Kenya and 14.7% at Vodacom, the Group's 50% joint venture with
principal operations in South Africa.
The Group's more recent acquisitions in India and Turkey have delivered strong
year on year total revenue growth of 56% and 26% respectively at constant
exchange rates, calculated by assuming the Group owned the businesses for the
whole of both quarters. Vodafone Essar had nearly 40 million customers at the
end of December 2007.
Actively manage our portfolio to maximise returns
In December 2007, Vodafone Essar Limited, Bharti Infratel Limited and Idea
Cellular Limited announced the formation of an independent tower company, Indus
Towers Limited, to provide passive infrastructure services. Vodafone Essar will
own 42% of the company which will operate in 16 circles in India. This is
expected to accelerate the expansion of coverage, particularly into rural areas,
and improve network coverage to the benefit of the Indian consumer, and enable
the shareholders and other telecom operators to drive economies of scale.
Vodafone was part of a consortium that won the auction in December 2007 for the
second mobile licence in Qatar. Vodafone will contribute up to US$400 million of
cash in a mix of equity and debt, as well as its brand, international expertise
and a range of world-class products and services. It is intended that operations
will be launched later in the year.
Net debt was broadly unchanged since 30 September 2007, with the contribution
from free cash flow generated in the quarter offset by the increase in net debt
resulting from the acquisition of Tele2's operations in Italy and Spain and
exchange rate movements, particularly the Euro.
Outlook
-------
The Group's underlying financial performance for the quarter is consistent with
its expectations and the Group is therefore reiterating its outlook statement
for the year ending 31 March 2008(1). There have been significant recent
movements in exchange rates, notably a strengthening of the Euro. Should these
persist, this would have a favourable impact on the Group's financial
performance, particularly with respect to revenue, relative to the outlook
statement issued in the Group's half-yearly report in November 2007. The
components of this outlook statement were:
* Group revenue expected to be in the range of £34.5 billion to £35.1 billion.
Adjusted operating profit expected to be in the range of £9.5 billion to £9.9
billion, with the Group EBITDA margin lower year on year. Total depreciation
and amortisation charges anticipated to be around £5.9 billion to £6.0
billion, higher than the 2007 financial year.
* The Group expected capitalised fixed asset additions to be in the range £4.7
billion to £5.1 billion, including in excess of £1.0 billion in India.
* Reported free cash flow expected to be in the range of £4.4 billion to £4.9
billion. This is after taking into account £0.3 billion of expected tax
payments and associated interest in respect of the potential settlement of
a number of long standing tax issues.
The outlook for free cash flow is stated before payment for the second mobile
licence in Qatar.
(1) The Group's outlook reflects average foreign exchange rates for the 2008
financial year of approximately Euro 1.45:£1 and US$2.04:£1, which are
unchanged from the Group's Half-Yearly Financial Report. A substantial
majority of the Group's revenue, adjusted operating profit, capitalised
fixed asset additions and free cash flow is denominated in currencies
other than sterling, the Group's reporting currency.
REGIONAL RESULTS
Europe
------
Quarter ended 31 December
2007 2006 % change
£m £m £ Organic(1)
------------------------ ----------------
Total revenue 6,652 6,200 7.3 2.2
========= =========
Voice revenue 4,332 4,250 1.9 (2.2)
Messaging revenue 825 733 12.6 8.1
Data revenue 472 335 40.9 35.5
Fixed line revenue 462 373 23.9 5.5
Other service revenue 8 - - -
--------- ---------
Service revenue 6,099 5,691 7.2 2.0
========= =========
Quarter ended 31 December
Service revenue 2007 2006 % change
£m £m £ Organic(1)
------------------------ ----------------
Germany 1,266 1,269 (0.2) (5.2)
Italy 1,072 1,021 5.0 (3.1)
Spain 1,155 1,013 14.0 6.6
UK 1,235 1,166 5.9 5.9
Arcor 411 355 15.8 9.5
Other 1,059 958 10.5 5.0
Eliminations (99) (91) - -
--------- ---------
6,099 5,691 7.2 2.0
========= =========
Key performance indicators
Germany Italy Spain UK Other Europe
Organic growth % % % % % %
--------------------------------------------------------------------------------
Closing mobile
customers 10.8 13.2 9.3 8.9 9.0 10.4
Mobile voice usage 25.2 16.9 15.0 15.6 8.2 16.5
(1) Organic growth figures for Italy, Spain and the Europe region are stated
excluding the contribution from Tele2.
Mobile customers
The Europe region recorded 3.1 million net customer additions in the quarter, in
line with the same quarter last year. The total customer base reached 109.1
million at the end of the quarter, up 10.3 million since the same quarter last
year.
Mobile usage
Total voice usage increased by 16.5% compared with the same quarter last year.
Outgoing call volumes increased by 19.4% resulting from a 10.9% growth in
average customers and a 7.7% growth in outgoing usage per customer.
Germany was particularly strong with 31.3% growth in total outgoing usage,
driven by the take-up of bigger minute bundles and flat tariffs, with 19.1%
growth in usage per customer, mitigating the 27.1% decline in effective price
per minute. In Italy, total outgoing minute growth accelerated to 22.4%
year on year from 14.7% in the previous quarter through the success of a
promotion targeting unlimited calls to other Vodafone numbers and other contract
minute bundles.
Revenue
Reported revenue growth of 7.3% included 0.7 percentage points benefit from the
inclusion of Tele2 in Italy and Spain, and 4.4 percentage points from exchange
rate movements due to strengthening of the Euro in the quarter. Organic service
revenue growth for the quarter was 2.0%, consistent with the underlying trend in
the previous quarter, demonstrating continued robust performance in markets that
continue to be challenging.
Voice revenue
Voice revenue declined by 2.2% on an organic basis compared with the same
quarter last year, in line with the previous quarter when adjusted for the VAT
refund in the UK. Outgoing voice revenue declined 1.7% on an organic basis as
effective price per minute fell 17.7%, consistent with the previous quarter,
mitigated by strong usage growth, notably in Germany. Incoming voice revenue
declined by 3.9% on an organic basis with an 11.9% reduction in effective
revenue per minute, principally due to ongoing termination rate cuts, offset by
9.0% growth in incoming volumes. Roaming and international visitor revenues
declined 9.9% year on year on an organic basis from the impact of the Group's
initiatives on retail and wholesale roaming and the recent European roaming
regulation. Usage across these categories grew 14.1% year on year demonstrating
that the Group's lower pricing is gaining traction with customers.
Messaging revenue
The Europe region recorded 8.1% organic growth in messaging revenue compared
with the same quarter last year, in line with the previous quarter, but with
divergent trends across the region. Vodafone's Infinity proposition in Italy and
bundled offers in the UK contributed to constant exchange rate growth in
messaging revenue of 16.9% and 21.2% respectively. In Germany, messaging revenue
fell 8.6% at constant exchange rates, consistent with trends in the prior
quarter, as the new voice tariffs with inclusive on-net SMS led to an 18.7% fall
in effective price per message.
Data revenue
Data revenue growth remained strong, increasing by 35.5% on an organic basis and
continued to benefit from growth in business services and the increasing
penetration of 3G devices, which now number 22.1 million and represent 20% of
the European customer base. Handheld business devices increased by 128% since
December last year to 2.4 million, with Vodafone Mobile Connect cards up 69% to
1.9 million.
Fixed line revenue
Fixed line revenue grew 23.9%, boosted by the first time inclusion of Tele2 in
Italy and Spain, and by 5.5% on an organic basis. In Germany, Arcor generated
9.5% service revenue growth at constant exchange rates, driven by a 29.8% year
on year increase in DSL customers to 2.4 million. At the end of December 2007,
Italy and Spain had 0.4 million and 0.2 million DSL customers respectively
following the acquisition of Tele2's operations in those markets.
Associates and investments
SFR recorded 0.3 million proportionate net additions in the quarter, bringing
the proportionate mobile customer base to 8.3 million. Vivendi is expected to
report further financial information for SFR on 29 February 2008.
EMAPA
-----
Quarter ended 31 December
2007 2006 % change
£m £m £ Organic
(1)(2)
------------------------ ----------------
Total revenue 2,496 1,700 46.8 13.8
========= =========
Voice revenue 1,990 1,302 52.8 11.9
Messaging revenue 222 201 10.4 5.7
Data revenue 87 32 171.9 97.0
Fixed line revenue 12 26 (53.8) 72.0
Other service revenue 1 - - -
--------- ---------
Service revenue 2,312 1,561 48.1 13.7
========= =========
Quarter ended 31 December
Service revenue 2007 2006 % change
£m £m £ Organic
(1)(2)
------------------------ ----------------
Eastern Europe 786 629 25.0 9.9
Middle East, Africa & Asia 1,150 606 89.8 20.9
Pacific 377 326 15.6 7.5
Eliminations (1) - - -
--------- ---------
2,312 1,561 48.1 13.7
========= =========
Key performance indicators
Middle
East,
Eastern Africa &
Europe Asia Pacific EMAPA
Organic growth(1) % % % %
Closing mobile
customers 12.2 34.5 8.1 24.0
Mobile voice usage 20.8 42.7 14.1 29.3
The EMAPA region recorded 7.7 million customer net additions in the quarter
compared with 4.5 million in the same quarter last year. India accounted for
most of the increase, with Vodafone Essar generating a 71% increase in customers
year on year, adding 4.2 million customers in the quarter.
The total customer base reached 112.0 million, surpassing Europe for the first
time, and included 39.9 million customers in Vodafone Essar in India, making it
the largest operator by customers within the Vodafone Group.
Total revenue grew 13.8% on an organic basis, with reported revenue growth of
46.8%, including a 26.8 percentage points benefit from acquisitions and
disposals, primarily relating to the timing of the acquisition in India, and 6.2
percentage points from exchange rate movements, notably from Turkey. On a
proforma basis, including India and Turkey in the prior year period, total
revenue grew 22%.
Organic growth in service revenue in the quarter of 13.7% compares with 13.1% in
the previous quarter. Customer growth remains the key driver of the organic
increase in service revenue, with average customers up 26.3% on an organic
basis.
Eastern Europe
Organic growth in service revenue was 9.9% in Eastern Europe(1), slightly higher
than the 9.0% growth in the previous quarter.
Romania continues to be the principal driver of organic growth in Eastern
Europe, where the customer base has reached 8.8 million. Despite an increasingly
competitive environment, service revenue growth in Romania at constant exchange
rates was 18.7%(2), similar to growth in the previous quarter, with 17.5% growth
in average customers enhanced by a 1.1% increase in ARPU.
In Turkey, year on year total revenue growth for the quarter was 25.7%,
notwithstanding a very competitive environment. Customer growth continues to be
strong at 0.4 million in the quarter, but lower than the 0.8 million in the
previous quarter following measures taken to improve the quality of customers
acquired.
1. EMAPA, Eastern Europe and Middle East, Africa and Asia organic growth
where relevant exclude Turkey and India as these were not part of the
Group for all of the year to 31 March 2007.
2. On 1 October 2007, Romania rebased all of its tariffs and changed its
functional currency from US dollars to Euros. In calculating all constant
exchange rate and organic metrics including Romania, previous US dollar
amounts have been translated into Euros at the 1 October 2007 opening
exchange rate.
Middle East, Africa and Asia
Organic service revenue growth in Middle East, Africa and Asia was 20.9%,
similar to growth in the previous quarter, driven by 37.5% organic growth in
average customers.
At constant exchange rates, Egypt delivered growth in service revenue of 30.7%,
compared with 26.4% growth in the previous quarter. Customer net additions were
1.1 million. With a customer base of 13.3 million at 31 December 2007, average
customers have increased by 55.7% compared with the same quarter last year.
Vodacom had service revenue growth of 14.7% at constant exchange rates, lower
than the previous quarter reflecting lower average customer growth as market
penetration rises. The Group's share of net additions was 0.7 million, bringing
the Group's share of the closing customer base to 16.5 million. Messaging and
data revenue growth remain very strong, with a combined increase of 44.3%
compared to the prior year at constant exchange rates.
Vodafone Essar, the Group's Indian operation, registered 4.2 million customer
net additions in the quarter bringing the closing customer base to 39.9 million,
up 71% on December last year. Year on year total revenue growth for the quarter
was 56%, assuming the Group owned the business for the whole of both quarters.
Earlier this month the Department of Telecommunications in India allocated
spectrum to Vodafone Essar in six additional circles. The Group anticipates
launching operations in these circles later this calendar year, providing a
national footprint and enabling it to benefit from the rapid penetration growth
in rural areas.
Pacific
The Pacific area delivered 7.5% organic growth in service revenue, higher than
the 5.5% growth in the previous quarter. This has been driven by higher growth
in Australia in the postpaid customer base during the quarter, with greater
focus on new contract connections and an expansion in retail distribution,
combined with strong data and DSL growth in New Zealand.
Associates and investments
Verizon Wireless
In the US, Verizon Wireless continued its strong momentum, with service revenue
growth of 14.4% as robust ARPU was sustained by strong growth in messaging and
data revenue of 54% at constant exchange rates. Verizon Wireless maintained
strong growth in retail customers, with 1.9 million retail net additions
compared with 1.8 million in the previous quarter.
Other
The Group's other investments in EMAPA registered 0.9 million proportionate
customer net additions in the quarter, primarily relating to the Group's 3.3%
stake in China Mobile.
- ends -
For further information:
Vodafone Group
Investor Relations Media Relations
Tel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444
Notes to editors:
1. Vodafone, the Vodafone logos, Vodafone live!, Vodafone At Home, Vodafone
Office, Vodacom and Vodafone Mobile Connect are trademarks of the Vodafone
Group.
2. References to 'the previous quarter' are to the quarter ended 30 September
2007 unless otherwise stated.
3. Eliminations within the Europe and EMAPA service revenue tables represent
intercompany revenue between the segments within the respective region.
4. The basis of the calculation for organic growth is included on page 159
of the Group's Annual Report for the year ended 31 March 2007. For organic
revenue growth, the main adjustments within the EMAPA region are for the
acquisitions of Vodafone Essar in India and the Group's subsidiary in
Turkey, and the change in status of Vodafone's interest in Bharti Airtel
to an investment, as well as foreign exchange movements. For the Europe
region, the principal adjustments are for foreign exchange movements and
the acquisition of Tele2 in Italy and Spain.
5. The Group's outlook for the year ending 31 March 2008 is contained on page
59 of Vodafone's Annual Report for the year ended 31 March 2007 and was
updated in the Half-Yearly Financial Report for the six months ended 30
September 2007.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements which are subject to
risks and uncertainties because they relate to future events. In particular,
such forward-looking statements include statements with respect to Vodafone's
expectations as to expected savings from cost reduction initiatives, including
the site-sharing agreement in Italy; expectations as to levels of capital
expenditure and operating expenditure; targeted revenue from the Group's total
communications initiatives; the anticipated impact of favourable exchange rate
movements on the Group's results for the current fiscal year; anticipated
expansion of coverage in India through Vodafone Essar's investment in Indus
Towers Limited; the anticipated launch of operations in six additional circles
in India; the anticipated launch of operations in Qatar; and the Group's
expectations for revenue, adjusted operating profit, capitalised fixed asset
additions, depreciation and amortisation charges and free cash flow for the 2008
financial year contained within the outlook statement on page 3 of this
document. Some of the factors which may cause actual results to differ from
these forward-looking statements can be found by referring to the information
under the headings 'Cautionary Statement Regarding Forward-Looking Statements'
in the Half-Yearly Financial Report for the six months ended 30 September 2007
and 'Risk Factors, Seasonality and Outlook - Risk Factors' in Vodafone Group
Plc's Annual Report for the year ended 31 March 2007. The Half-Yearly Financial
Report and the Annual Report can be found on the Group's website
(www.vodafone.com).
KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES
MOBILE CUSTOMERS(1) - 1 APRIL 2007 TO 31 DECEMBER 2007
-----------------------------------------------------------------------------------------------
SIX MONTHS ENDED 30 SEPTEMBER 2007 QUARTER ENDED 31 DECEMBER 2007
-------------------------------------- -----------------------------------
OTHER
COUNTRY AT 1 APR NET MOVEMENTS AT 30 SEP NET OTHER AT 31 DEC PREPAID
(in thousands) 2007 ADDITIONS (2) 2007 ADDITIONS MOVEMENTS 2007 (3)
Europe
Germany 30,818 1,723 - 32,541 1,379 - 33,920 55.9%
Italy 21,034 1,373 - 22,407 384 - 22,791 91.2%
Spain 14,893 580 - 15,473 337 - 15,810 42.7%
UK 17,411 548 - 17,959 488 - 18,447 60.5%
--------------------------------------------------------------------
84,156 4,224 - 88,380 2,588 - 90,968 65.3%
--------------------------------------------------------------------
Other Europe
Albania 956 119 - 1,075 52 - 1,127 94.9%
Greece 5,057 289 - 5,346 92 - 5,438 68.7%
Ireland 2,177 40 - 2,217 48 - 2,265 72.4%
Malta 186 11 - 197 4 - 201 89.5%
Netherlands 3,880 (13) 25 3,892 146 - 4,038 43.0%
Portugal 4,751 206 - 4,957 154 - 5,111 78.7%
--------------------------------------------------------------------
17,007 652 25 17,684 496 - 18,180 68.1%
--------------------------------------------------------------------
Europe 101,163 4,876 25 106,064 3,084 - 109,148 65.8%
--------------------------------------------------------------------
EMAPA
Eastern Europe
Czech Republic 2,475 107 - 2,582 76 - 2,658 48.2%
Romania 7,954 625 - 8,579 229 - 8,808 65.2%
Hungary 2,163 49 - 2,212 92 - 2,304 56.2%
Turkey 13,900 2,337 (528) 15,709 407 - 16,116 89.4%
Poland 2,483 134 - 2,617 21 - 2,638 56.5%
--------------------------------------------------------------------
28,975 3,252 (528) 31,699 825 - 32,524 69.9%
--------------------------------------------------------------------
Middle East,
Africa & Asia
Egypt 9,652 2,178 356 12,186 1,147 - 13,333 95.5%
Kenya 2,433 750 - 3,183 515 - 3,698 98.8%
South Africa(4) 15,075 2,155 (1,447) 15,783 738 - 16,521 88.8%
India - 7,955 27,703 35,658 4,207 - 39,865 89.6%
--------------------------------------------------------------------
27,160 13,038 26,612 66,810 6,607 - 73,417 91.1%
--------------------------------------------------------------------
Pacific
Australia 3,367 64 - 3,431 142 - 3,573 71.5%
New Zealand 2,244 11 - 2,255 54 - 2,309 73.7%
Fiji 139 15 - 154 32 - 186 95.6%
--------------------------------------------------------------------
5,750 90 - 5,840 228 - 6,068 73.7%
--------------------------------------------------------------------
EMAPA 61,885 16,380 26,084 104,349 7,660 - 112,009 84.0%
--------------------------------------------------------------------
Group 163,048 21,256 26,109 210,413 10,744 - 221,157 75.9%
--------------------------------------------------------------------
Reconciliation to
proportionate
Minority interests
in above (5,904) (3,922) (9,336) (19,162) (2,046) - (21,208)
--------------------------------------------------------------------
Associates and
investments
United States 27,322 1,341 1 28,664 904 - 29,568 5.5%
Other 21,927 1,818 (2,185) 21,560 1,224 - 22,784 80.8%
--------------------------------------------------------------------
49,249 3,159 (2,184) 50,224 2,128 - 52,352
--------------------------------------------------------------------
Proportionate(5) 206,393 20,493 14,589 241,475 10,826 - 252,301 72.7%
====================================================================
Europe 109,032 4,963 25 114,020 3,389 - 117,409 65.8%
EMAPA 97,361 15,530 14,564 127,455 7,437 - 134,892 73.9%
-----------------------------------------------------------------------------------------------
Notes:
(1) Group customers are presented on a controlled (fully consolidated) and
jointly controlled (proportionately consolidated) basis in accordance with
the Group's current segments.
(2) Other movements relate to the acquisition of Vodafone Essar, the
disconnection of inactive SIM cards in Turkey, a share repurchase in
Egypt, a change in disconnection policies in Egypt, the Netherlands,
Turkey and South Africa as well as the acquisition of a customer base in
the United States.
(3) Prepaid customer percentages are calculated on a venture basis. At 31
December 2007, there were 770.3 million venture customers.
(4) South Africa refers to the Group's interests in Vodacom Group (Pty)
Limited and its subsidiaries, including those located outside of South
Africa.
(5) Proportionate customers are based on equity interests as at 31 December
2007. The calculation of proportionate customers for Vodafone Essar also
assumes the exercise of call options that could increase the Group's
equity interest from 51.95% to 66.98%. These call options can only be
exercised in accordance with Indian law prevailing at the time of exercise.
MOBILE CUSTOMER CHURN
--------------------------------------------------------------------------------
ANNUALISED CHURN INFORMATION IN THE QUARTER TO
------------------------------------------------------------
COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC
2006 2006 2006 2007 2007 2007 2007
--------------------------------------------------------------------------------
Germany(1) Total 20.7% 22.1% 20.1% 24.2% 20.7% 20.8% 20.1%
Contract 14.6% 13.5% 15.7% 14.9% 14.0% 14.7% 14.5%
Prepaid 26.0% 29.5% 23.9% 31.9% 26.4% 26.0% 24.7%
--------------------------------------------------------------------------------
Italy Total 20.8% 21.7% 19.4% 20.6% 18.1% 25.0% 24.1%
Contract 17.2% 13.6% 14.8% 14.1% 15.9% 14.7% 17.5%
Prepaid 21.1% 22.4% 19.8% 21.2% 18.3% 25.9% 24.8%
--------------------------------------------------------------------------------
Spain(2) Total 20.5% 37.0% 23.4% 24.7% 22.4% 24.5% 23.6%
Contract 12.3% 13.4% 15.3% 16.6% 14.8% 14.6% 15.2%
Prepaid 28.9% 62.5% 32.8% 34.5% 31.7% 37.2% 34.6%
--------------------------------------------------------------------------------
UK Total 32.8% 37.6% 35.4% 29.8% 34.1% 35.5% 34.7%
Contract 20.1% 18.8% 17.9% 17.4% 15.9% 15.3% 15.6%
Prepaid 40.9% 49.9% 47.0% 37.9% 46.0% 48.8% 47.4%
--------------------------------------------------------------------------------
Notes:
(1) The customer churn for Germany in the quarter ended 31 December 2006
benefited from a regulatory driven change in the prepaid disconnection
policy, which reduced disconnections by 291,000 in the quarter. The
underlying prepaid customer churn, excluding this change, was 31.1% and
total churn was 24.0%.
(2) The customer churn for Spain in the quarter ended 30 September 2006
includes the effect of 584,000 disconnections following a change in the
application of disconnection policies. The underlying customer churn,
excluding these disconnections, was 20.1%.
3G DEVICES(1)
--------------------------------------------------------------------------------
SIX MONTHS ENDED QUARTER ENDED 31
30 SEPTEMBER 2007 DECEMBER 2007
---------------------------------- ----------------------
COUNTRY (in AT 1 APR NET AT 30 SEP NET AT 31 DEC
thousands) 2007 ADDITIONS 2007 ADDITIONS 2007
--------------------------------------------------------------------------------
Germany 3,720 1,025 4,745 570 5,315
Italy 3,762 938 4,700 740 5,440
Spain 2,890 1,438 4,328 516 4,844
UK 1,938 1,157 3,095 166 3,261
Other Europe 2,353 520 2,873 363 3,236
--------------------------------------------------------------------------------
Europe 14,663 5,078 19,741 2,355 22,096
EMAPA(2) 1,492 653 2,145 440 2,585
--------------------------------------------------------------------------------
Group 16,155 5,731 21,886 2,795 24,681
--------------------------------------------------------------------------------
Consumer devices 14,458 5,033 19,491 2,199 21,690
Business devices 1,697 698 2,395 596 2,991
--------------------------------------------------------------------------------
Group 16,155 5,731 21,886 2,795 24,681
--------------------------------------------------------------------------------
Notes:
(1) 3G devices only include those in the Group's subsidiary and joint venture
undertakings. At 31 December 2007, there were an additional 3.7 million
(30 September 2007: 3.2 million, 30 June 2007: 3.3 million,
31 March 2007: 3.0 million) registered Vodafone live! with 3G and Vodafone
Mobile Connect card venture customers in the Group's associated
undertakings.
(2) During the quarter, the number of 3G devices in the EMAPA region were
revised upwards by 287,000 and 473,000 at 1 April 2007 and 30 September
2007, respectively, to align with Group policies.
MOBILE VOICE USAGE VOLUMES
--------------------------------------------------------------------------------
TOTAL VOICE MINUTES(1) IN THE QUARTER ENDED
--------------------------------------------------------------
COUNTRY (in 3O JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC
millions) 2006 2006 2006 2007 2007 2007 2007
--------------------------------------------------------------------------------
Europe
Germany 7,614 7,979 8,650 9,230 9,897 10,263 10,827
Italy 7,687 8,050 8,256 8,439 8,932 9,051 9,651
Spain 6,978 7,533 7,655 8,248 8,530 8,886 8,800
UK 7,207 7,579 8,160 8,790 8,963 9,112 9,434
Albania 148 166 160 167 196 215 188
Greece 2,075 2,216 2,113 1,985 2,168 2,282 2,244
Ireland 1,380 1,422 1,462 1,420 1,490 1,517 1,543
Malta 49 55 50 48 55 64 59
Netherlands 1,820 1,711 1,868 1,900 2,006 1,899 2,036
Portugal 1,472 1,606 1,586 1,612 1,657 1,836 1,764
--------------------------------------------------------------------------------
Europe 36,430 38,317 39,960 41,839 43,894 45,125 46,546
--------------------------------------------------------------------------------
EMAPA
Eastern Europe
Czech Republic 901 868 919 916 985 998 1,075
Hungary 948 980 1,030 1,030 1,110 1,149 1,206
Romania(2) 1,873 2,059 2,231 2,339 2,540 2,726 2,778
Turkey(3) 2,494 6,451 5,781 6,224 6,583 6,551 6,157
Joint Venture 575 641 717 681 769 819 855
--------------------------------------------------------------------------------
6,791 10,999 10,678 11,190 11,987 12,243 12,071
--------------------------------------------------------------------------------
Middle East,
Africa & Asia
Egypt 2,869 3,462 3,670 4,156 4,794 5,591 5,878
India(4) - - - - 26,713 33,897 43,261
Joint Ventures (5) 5,160 5,713 6,638 5,781 3,016 4,854 4,613
--------------------------------------------------------------------------------
8,029 9,175 10,308 9,937 34,523 44,342 53,752
--------------------------------------------------------------------------------
Pacific
Australia 2,006 2,141 2,238 2,222 2,179 2,252 2,422
New Zealand 597 597 672 771 793 834 888
Joint Venture 28 33 34 32 38 42 47
--------------------------------------------------------------------------------
2,631 2,771 2,944 3,025 3,010 3,128 3,357
--------------------------------------------------------------------------------
EMAPA 17,451 22,945 23,930 24,152 49,520 59,713 69,180
--------------------------------------------------------------------------------
Group 53,881 61,262 63,890 65,991 93,414 104,838 115,726
--------------------------------------------------------------------------------
Notes:
(1) The total voice minute information presented in the table above represents
network minutes, or the volume of minutes handled by each local network,
and includes incoming, outgoing and visitor calls. The voice minute
information in respect of Germany and New Zealand reflects billed minutes,
under which calls are rounded up to the nearest minute under certain
tariffs.
(2) During the quarter ended 31 December 2006, Vodafone Romania restated usage
volumes for all quarters in the prior year. Previous volumes were billed
minutes and this has now been restated to network minutes.
(3) On 24 May 2006, the Group acquired substantially all the assets and
business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. The quarter
ended 30 June 2006 has been restated to include voice minutes from the
acquisition date.
(4) Vodafone Essar is included from 8 May 2007.
(5) With effect from the quarter ended 30 September 2007, joint venture
minutes within the Middle East, Africa & Asia area include the Group's
share of minutes for Vodacom Group (Pty) Limited and its subsidiaries,
including those located outside of South Africa.
MESSAGING AND DATA AS A PERCENTAGE OF SERVICE REVENUE(1)
--------------------------------------------------------------------------------
QUARTER ENDED 31 DECEMBER 2007
-----------------------------------------------
COUNTRY MESSAGING DATA TOTAL
--------------------------------------------------------------------------------
Germany 14.0% 11.6% 25.6%
Italy 16.3% 6.9% 23.2%
Spain 9.3% 7.2% 16.5%
UK 19.1% 8.0% 27.1%
--------------------------------------------------------------------------------
Europe 13.5% 7.7% 21.2%
EMAPA 9.6% 3.7% 13.3%
--------------------------------------------------------------------------------
Group 12.5% 6.6% 19.1%
--------------------------------------------------------------------------------
HISTORIC MESSAGING AND DATA INFORMATION
--------------------------------------------------------------------------------
MESSAGING AND DATA AS A PERCENTAGE OF SERVICE REVENUE(1) IN THE
QUARTER ENDED
------------------------------------------------------------------
COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC
2006 2006 2006 2007 2007 2007 2007
--------------------------------------------------------------------------------
Germany 21.2% 21.6% 22.9% 24.4% 24.3% 24.9% 25.6%
Italy 17.3% 17.5% 18.7% 20.4% 21.2% 22.5% 23.2%
Spain 15.7% 14.7% 15.3% 16.0% 16.1% 17.3% 16.5%
UK 20.9% 21.7% 23.2% 24.3% 24.9% 25.3% 27.1%
--------------------------------------------------------------------------------
Europe 17.5% 17.7% 18.7% 19.6% 19.9% 20.7% 21.2%
EMAPA 12.6% 14.4% 15.0% 11.8% 12.9% 12.2% 13.3%
--------------------------------------------------------------------------------
Group 16.6% 16.9% 17.9% 18.0% 18.2% 18.5% 19.1%
--------------------------------------------------------------------------------
Note:
(1) Messaging and data percentages are calculated using service revenue from
all businesses within the Group and include fixed line revenue. At 30
September 2007, historical data was revised to provide comparative
information. Calculations are based on service revenue rounded to the
nearest 0.1 million using local currency for individual countries and
sterling for regional and Group numbers.
AVERAGE MONTHLY REVENUE PER USER IN THE QUARTER
--------------------------------------------------------------------------------------
COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC
2006 2006 2006 2007 2007 2007 2007
--------------------------------------------------------------------------------------
Europe:
--------------------------------------------------------------------------------------
Germany Total 22.1 22.4 20.9 19.3 19.5 19.5 18.0
(EUR) Contract 38.4 39.0 36.7 34.7 34.9 35.3 33.1
Prepaid 7.6 7.6 7.0 6.1 6.2 6.1 5.5
--------------------------------------------------------------------------------------
Italy Total 27.6 27.1 25.8 23.4 23.2 22.7 22.3
(EUR) Contract 72.6 68.0 71.1 69.5 69.8 65.2 65.4
Prepaid 23.3 23.2 21.5 19.1 18.8 18.6 17.2
--------------------------------------------------------------------------------------
Spain Total 35.3 36.4 35.3 33.8 36.3 36.5 34.7
(EUR) Contract 54.8 55.2 51.3 48.9 52.0 51.7 48.0
Prepaid 15.0 15.4 16.0 15.0 16.4 16.5 15.5
--------------------------------------------------------------------------------------
UK Total 23.7 24.5 23.6 22.7 23.1 24.1 22.7
(GBP) Contract 45.2 46.5 43.7 43.4 43.5 45.8 42.2
Prepaid 8.9 9.4 9.5 8.6 8.9 9.0 9.0
--------------------------------------------------------------------------------------
Albania Total 2,122 2,311 2,086 1,868 1,844 2,016 1,780
(ALL) Contract 17,240 17,941 16,329 14,612 14,403 14,733 11,781
Prepaid 1,606 1,782 1,605 1,419 1,366 1,497 1,308
--------------------------------------------------------------------------------------
Greece Total 31.1 31.0 27.6 24.7 25.5 26.2 22.9
(EUR) Contract 65.6 66.8 61.6 56.5 60.0 62.0 53.4
Prepaid 13.7 13.4 11.4 10.1 10.2 10.4 8.9
--------------------------------------------------------------------------------------
Ireland Total 48.8 46.9 45.6 44.6 45.4 45.1 43.9
(EUR) Contract 102.8 99.4 94.5 92.5 94.3 94.1 89.4
Prepaid 29.3 28.0 27.9 27.2 27.1 26.6 26.3
--------------------------------------------------------------------------------------
Malta(1) Total 14.7 16.6 12.6 12.0 14.0 15.5 12.9
(MTL) Contract 39.2 38.2 36.0 34.7 36.3 37.2 35.3
Prepaid 11.2 13.4 9.2 8.5 10.5 12.0 9.3
--------------------------------------------------------------------------------------
Netherlands Total 35.7 36.9 31.7 36.1 37.9 38.8 36.3
(EUR) Contract 63.5 64.6 52.0 57.8 59.7 59.6 55.8
Prepaid 10.1 10.4 9.8 9.8 10.6 10.8 9.4
--------------------------------------------------------------------------------------
Portugal Total 23.5 24.4 22.8 22.1 22.4 23.7 22.4
(EUR) Contract 62.2 62.8 57.8 54.2 54.9 59.0 54.2
Prepaid 13.0 13.9 13.2 13.2 13.2 14.0 13.4
--------------------------------------------------------------------------------------
EMAPA Subsidiaries:
--------------------------------------------------------------------------------------
Australia Total 49.4 52.4 54.0 51.3 50.5 49.5 53.2
(AUD) Contract 92.7 96.4 98.8 97.1 96.2 93.6 96.8
Prepaid 33.9 36.2 37.2 34.1 33.0 32.0 35.2
--------------------------------------------------------------------------------------
Czech
Republic Total 674 670 658 613 635 619 618
(CZK) Contract 978 966 946 897 916 889 891
Prepaid 331 334 331 295 320 320 319
--------------------------------------------------------------------------------------
Egypt Total 79.4 88.1 79.4 75.0 75.6 71.6 66.7
(EGP) Contract 292.1 309.7 289.9 295.8 308.8 304.5 281.2
Prepaid 57.1 66.7 61.4 59.1 60.4 58.2 55.6
--------------------------------------------------------------------------------------
Hungary Total 5,066 5,339 5,171 4,749 4,935 4,994 4,846
(HUF) Contract 9,129 9,097 8,529 7,847 8,010 7,832 7,484
Prepaid 3,125 3,359 3,250 2,839 2,873 2,930 2,801
--------------------------------------------------------------------------------------
India Total N/A N/A N/A N/A N/A 361 349
(INR) Contract N/A N/A N/A N/A N/A 995 1,059
Prepaid N/A N/A N/A N/A N/A 277 264
--------------------------------------------------------------------------------------
New Zealand Total 46.6 46.6 50.7 49.3 47.1 48.8 52.1
(NZD) Contract 126.1 125.3 128.9 122.8 117.2 118.7 120.3
Prepaid 23.2 22.5 23.7 23.4 21.4 22.0 23.7
--------------------------------------------------------------------------------------
Turkey Total N/A 16.5 14.4 14.4 15.7 16.3 14.6
(TRY) Contract N/A 31.4 28.2 28.7 29.2 29.8 28.7
Prepaid N/A 14.8 12.9 12.9 14.1 14.7 12.9
--------------------------------------------------------------------------------------
Romania(2) Total 10.7 11.2 11.0 9.8 11.0 11.1 11.1
(EUR) Contract 20.7 21.7 21.5 19.1 21.9 22.4 22.3
Prepaid 4.7 5.1 5.0 4.3 4.7 4.6 4.5
--------------------------------------------------------------------------------------
Notes:
(1) During the quarter ended 30 June 2007, Vodafone Malta restated previously
published prepaid and contract average monthly revenue per user to reflect
a revised analysis of historic service revenue.
(2) Romania adopted the Euro from 1 October 2007. Historical ARPU numbers have
been translated using the opening exchange rate on this date.
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