Key Performance Indicators
Vodafone Group Plc
26 July 2004
26 July 2004
VODAFONE CONTINUES STRONG PERFORMANCE IN CUSTOMER AND REVENUE GROWTH
Vodafone 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 €1 to €362 in Italy, down €1 at €309 in Germany
and Y2,330 to Y78,365 in Japan, compared to March 2004. ARPU in the UK was up
£5 to £314, including a further £4 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 from £309 for the
year to March 2004, including a £4 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 €309 compared to €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 €362 from €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 Y78,365 from Y80,695 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.
- ends -
For further information:
Vodafone Group
Tim Brown, Group Corporate Affairs Director
Tel: +44 (0) 1635 673310
Investor Relations
Melissa Stimpson
Darren Jones
Tel: +44 (0) 1635 673310
Media Relations
Bobby Leach
Ben Padovan
Tel: +44 (0) 1635 673310
Tavistock Communications
Lulu Bridges
Justin Griffiths
Tel: +44 (0) 20 7920 3150
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
COUNTRY PERCENTAGE AT NET STAKE AT PREPAID(4)
OWNERSHIP(2) 1 APR 2004 ADDITIONS CHANGES(3) 30 JUN 2004
(%) (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 2003 SEP 2003 DEC 2003 MAR 2004 JUN 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 Nov
2003 2003 2003 2003 2003 2003 2003 2003
Germany EUR 25.4 26.2 26.1 27.9 26.7 27.0 27.0 24.9
Italy EUR 29.4 30.1 30.7 32.2 29.7 31.1 31.1 29.0
Japan JPY 7,050 7,040 6,850 7,130 7,030 6,710 6,760 6,460
UK(2) GBP 24.4 25.2 25.5 25.7 24.2 25.6 26.8 26.0
COUNTRY Dec Jan Feb Mar Apr May Jun
2003 2004 2004 2004 2004 2004 2004
Germany EUR 25.4 24.5 23.2 26.2 25.0 25.5 25.8
Italy EUR 30.4 29.6 27.8 30.6 29.9 30.1 30.8
Japan JPY 6,690 6,360 6,100 6,560 6,300 6,150 6,150
UK(2) GBP 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 CURRENCY REGISTERED REGISTERED REGISTERED
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. 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,
£292 and £300 to £297, £297 and £303 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 (MONTH ONLY)
---------------------------------------------------- ----------------------------------------------------
COUNTRY JUN 2003 SEP 2003 DEC 2003 MAR 2004 JUN 2004 JUN 2003 SEP 2003 DEC 2003 MAR 2004 JUN 2004
---------------------------------------------------- ----------------------------------------------------
Germany 16.7% 17.0% 17.2% 17.4% 17.4% 16.9% 16.3% 19.5% 16.9% 17.1%
Italy 11.8% 12.2% 12.7% 13.3% 13.5% 12.5% 12.4% 14.7% 13.6% 13.2%
Japan 20.9% 21.3% 21.8% 21.9% 21.9% 21.8% 21.2% 22.4% 21.5% 21.1%
UK 14.7% 15.0% 15.5% 16.1% 16.6% 14.6% 14.7% 17.5% 16.9% 17.2%
Proportionate
Total 11.7% 12.2% 12.5% 13.0% 13.3% 12.1% 12.2% 14.2% 13.2% 13.2%
Statutory
Total 15.0% 15.5% 15.9% 16.1% 16.3% 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.
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