Key Performance Indicators
Vodafone Group Plc
24 July 2006
24 July 2006
VODAFONE REPORTS FIRST QUARTER KPIs
Vodafone Group Plc ('Vodafone') today announces key performance indicators for
the quarter ended 30 June 2006. The main highlights are:
• Good overall operating performance in challenging markets and in line
with expectations
• Organic growth of 6.4% for the quarter in total proportionate mobile
revenue, with 1.3% growth in Europe and 13.9% in EMAPA. On a statutory
basis, growth in total revenue was 9.2%, with organic mobile service
revenue growth of 4.5%
• 4.5 million proportionate organic net additions, with a further 11.7
million from the acquisition of Telsim in Turkey. Total proportionate
customer base now at 186.8 million
• Continued growth in 3G in the quarter with 1.3 million 3G devices added.
The total 3G device base is now 9.1 million in the Group's subsidiaries and
joint ventures and a further 2.0 million in the Group's associates
• 3G Broadband through HSDPA now available in 8 of the Group's markets
• Over 7 million customers now registered for Vodafone Passport
• Vodafone re-iterates its current year guidance. The Group expects
organic growth for this financial year in proportionate mobile revenue in
the 5% to 6.5% range. Vodafone also expects proportionate mobile EBITDA
margin for this financial year to be around 1 percentage point lower than
the previous financial year on an organic basis
Arun Sarin, Chief Executive of Vodafone, commented:
'This is a robust operating performance in testing markets with revenue for the
quarter in line with expectations. A number of our EMAPA businesses have
recorded good customer growth and whilst many markets in Europe remain highly
competitive, we are on track with our revenue and cost initiatives in this
region.'
Group review
Vodafone saw continued intense competition across Europe during the quarter,
particularly in some of its major markets. However, a number of businesses
within the EMAPA region continue to perform very well, including Verizon
Wireless in the United States and several of the Group's emerging market
operations. In order to execute against these trends, the Group recently
reorganised into three principal business units: Europe, EMAPA and New
Businesses.
Good customer growth was recorded across many of the Group's markets during the
quarter, with organic proportionate net customer additions of 4.5 million
representing annualised quarterly growth in customers of 10.6%. With market
penetration rates now typically over 100% in Western Europe, Vodafone is focused
on stimulating additional revenue streams from existing customers.
Organic proportionate mobile revenue growth for the quarter was 6.4% compared
with the same quarter last year. As a result, Vodafone continues to expect
organic growth in proportionate mobile revenue for the full year to be in the 5%
to 6.5% range. Termination rate reductions continue to affect the performance in
several businesses, most notably Italy. The estimated effect is to reduce
organic proportionate mobile revenue growth in the quarter by approximately 2%.
3G sales continue to develop in line with expectations, with 1.3 million net
additions in the quarter. This brings the closing total at the end of June to
9.1 million, including 8.2 million consumer devices. 3G net additions in the
quarter are over 90% higher than recorded in the same quarter last year. Data
revenue growth for the Group's mobile businesses in the quarter was 40.2%
compared with the same quarter last year. In continuing to improve the service
offering, 3G Broadband through HSDPA is now available in 8 of the Group's
markets bringing enhanced data speeds to customers, with an initial focus on
business users.
Overall, these key performance indicators are in line with the Group's
expectations for the full year. The Group anticipates continued investment in
customers together with ongoing operating cost management and therefore expects
the full year proportionate mobile EBITDA margin to be around 1 percentage point
lower than the previous financial year on an organic basis.
Europe
The European region recorded 891,000 proportionate organic net customer
additions in the quarter, bringing the total proportionate base to 94.1 million.
Registered 3G devices increased by 1.2 million to 8.7 million.
Total revenue growth was 0.5%, with 2.0% organic growth in mobile service
revenue. Service revenue growth has reduced across many markets in the quarter
due to the timing of Easter. Underlying trends for service revenue, excluding
the impact from changes in termination rates and seasonal effects, were similar
to the quarter to March in Italy, with a slight improvement in Germany and the
UK, and continued strong performance in Spain.
The Group's cost initiatives remain on track. In IT application, development and
maintenance, Vodafone expects to sign master service agreements with two vendors
before the end of the calendar year and the consolidation of data centres is
ahead of schedule. The centralisation of network supply chain management is also
progressing well with benefits expected in the second half of the current
financial year.
Germany
The German market remains competitive, with net customer additions of 253,000 in
the quarter, increasing closing customers to 29.4 million. An additional 312,000
3G devices were registered during the quarter, taking the closing base to
2,337,000. Vodafone Germany now has 894,000 Vodafone Zuhause customers, adding
446,000 customers during the quarter.
Annualised blended churn for the quarter increased to 20.7% from 17.3% for the
same quarter last year, mainly as a result of the increase in prepaid churn from
21.1% to 26.0% due to the disconnection of inactive customers arising from
increased competition in the market.
Blended ARPU for the quarter was 9.0% lower than the same quarter last year due
to termination rate cuts in December 2005 and higher prepaid inactivity due to
competitive pressures, partially offset by strong growth in data revenue. Total
voice usage increased 19.8% compared with the same quarter last year due to the
success of usage stimulation initiatives.
Service revenue declined 2.9% compared with the same period last year, as the
increase in the customer base was more than offset by the reduction in
termination rates and other factors affecting ARPU, with a decline in voice
revenue of 5.1%. Excluding termination rate cuts, underlying service revenue was
broadly stable when compared with the same quarter last year. Data revenue
increased by 43.5% as a result of increased penetration of 3G devices and the
success of data services including Mobile TV and music, with Vodafone Germany
maintaining its position as the leading mobile operator for full track music
downloads. Messaging revenue declined 4.7% due to the impact of increased voice,
and reduced messaging, promotional activities and revised tariffs for some
machine to machine services in the quarter.
Increased gross additions and increased investment in retention activities,
targeted at higher value customers, led to net acquisition and retention costs
as a percentage of service revenue being slightly higher than the same quarter
last year.
Italy
The Italian market continues to be highly competitive, with Vodafone Italy
registering 69,000 proportionate net customer additions in the quarter, taking
the total proportionate base to 18.6 million. Closing proportionate 3G devices
increased by 207,000 to 2,457,000. Vodafone Casa, a tariff option targeted at
substituting fixed line voice usage for mobile, was successfully launched in the
quarter with the strong take up being ahead of expectations.
Annualised blended churn for the quarter rose to 20.8% from 17.3% for the same
quarter last year, largely driven by prepaid churn increasing from 17.5% to
21.1%. This was due to the disconnection of inactive customers driven by an
increase in multiple SIMs arising from competitive pressures.
Blended ARPU for the quarter decreased by 9.2% compared with the same quarter
last year, principally as a result of a reduction in termination rates which
took effect from 1 September 2005, together with the impact from a higher level
of promotional activity, a fall in activity rates as a result of competitive
pressures and higher penetration. A number of promotions stimulated underlying
total voice usage, which increased by 7.1% compared with the same quarter last
year.
Service revenue declined by 3.4% compared with the same quarter last year as the
reduction in termination rates and other factors impacting ARPU more than offset
growth in the customer base, with voice revenue declining by 5.9%. Excluding the
termination rate cut, underlying service revenue grew by 2.3%. Messaging revenue
increased by 7.3%, benefiting from the success of promotions in the quarter, and
data revenue grew by 22.4%, following the increased penetration of 3G devices
and data promotions.
Net acquisition and retention costs as a percentage of service revenue for the
quarter was broadly stable compared with the same period last year, with an
increase in the cost per acquisition and upgrade due to the focus on higher
value customers offset by a reduction in upgrade volumes.
Spain
The Group continues to perform strongly in Spain, adding a further 428,000
customers in the current quarter. This represented growth in the closing
customer base of 17.8% since 30 June 2005, increasing the total customer base to
13.9 million. A strong and successful focus on attracting contract customers led
to 95.2% of the net additions in the quarter being contract customers,
increasing the proportion of contract customers in the base to 51%. Vodafone
also continued to be a leader in the 3G market in Spain, with an increase of
320,000 in the number of registered 3G devices to 1,222,000 in the quarter.
Annualised blended churn for the quarter fell by 1.2 percentage points to 20.5%
compared with the same quarter last year. This resulted from a decrease in
contract churn to 12.3% reflecting the success of the competitive tariffs and
promotions launched during the year and increased upgrade activity. Prepaid
churn was stable compared with the same quarter last year.
Blended ARPU for the current quarter decreased by 2.5% compared with the same
quarter last year, driven by the termination rate reduction in November 2005,
pricing pressures in the market and the impact of lower spending new customers.
Voice usage increased by 23.5% compared with the same quarter last year assisted
by new tariffs and promotions launched during the year and the higher average
customer base.
Service revenue grew by 15.1% compared with the same quarter last year,
primarily due to the growth in the customer base, partially offset by the impact
of termination rate reductions. Excluding the termination rate cut, underlying
service revenue grew by 17.3%. Voice revenue increased by 12.5% compared with
the same quarter last year with increased voice usage offset by lower ARPU.
Messaging revenue grew by 14.6% reflecting the higher average customer base and
data revenue increased by 62.8%, which benefited from specific promotions and
the increased 3G customer base.
Net acquisition and retention costs as a percentage of service revenue increased
in the quarter compared with the same quarter last year due to the increased
level of contract additions.
UK
The UK market continues to be extremely competitive, with Vodafone experiencing
a decline in the customer base of 119,000 in the current quarter. This comprised
29,000 net additions for contract customers and a decline in prepaid customers
of 148,000. Registered 3G devices increased by 18.9% during the quarter to a
closing base of 1,228,000.
Annualised blended churn for the quarter has remained stable compared with the
same quarter in the previous year at 32.8%. Contract churn has fallen by 3.1
percentage points to 20.1% due to customer relationship management activities
and an increasing proportion of customers signing up for 18 month contracts.
Prepaid churn increased, primarily as a result of the impact of customer
self-upgrades.
Blended ARPU for the quarter decreased by 3.7% compared with the same quarter
last year, driven primarily by higher inactivity rates in prepaid and lower
voice ARPU, partially offset by increased data ARPU. The lower voice ARPU was
driven by the launch of promotions and propositions such as Stop the Clock,
which successfully contributed to voice usage growth of 5.8%.
Service revenue growth was 1.3% compared with the same quarter last year. This
was achieved mainly by increases in the average customer base and data revenue,
offset by lower voice ARPU. Voice revenue declined very slightly compared to the
same quarter last year as a result of lower voice ARPU, partially compensated
for by the increased average customer base. Messaging revenue increased 6.6%
following the increase in the average customer base and the uptake of messaging
add-on bundles. Data revenue increased by 16.7% compared with the same quarter
last year, resulting from the increase in 3G registered devices and related
services, particularly for business customers where Vodafone continues to
demonstrate clear market leadership.
On 1 July, the UK enhanced the competitiveness of its prepaid service with the
launch of its Free Weekends offer, which rewards higher than average voice and
text usage.
Net acquisition and retention costs as a percentage of service revenue fell this
quarter compared with the same quarter last year, due to fewer gross additions
generated at lower unit costs and fewer upgrades.
Other European Operations
The Group's other European subsidiaries added 260,000 proportionate net
additions, including 162,000 in Greece. Service revenue increased by 8.0% in
Greece and 5.8% in Portugal compared with the same quarter last year, with
stable service revenue in Ireland and a 2.0% decline in the Netherlands due to
competitive pressures. The Group's other European subsidiaries represent
approximately 14% of Group total revenue for the quarter ended 30 June 2006.
EMAPA
Vodafone's emerging market operations continue to perform well with strong
performance in Romania, Egypt and South Africa.
Organic proportionate net additions of 3,647,000 were recorded for the EMAPA
region, representing annualised quarterly growth in customers of 18.9%, with a
further 11.7 million added through the acquisition of Telsim in Turkey. The
total proportionate base increased to 92.7 million by the end of June,
representing 49.6% of the Group's total proportionate base.
Total revenue growth was 62.2%, with 19.7% organic growth in mobile service
revenue.
Subsidiaries
The Group's EMAPA subsidiaries added 974,000 net proportionate organic customers
in the quarter. Strong performances were recorded in Egypt and Romania. The
Group's newly acquired operation in Turkey has performed ahead of expectations
since December and has registered 381,000 net additions in the period from
acquisition on 24 May 2006 to the end of June.
Organic mobile service revenue growth for the quarter was 20.6% compared with
the same quarter last year.
In Egypt, service revenue increased by 38.6% driven by strong customer growth.
Blended ARPU has decreased primarily due to a greater proportion of prepaid
customers in the base.
Service revenue growth of 31.7% in Romania and 16.7% in Australia was
principally driven by an increase in the average customer base compared to the
same quarter last year. ARPU also improved in these countries compared with the
same quarter last year due to a focus on higher value customers in Australia
and higher prepaid ARPU in Romania due to increased data usage.
In the Czech Republic, where market penetration is over 100%, Vodafone's closing
customer base is 16% higher than a year ago with ARPU only slightly lower due to
continued focus on contract customers. Service revenue was broadly stable
compared to the same quarter last year in New Zealand, due to the impact of
increased competition and significant reductions in termination rates.
Joint Ventures
The Group's other joint ventures in the EMAPA region reported 1,377,000
proportionate organic net customer additions in the quarter with 761,000
proportionate net additions from Vodacom, the Group's joint venture in South
Africa.
Organic mobile service revenue growth for the quarter was 18.4% compared with
the same quarter last year, including growth of 19.8% in South Africa driven by
strong customer growth. The Group's joint venture in India, Bharti Airtel, will
report results for the quarter to June on 26 July.
Associates and investments
The Group's associates and investments added 1,296,000 proportionate organic
customers in the quarter.
Verizon Wireless registered net additions of over 1.8 million in the quarter
with the Group's proportionate share at 807,000. Verizon Communications will be
reporting its interim results and those of Verizon Wireless on 1 August. Vivendi
will be reporting its first half 2006 revenue and those of SFR on 27 July and
interim results on 7 September.
New Businesses
In its presentation to investors and analysts on 30 May, the Group outlined its
plans for developing new and additional revenue streams, particularly in its
more mature markets where penetration is already over 100%. The New Businesses
unit was, therefore, established to deliver new communications services to
customers that address the converging areas of mobile, broadband and the
internet. The Group's initial focus in this area is on extending Vodafone's
service offerings in the home and at the office to meet customers growing voice
and broadband needs, including the provision of DSL, through a mobile centric
approach.
The first market to launch home based services was Germany through its Vodafone
Zuhause proposition. With 894,000 registered customers by the end of June,
Vodafone Germany is in the process of adding DSL as a complementary service. The
second key market to offer home based services is Italy, which launched Vodafone
Casa in May and initial take up has been strong.
The Group expects to begin to offer similar services in the majority of its
European markets during this financial year and several announcements are
planned for the months ahead.
- ends -
For further information:
Vodafone Group
Investor Relations Media Relations
Telephone: +44 (0) 1635 664447 Telephone: +44 (0) 1635 664444
Notes to editors:
1. The Group's outlook for the financial year ending 31 March 2007 is
contained in Vodafone's preliminary results announcement for the year ended
31 March 2006. This press release contains forward-looking statements which
are subject to risks and uncertainties because they relate to future events.
Some of the factors which may cause actual results to differ from these
forward-looking statements can be found by referring to the information
contained under the headings 'Cautionary Statement Regarding Forward-Looking
Statements' and 'Risk Factors' in Vodafone Group Plc's Annual Report for the
year ended 31 March 2006. The Annual Report can be found on our website
(www.vodafone.com).
2. At the country level, service revenue growth is calculated in local
currency and before the elimination of intercompany revenue. For Romania and
South Africa, this calculation also assumes the Group's increased equity
interest is reflected in the whole of the current quarter and the same
quarter last year. The basis of calculation for organic growth is included in
the Group's Annual Report for the year ended 31 March 2006.
3. Certain revenue relating to content delivered by SMS and MMS has been
reclassified from messaging revenue to data revenue. All prior period results
have been adjusted accordingly.
4. Vodafone, Vodafone live!, Vodafone Zuhause, Vodafone Casa and Stop the Clock
are trademarks of the Vodafone Group.
5. References in this press release to 'June' and 'March' shall, unless the
context requires otherwise, be deemed to be references to 30 June 2006 and
31 March 2006 respectively.
6. In April 2006, the Group announced changes to the organisational structure of
its operations, effective from 1 May 2006. The results above are presented in
accordance with this new organisation structure and all prior period results
have been restated accordingly.
KEY PERFORMANCE INDICATORS
MOBILE TELECOMMUNICATIONS BUSINESSES
PROPORTIONATE CUSTOMERS - 1 APRIL 2006 TO 30 JUNE 2006
-------------------------------------------------------------------------------
COUNTRY PERCENTAGE AT 31 NET OTHER AT 30
OWNERSHIP MARCH 2006 ADDITIONS MOVEMENTS JUNE 2006 PREPAID
(1) (2) (3)
(%) ('000s) ('000s) ('000s) ('000s) (%)
-------------------------------------------------------------------------------
Europe:
Germany 100.0% 29,191 253 - 29,444 53.4
Italy 76.9% 18,490 69 - 18,559 92.1
Spain 100.0% 13,521 428 - 13,949 49.0
UK 100.0% 16,304 (119) - 16,185 60.6
Albania 99.9% 772 19 - 791 96.8
Greece 99.9% 4,471 162 3 4,636 67.2
Ireland 100.0% 2,075 15 - 2,090 73.9
Malta 100.0% 175 2 - 177 89.7
Netherlands 99.9% 3,909 (28) - 3,881 51.8
Portugal 100.0% 4,276 90 - 4,366 79.6
-----------------------------------------------------
Total Europe 93,184 891 3 94,078 65.9
EMAPA:(4)
Subsidiaries:
Australia 100.0% 3,177 (37) - 3,140 73.6
Czech Republic 100.0% 2,214 49 - 2,263 47.0
Egypt 50.1% 3,314 237 - 3,551 90.8
Hungary 100.0% 2,063 (39) - 2,024 66.6
New Zealand 100.0% 2,068 32 - 2,100 77.1
Romania 100.0% 6,384 351 - 6,735 65.9
Turkey 100.0% - 381 11,665 12,046 89.9
-----------------------------------------------------
19,220 974 11,665 31,859 79.2
Joint Ventures:
South Africa(5) 50.0% 10,968 761 25 11,754 89.7
Other 5,357 616 - 5,973 78.8
-----------------------------------------------------
16,325 1,377 25 17,727 83.1
Affiliates:
United States(5) 44.4% 23,530 807 4 24,341 5.5
Other 18,312 489 - 18,801 74.0
-----------------------------------------------------
Total 41,842 1,296 4 43,142 63.4
-----------------------------------------------------
Total EMAPA 77,387 3,647 11,694 92,728 67.4
-----------------------------------------------------
Total 170,571 4,538 11,697 186,806 67.1
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(1) All ownership percentages are stated as at 30 June 2006 and exclude
options, warrants or other rights or obligations of the Group to increase
or decrease ownership in any venture with the exception of India, where
the Group's 10% economic interest represents a 5.6% direct interest in
Bharti Airtel Limited and a subscription for convertible debentures in
Bharti Enterprises Private Limited, representing a 4.4% indirect economic
interest in Bharti Airtel Limited. Ownership interests have been rounded
to the nearest tenth of one percent.
(2) Other movements for the quarter to 30 June 2006 represent the acquisition
of minority interests in Vodafone Greece, Vodafone Albania, the
acquisition of substantially all the assets and business of Telsim Mobil
Telekomunikasyon Hizmetleri in Turkey and the indirect acquisition of a
0.1% interest in Vodacom Group (Pty) Limited in South Africa.
(3) Prepaid customer percentages are calculated on a venture basis. At 30
June 2006, there were 553.0 million venture customers.
(4) EMAPA covers Eastern Europe, Middle East, Africa, Asia Pacific and
Affiliates.
(5) Customers in South Africa refers to the Group's interests in Vodacom
Group (Pty) Limited and includes customers in South Africa, the Democratic
Republic of Congo, Lesotho, Mozambique and Tanzania. Net additions for the
quarter to 30 June 2006 includes 0.2 million proportionate customer
disconnections in South Africa during the period resulting from a change
in the definition of an active customer to exclude calls forwarded to
voicemail from the definition of a revenue generating activity.
(6) The Group's ownership interest in Verizon Wireless is 45.0%. However, 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 2006. 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.
MOBILE TELECOMMUNICATIONS BUSINESSES
VODAFONE LIVE! ACTIVE DEVICES
-------------------------------------------------------------------------------
COUNTRY AT 31 NET AT 30
MARCH 2006 ADDITIONS JUNE 2006
('000s) ('000s) ('000s)
-------------------------------------------------------------------------------
Europe:
Germany 6,214 (20) 6,194
Italy(1) 4,097 246 4,343
Spain 5,514 537 6,051
UK 4,181 195 4,376
Other 4,229 404 4,633
---------------------------------------------
Total Europe 24,235 1,362 25,597
Total EMAPA 2,835 761 3,596
---------------------------------------------
Group Statutory Total(2) 27,070 2,123 29,193
-------------------------------------------------------------------------------
(1) Under IFRS, Vodafone Italy is treated as a joint venture. The figures in
the table above represent the Group's share of Vodafone live! active
devices.
(2) The table above only includes Vodafone live! customers in the Group's
subsidiary and joint venture undertakings. At 30 June 2006, there were an
additional 6.5 million registered Vodafone live! venture customers in the
Group's associated undertakings.
3G DEVICES
-------------------------------------------------------------------------------
COUNTRY AT 31 NET AT 30
MARCH 2006 ADDITIONS JUNE 2006
('000s) ('000s) ('000s)
-------------------------------------------------------------------------------
Europe:
Germany 2,025 312 2,337
Italy(1) 2,250 207 2,457
Spain 902 320 1,222
UK 1,033 195 1,228
Other 1,230 176 1,406
---------------------------------------------
Total Europe 7,440 1,210 8,650
Total EMAPA 281 120 401
---------------------------------------------
Group Statutory Total(2) 7,721 1,330 9,051
---------------------------------------------
Consumer devices 7,061 1,178 8,239
Business devices 660 152 812
---------------------------------------------
7,721 1,330 9,051
-------------------------------------------------------------------------------
(1) Under IFRS, Vodafone Italy is treated as a joint venture. The figures in
the table above represent the Group's share of 3G devices.
(2) The table above only includes 3G devices in the Group's subsidiary and
joint venture undertakings. At 30 June 2006, there were an additional 2.0
million Vodafone live! with 3G and Vodafone Mobile Connect 3G/GPRS data
card devices in the Group's associated undertakings.
MOBILE TELECOMMUNICATIONS BUSINESSES
AVERAGE MONTHLY REVENUE PER USER IN THE QUARTER
-------------------------------------------------------------------------------
COUNTRY 30 30 31 31 30
JUNE SEPTEMBER DECEMBER MARCH JUNE
2005 2005 2005 2006 2006
-------------------------------------------------------------------------------
Europe:
-------------------------------------------------------------------------------
Germany Total 24.3 24.4 22.9 21.5 22.1
(EUR) Contract 39.8 41.0 38.8 37.2 38.4
Prepaid 9.2 9.0 8.3 7.5 7.6
-------------------------------------------------------------------------------
Italy Total 30.4 29.9 27.7 26.4 27.6
(EUR) Contract 79.4 75.0 73.7 71.0 72.6
Prepaid 25.8 25.9 23.5 22.2 23.3
-------------------------------------------------------------------------------
Spain Total 36.2 37.7 35.3 33.3 35.3
(EUR) Contract 58.5 60.7 56.3 52.8 54.8
Prepaid 15.4 16.2 15.0 13.9 15.0
-------------------------------------------------------------------------------
UK Total 24.6 25.1 23.8 22.7 23.7
(GBP) Contract 46.5 47.9 44.8 43.9 45.2
Prepaid 9.5 9.9 9.5 8.8 8.9
-------------------------------------------------------------------------------
Albania Total 2,255 2,534 2,259 2,098 2,122
(ALL) Contract 18,783 19,815 18,499 16,777 17,240
Prepaid 1,680 1,936 1,701 1,593 1,606
-------------------------------------------------------------------------------
Greece Total 32.2 34.2 31.3 29.8 31.1
(EUR) Contract 65.1 69.7 64.2 61.5 65.6
Prepaid 15.1 15.7 14.1 13.4 13.7
-------------------------------------------------------------------------------
Ireland Total 51.4 53.1 50.2 48.6 48.8
(EUR) Contract 101.9 107.8 99.9 99.3 102.8
Prepaid 32.1 32.6 31.6 30.0 29.3
-------------------------------------------------------------------------------
Malta Total 14.0 16.2 13.0 12.1 14.7
(MTL) Contract 74.6 91.4 61.8 54.4 72.3
Prepaid 7.4 7.8 7.3 6.9 7.4
-------------------------------------------------------------------------------
Netherlands Total 37.1 36.6 34.5 33.6 35.7
(EUR) Contract 69.5 68.6 64.7 61.3 63.5
Prepaid 11.3 11.0 9.8 9.2 10.1
-------------------------------------------------------------------------------
Portugal Total 26.4 27.1 24.0 23.3 23.5
(EUR) Contract 67.3 69.8 61.9 62.4 62.2
Prepaid 14.3 14.7 13.4 12.9 13.0
-------------------------------------------------------------------------------
EMAPA Subsidiaries (1):
-------------------------------------------------------------------------------
Australia Total 47.8 48.2 51.4 47.9 49.4
(AUD) Contract 92.8 93.6 94.3 92.0 92.7
Prepaid 26.7 31.1 35.0 32.0 33.9
-------------------------------------------------------------------------------
Czech
Republic Total 680 679 679 644 674
(CZK) Contract 1,029 1,017 1,015 951 978
Prepaid 340 342 337 311 331
-------------------------------------------------------------------------------
Egypt Total 91.4 89.4 74.1 79.0 79.4
(EGP) Contract 268.6 283.9 274.1 289.3 292.1
Prepaid 60.7 62.4 52.0 56.0 57.1
-------------------------------------------------------------------------------
Hungary Total 5,321 5,153 4,885 4,647 5,066
(HUF) Contract 11,302 11,264 9,666 8,809 9,129
Prepaid 3,391 3,046 3,043 2,887 3,125
-------------------------------------------------------------------------------
New Zealand Total 50.7 51.0 51.2 51.2 46.6
(NZD) Contract 138.9 139.7 137.2 138.5 126.1
Prepaid 25.9 25.6 25.9 25.7 23.2
-------------------------------------------------------------------------------
Romania Total 14.9 15.9 15.4 13.9 15.2
(USD) Contract 30.2 31.1 29.5 27.0 29.5
Prepaid 6.3 7.1 7.0 6.0 6.7
-------------------------------------------------------------------------------
(1) On 24 May 2006, the Group acquired substantially all the assets and
business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a
result, the Group expects to report Turkey's average monthly revenue per
user in the quarter with effect from the quarter ended 30 September 2006.
MOBILE TELECOMMUNICATIONS BUSINESSES
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE
-------------------------------------------------------------------------------
QUARTER TO 30 JUNE 2006
-------------------------------------------------
COUNTRY MESSAGING DATA TOTAL
-------------------------------------------------
Germany 14.5% 6.7% 21.2%
Italy(1) 12.7% 4.6% 17.3%
Spain 8.9% 6.8% 15.7%
UK 15.4% 5.5% 20.9%
Group Statutory Total(2) 12.5% 4.9% 17.4%
-------------------------------------------------------------------------------
HISTORIC NON-VOICE SERVICES INFORMATION
-------------------------------------------------------------------------------
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE IN
THE QUARTER TO
----------------------------------------------------------
COUNTRY 30 30 31 31 30
JUNE SEPTEMBER DECEMBER MARCH JUNE
2005 2005 2005 2006 2006
----------------------------------------------------------
Germany 19.3% 19.5% 20.4% 21.7% 21.2%
Italy(1) 14.9% 16.8% 17.4% 18.0% 17.3%
Spain 13.7% 14.2% 14.8% 15.1% 15.7%
UK 19.3% 19.7% 20.7% 21.3% 20.9%
Group Statutory Total 16.2% 16.6% 17.2% 17.8% 17.4%
-------------------------------------------------------------------------------
(1) Under IFRS, Vodafone Italy is treated as a joint venture.
(2) With effect from the quarter ended 30 June 2006, data revenues have been
adjusted to include messaging content revenues which had previously been
included in messaging. The impact for the quarter ended 30 June 2006 is to
increase the total Group data revenue as a percentage of service revenue
by 1.0% to 4.9% and to reduce the total Group messaging revenue as a
percentage of service revenue by 1.0% to 12.5%.
MOBILE TELECOMMUNICATIONS BUSINESSES
CUSTOMER CHURN
-------------------------------------------------------------------------------
ANNUALISED CHURN INFORMATION IN THE QUARTER TO
----------------------------------------------------------
COUNTRY 30 30 31 31 30
JUNE SEPTEMBER DECEMBER MARCH JUNE
2005 2005 2005 2006 2006
----------------------------------------------------------
Germany Total 17.3% 19.7% 21.2% 22.6% 20.7%
Contract 13.1% 14.3% 16.8% 16.7% 14.6%
Prepaid 21.1% 24.6% 25.2% 27.7% 26.0%
-------------------------------------------------------------------------------
Italy Total 17.3% 18.7% 19.1% 19.5% 20.8%
Contract 14.9% 14.5% 16.6% 14.5% 17.2%
Prepaid 17.5% 19.1% 19.3% 19.9% 21.1%
-------------------------------------------------------------------------------
Spain Total 21.7% 20.7% 20.6% 20.6% 20.5%
Contract 13.6% 12.5% 13.9% 14.1% 12.3%
Prepaid 29.0% 28.1% 26.9% 26.9% 28.9%
-------------------------------------------------------------------------------
UK Total 32.4% 33.1% 31.9% 31.2% 32.8%
Contract 23.2% 21.6% 20.2% 21.2% 20.1%
Prepaid 38.3% 40.5% 39.5% 37.5% 40.9%
-------------------------------------------------------------------------------
ACTIVE CUSTOMERS
-------------------------------------------------------------------------------
ACTIVE CUSTOMERS(1) AT
----------------------------------------------------------
COUNTRY 30 30 31 31 30
JUNE SEPTEMBER DECEMBER MARCH JUNE
2005 2005 2005 2006 2006
----------------------------------------------------------
Germany 93.0% 92.8% 91.5% 90.6% 90.6%
Italy(2) 92.2% 92.8% 92.1% 91.2% 90.9%
Spain 94.8% 95.0% 95.7% 94.3% 93.8%
UK 88.8% 90.6% 90.8% 88.4% 85.7%
Group Statutory Total(1) 91.3% 92.2% 92.1% 91.6% 91.4%
-------------------------------------------------------------------------------
(1) An active customer is defined as one who either pays a monthly fee or has
made or received a chargeable event in the last 3 months. The Group's
joint ventures in India and Kenya are currently unable to measure active
customers under this basis and so have been excluded from the calculation
of the Group Statutory Total activity percentages in the table above.
(2) Under IFRS, Vodafone Italy is treated as a joint venture.
MOBILE TELECOMMUNICATIONS BUSINESSES
VOICE USAGE VOLUMES
-------------------------------------------------------------------------------
TOTAL VOICE MINUTES(1) (MILLIONS) IN THE QUARTER TO
----------------------------------------------------------
COUNTRY 30 30 31 31 30
JUNE SEPTEMBER DECEMBER MARCH JUNE
2005 2005 2005 2006 2006
----------------------------------------------------------
Europe:
Germany 6,356 6,428 7,010 6,993 7,614
Italy(2) 7,173 7,164 7,521 7,746 7,687
Spain 5,648 5,859 5,966 6,362 6,978
UK 6,810 6,937 7,167 7,145 7,207
Albania 129 144 141 135 148
Greece 1,757 1,896 1,870 1,869 2,075
Ireland 1,263 1,279 1,302 1,289 1,380
Malta 42 47 43 43 49
Netherlands 1,697 1,601 1,755 1,733 1,820
Portugal 1,319 1,384 1,386 1,402 1,472
Sweden 688 681 753 - -
----------------------------------------------------------
Total Europe 32,882 33,420 34,914 34,717 36,430
EMAPA:
Subsidiaries
Australia 1,619 1,818 1,957 2,001 2,006
Czech Republic(3) 289 840 899 925 901
Egypt 1,979 2,341 2,278 2,442 2,869
Hungary 741 792 842 866 948
New Zealand 540 559 616 602 597
Romania(3) 525 1,754 1,931 1,914 1,873
----------------------------------------------------------
5,693 8,104 8,523 8,750 9,194
Joint Ventures 2,021 1,957 2,598 4,684 5,763
----------------------------------------------------------
TOTAL EMAPA 7,714 10,061 11,121 13,434 14,957
----------------------------------------------------------
Group Statutory Total(4) 40,596 43,481 46,035 48,151 51,387
-------------------------------------------------------------------------------
(1) The total voice minute information presented in the table above
represents the volume of minutes handled by each local network and
includes incoming, outgoing and visitor calls. The voice minute
information in respect of the Czech Republic, Germany, New Zealand and
Romania reflects minutes billed which are rounded-up under certain
tariffs.
(2) Under IFRS, Vodafone Italy is treated as a joint venture. The figures in
the table above represent the Group's share of the voice minute
information.
(3) MobiFon S.A. in Romania and Oskar Mobil a.s. in the Czech Republic became
subsidiaries on 31 May 2005. Voice minutes in the quarter to 30 June 2005
only include volumes during the month of June 2005. Prior to 31 May 2005,
MobiFon S.A. was treated as a joint venture and was previously included
within Other Joint Ventures.
(4) On 24 May 2006, the Group acquired substantially all the assets and
business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a
result, the Group expects to report Turkey's voice usage volumes with
effect from the quarter ended 30 September 2006.
This information is provided by RNS
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