Key Performance Indicators
Vodafone Group Plc
25 July 2005
25 July 2005
VODAFONE REACHES 165 MILLION PROPORTIONATE CUSTOMERS
Vodafone Group Plc ('Vodafone') announces today key performance indicators,
presented under IFRS, for the quarter ended 30 June 2005. The main highlights
are:
• Organic growth of 8.6% in proportionate mobile revenues year on year
• Strong growth in customers with over 4.1 million organic net additions,
35% higher than for the same period last year
• Total proportionate customer base now over 165 million, representing
organic growth of 12.3% year on year, and including an additional 6 million
customers added in Romania and the Czech Republic through the closing of the
TIW transaction
• Additional 1.1 million registered 3G devices, including 1 million
consumer 3G devices. Total 3G devices now at 3.3 million, with 2.9 million
consumer 3G devices
• Vodafone continuing to differentiate with the launch of several new
propositions, including Vodafone Simply and Vodafone Travel Promise
• Over 1.3 billion shares repurchased in the financial year to date at a cost
of £1.9 billion
Arun Sarin, Chief Executive of Vodafone, commented:
'We have seen strong performances across Europe and in the US, and we continue
to focus on improving our business in Japan. 3G is building momentum with over
one million more registered devices in the quarter.
Vodafone has delivered another impressive quarter of customer growth, with 4.1
million organic net additions. Our proportionate customer base, now over 165
million, has seen organic growth of 12.3% from a year ago. Proportionate mobile
revenues were also strong and delivered 8.6% organic growth year on year.
Overall these KPIs are in line with our expectations and we are therefore
reiterating our guidance for the full year to March 2006.'
Germany
Vodafone Germany delivered a quarter of strong customer growth with 497,000 net
additions, taking the total base to 27.7 million, 8.8% higher year on year.
Blended annual churn was stable compared to that at March, with a small
improvement in contract offset by a slight increase in prepaid.
Blended annual ARPU for the year to June was €295 compared to €299 for the year
to March. The impact of lower spending new customers, as well as the effect of
termination rate reductions, continues to offset ARPU increases from minute
bundle plans and new services.
Strong customer growth was the primary driver behind the 4.1% increase in
service revenue for the quarter compared to the same quarter last year.
Non-voice service revenue increased by 11.7% year on year, including an 83%
increase in non-messaging data revenue, with Vodafone live! users increasing to
5.2 million and registered 3G devices exceeding 0.5 million.
Net acquisition and retention costs as a percentage of service revenue in the
quarter were lower than the same period last year and the quarter to March due
to a higher proportion of lower spending, and therefore lower subsidy, customer
additions.
Italy
Proportionate net customer additions were 204,000 in the quarter. The total
proportionate customer base was 17.5 million at the end of June, 6.4% higher
year on year on an organic basis. Blended annual ARPU increased to €360 for the
year to June compared to €359 for the year to March. Annual churn increased
slightly when compared to March.
Service revenue for the quarter increased 6.5% compared to the same period last
year, with continued customer growth being the primary driver. Non-voice service
revenue increased by 18.4% year on year, including 50.7% growth in non-messaging
data revenue. Successful promotions and further penetration of Vodafone live!
users, now at 2.5 million on a proportionate basis, have contributed to this
growth. Of the Group's European operations, Vodafone Italy has the highest
number of 3G devices registered on its network at over 0.7 million on a
proportionate basis.
Net acquisition and retention costs as a percentage of service revenue in the
quarter were higher than the same period last year and the quarter to March,
reflecting the increase in competitive activity in the Italian market and a
particular focus on attracting and retaining high value customers. However,
these costs still remain at very low levels when compared to the rest of the
Group.
United Kingdom
Vodafone UK regained momentum in the quarter with 165,000 net customers added,
taking the total base to 15.5 million customers, an increase of 8.9% year on
year. Annual churn increased slightly compared to March, driven in large part by
an increase in prepaid churn. Blended annual ARPU reduced to £300 from £306 for
the year to June compared to the year to March, principally due to the impact of
the reduction in incoming call termination rates.
The growth in average customers was substantially offset by the fall in ARPU
resulting in service revenue growth of 0.6% for the quarter when compared to the
same quarter last year. Excluding the effect of the reduction in termination
rates, service revenue grew by 4.5%. Non-voice service revenue increased by
11.9% year on year, including a 50.7% increase in non-messaging data revenue.
Vodafone live!, with users now at 3.7 million, and Vodafone Mobile Connect were
the drivers behind this strong growth.
Net acquisition and retention costs as a percentage of service revenue in the
quarter were higher than the same period last year and the quarter to March due
to increased customer growth and upgrade activity.
Japan
The closing proportionate customer base in Japan was 14.6 million. Vodafone
Japan recorded positive net additions of 5,000 in June, but a net reduction of
72,000 for the quarter. Annual churn levels fell slightly compared to March,
benefiting from the continued investment in customer retention activities and
the introduction of new price plans and promotions.
Blended annual ARPU fell to Y73,034 for the year to June from Y73,780 for the
year to March, reflecting the competition in the market. The rate of ARPU
decline has reduced, driven by an improving mix of customers who have been
acquired compared to those who have churned.
Service revenue for the quarter decreased by 4.1% compared to the same quarter
last year, primarily due to the fall in ARPU. Non-voice service revenue was
stable year on year, having declined in each quarter of the previous financial
year. This was primarily due to the increasing 3G customer base, with higher
data usage, that has reached nearly 1.2 million.
Net acquisition and retention costs as a percentage of service revenue in the
period were higher than the same quarter last year but were lower than in the
quarter to March. This is primarily due to retention costs being higher year on
year, albeit at a lower level than the prior quarter.
Spain
Vodafone Spain continued to perform very strongly, adding a further 368,000 net
customers in the quarter to June. At the end of June, the total customer base
stood at 11.8 million customers, an increase of 18.9% year on year. The
proportion of contract customers in the base continues to increase and churn has
improved both quarter on quarter and year on year.
Blended annual ARPU increased to €421 for the year to June from €414 for to the
year to March, benefiting from the focus on high value customers.
The strong growth in customers and ARPU generated service revenue growth of
26.2% year on year. Service revenue growth has now exceeded 20% year on year for
six successive quarters. Voice revenues increased by 24% year on year, driven by
an improving customer mix and higher usage. Non-voice service revenue increased
by 42.1% year on year, with messaging revenue increasing by over 30% and
non-messaging data revenue more than doubling.
Vodafone live! users increased by over 500,000 in the quarter to reach a total
of 3.5 million, representing the highest penetration, as a percentage of total
customers, of Vodafone live! in the Group.
Notwithstanding the continued strong growth and focus on high value customers,
net acquisition and retention costs as a percentage of service revenue in the
period were lower than both the same quarter last year and the quarter to March.
Other Mobile Operations
The Group has 13 other subsidiaries, which increased from 11 at March with the
inclusion of Romania and the Czech Republic.
MobiFon in Romania increased its venture customer base to over 5.2 million in
the quarter, more than 28% higher year on year. In the Czech Republic, Oskar
increased its venture customer base to more than 1.9 million, representing
growth of over 16% year on year.
On a proportionate basis, the Group's other subsidiaries delivered organic
growth in customers of 14.8% and in service revenue of 6.7%, with particularly
strong service revenue performances in Egypt and Hungary, both growing in excess
of 20%, and New Zealand which recorded double digit growth.
Vodacom in South Africa produced proportionate net additions of 574,000,
bringing the proportionate closing base to 5.7 million, over 35% higher year on
year on an organic basis. Vodacom launched Vodafone live! with 3G in April.
Verizon Wireless recorded net additions of over 1.9 million, the highest level
since its formation in April 2000, with the Group's proportionate share at
850,000.
In France, the Group's proportionate share of SFR's customer base increased to
7.1 million, representing organic growth of 8% year on year. On a proportionate
basis, SFR has 1.3 million registered Vodafone live! customers and over 130,000
Vodafone live! with 3G registered devices.
- ends -
For further information:
Vodafone Group
Simon Lewis, Group Corporate Affairs Director
Tel: +44 (0) 1635 673310
Investor Relations Media Relations
Charles Butterworth Bobby Leach
Darren Jones Ben Padovan
Sarah Moriarty
Tel: +44 (0) 1635 673310 Tel: +44 (0) 1635 673310
Notes to editors
(1) The guidance for the year to March 2006 is contained in Vodafone's
Preliminary Results Announcement for the year ended 31 March 2005 in which
there is a discussion of forward-looking statements and the risks associated
with them.
(2) At the country level, service revenue growth is calculated in local currency
and before the elimination of intercompany revenue. At the Group and Other
Mobile Operations levels, service revenue growth is calculated at constant
exchange rates and after the elimination of intercompany revenue.
(3) Vodafone, Vodafone live!, Vodafone Simply and Vodafone Mobile Connect are
trademarks of the Vodafone Group.
(4) References in this press release to 'June' and 'March' shall, unless the
context requires otherwise, be deemed to be references to 30 June 2005 and
31 March 2005 respectively.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
PROPORTIONATE CUSTOMERS - 1 APRIL 2005 TO 30 JUNE 2005
---------------------------------------------------------------------------------------------
COUNTRY PERCENTAGE AT 1 APRIL NET OTHER AT 30 JUNE PREPAID(3)
OWNERSHIP(1) 2005 ADDITIONS MOVEMENTS(2) 2005
(%) ('000s) ('000s) ('000s) ('000s) (%)
---------------------------------------------------------------------------------------------
Principal Markets
Germany 100.0% 27,223 497 - 27,720 52%
Italy(2)(5) 76.9% 17,280 204 15 17,499 92%
Japan 97.7% 14,692 (72) - 14,620 11%
Spain 100.0% 11,472 368 - 11,840 52%
UK 100.0% 15,324 165 - 15,489 61%
-------------------------------------------------
85,991 1,162 15 87,168
Other Subsidiaries
Albania 99.9% 648 22 - 670 97%
Australia 100.0% 2,731 160 - 2,891 71%
Czech
Republic(2) 99.9% - 19 1,930 1,949 50%
Egypt 50.1% 2,072 183 - 2,255 86%
Greece 99.8% 3,996 164 - 4,160 66%
Hungary 100.0% 1,735 62 - 1,797 75%
Ireland 100.0% 1,952 29 - 1,981 73%
Malta 100.0% 167 3 - 170 90%
Netherlands 99.9% 3,789 71 - 3,860 56%
New Zealand 100.0% 1,891 38 - 1,929 78%
Portugal 100.0% 3,586 77 - 3,663 78%
Romania(2) 99.1% - 105 5,098 5,203 65%
Sweden 100.0% 1,541 (17) - 1,524 37%
-------------------------------------------------
24,108 916 7,028 32,052
Other Joint Ventures
Fiji 49.0% 76 4 - 80 93%
Kenya 35.0% 879 97 - 976 98%
Poland 19.6% 1,443 102 - 1,545 54%
Romania(2) - 1,010 - (1,010) - -
South
Africa 35.0% 5,087 574 - 5,661 88%
-------------------------------------------------
8,495 777 (1,010) 8,262
Associates & Investments
Belgium 25.0% 1,073 4 - 1,077 60%
China 3.3% 6,994 324 - 7,318 73%
France 43.9% 7,011 90 - 7,101 45%
Switzerland 25.0% 993 15 - 1,008 37%
United
States(2)(4) 44.4% 20,173 850 2 21,025 5%
-------------------------------------------------
36,244 1,283 2 37,529
TOTAL 154,838 4,138 6,035 165,011 61%
(1) All ownership percentages are stated as at 30 June 2005 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.
(2) Other movements for the quarter to 30 June 2005 represents a stake increase
of 0.1% in Vodafone Italy from 76.8% to 76.9%, the acquisition of 99.9% of
the share capital of Oskar Mobil a.s. in the Czech Republic, the acquisition
of local network operators by Verizon Wireless and a stake increase of 79.0%
in MobiFon S.A. in Romania from 20.1% to 99.1%. At 1 April 2005,
MobiFon S.A. was a joint venture and, following the stake increase, is now
a subsidiary.
(3) Prepaid customer percentages are calculated on a venture basis. At 30 June
2005, there were 450.9 million total venture customers.
(4) The Group's ownership 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 2005. 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.
(5) Under IFRS, Vodafone Italy is treated as a joint venture.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
VODAFONE LIVE! ACTIVE DEVICES
------------------------------------------------------------------------------
COUNTRY AT 1 APRIL 2005 NET ADDITIONS AT 30 JUNE 2005
('000s) ('000s) ('000s)
------------------------------------------------------------------------------
Principal Markets
Germany 4,845 344 5,189
Italy(1) 2,113 432 2,545
Japan 12,845 (67) 12,778
Spain 2,992 519 3,511
UK 3,443 295 3,738
-----------------------------------------------
26,238 1,523 27,761
Other Subsidiaries
and Joint Ventures 3,988 638 4,626
-----------------------------------------------
Group Statutory
Total(1) 30,226 2,161 32,387
The table above only includes Vodafone live! customers in the Group's subsidiary
and joint venture undertakings. There were an additional 3.8 million registered
Vodafone live! venture customers in our associated undertakings at 30 June 2005
(31 March 2005: 3.2 million).
(1) The Group previously reported 30,864,000 Vodafone live! active devices at 31
March 2005. Under IFRS, Vodafone Italy is now treated as a joint venture in
which the Group had a 76.8% ownership interest at 31 March 2005. The figures in
the table above represent the Group's pro-rata share of Vodafone live! active
devices in Vodafone Italy. This has resulted in a reduction to the comparative
figure at 1 April 2005 of 638,000 compared to the figure previously reported.
The Group's other joint ventures did not offer the Vodafone live! service at 31
March 2005.
3G DEVICES
------------------------------------------------------------------------------
COUNTRY AT 1 APRIL 2005 NET ADDITIONS AT 30 JUNE 2005
('000s) ('000s) ('000s)
------------------------------------------------------------------------------
Principal Markets
Germany 358 170 528
Italy(1) 511 209 720
Japan(2) 798 371 1,169
Spain 88 72 160
UK 190 92 282
----------------------------------------------
1,945 914 2,859
Other Subsidiaries
and Joint Ventures 253 146 399
----------------------------------------------
Group Statutory
Total(1) 2,198 1,060 3,258
(1) The Group previously reported 2,352,000 3G devices at 31 March 2005. Under
IFRS, Vodafone Italy is now treated as a joint venture in which the Group
had a 76.8% ownership interest at 31 March 2005. The figures in the table
above represent the Group's pro-rata share of 3G devices in Vodafone Italy.
This has resulted in a reduction to the comparative figure at 1 April 2005
of 154,000 compared to the figure previously reported. The Group's other
joint ventures did not have any 3G devices at 31 March 2005.
(2) The number of 3G devices in Japan reported in the table above excludes
130,000 devices (31 March 2005: 119,000) which use the 3G network but are
not capable of accessing 3G data services.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
MONTHLY REGISTERED BLENDED ARPU FOR THE 15 MONTHS TO 30 JUNE 2005
-------------------------------------------------------------------------------
COUNTRY Apr May Jun Jul Aug Sep Oct Nov
2004 2004 2004 2004 2004 2004 2004 2004
-------------------------------------------------------------------------------
Germany EUR 25.0 25.5 25.8 26.4 25.9 25.7 25.5 24.6
Italy(1) EUR 29.9 30.1 30.8 31.0 29.6 30.2 30.3 28.9
Japan JPY 6,300 6,150 6,150 6,470 6,380 6,210 6,280 5,970
Spain EUR 32.9 33.9 35.4 38.5 36.4 35.2 34.8 32.6
UK GBP 25.3 27.8 26.8 27.3 26.8 25.8 25.6 24.6
----------------------------------------------------------------------
COUNTRY Dec Jan Feb Mar Apr May Jun
2004 2005 2005 2005 2005 2005 2005
----------------------------------------------------------------------
Germany EUR 24.5 23.7 21.9 24.5 24.0 24.4 24.6
Italy(1) EUR 31.2 29.2 27.1 30.9 29.4 30.8 30.9
Japan JPY 6,200 5,870 5,650 6,140 5,970 5,940 5,940
Spain EUR 35.1 33.6 31.4 34.9 34.8 36.2 37.4
UK GBP 24.4 24.1 22.9 25.4 24.4 24.5 24.9
ARPU INFORMATION FOR THE 12 MONTH PERIOD TO 30 JUNE 2005
-------------------------------------------------------------------------------
COUNTRY CURRENCY REGISTERED REGISTERED REGISTERED
PREPAID CONTRACT TOTAL
-------------------------------------------------------------------------------
Principal Markets
Germany EUR 115 477 295
Italy(1) EUR 306 921 360
Japan JPY 30,253 77,573 73,034
Spain EUR 183 690 421
UK GBP 121 559 300
Other Subsidiaries
Albania ALL 19,659 287,283 28,236
Australia AUD 320 1,054 595
Czech Republic CZK 3,952 11,881 7,723
Egypt EGP 785 3,142 1,188
Greece EUR 195 785 394
Hungary HUF 39,866 139,615 62,484
Ireland EUR 379 1,199 609
Malta MTL 91 877 166
Netherlands EUR 141 841 447
New Zealand NZD 326 1,726 625
Portugal EUR 187 704 326
Romania USD 67 330 167
Sweden SEK 678 5,509 3,759
HISTORIC ARPU INFORMATION
TOTAL ARPU FOR THE 12 MONTH PERIOD TO
-------------------------------------------------------
COUNTRY 30 JUNE 30 SEPTEMBER 31 DECEMBER 31 MARCH 30 JUNE
2004(2) 2004(2) 2004(2) 2005(2) 2005
------------------------------------------------------------------------------
Principal Markets
Germany EUR 309 305 303 299 295
Italy(1) EUR 362 360 360 359 360
UK GBP 314 318 314 306 300
Japan JPY 78,365 76,590 75,133 73,780 73,034
Spain EUR 389 400 408 414 421
(1) Under IFRS, Vodafone Italy is treated as a joint venture.
(2) There are no changes to the comparative ARPU figures calculated in
accordance with IFRS and those previously reported under UK GAAP.
VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE
12 MONTH PERIOD TO 30 JUNE 2005
-------------------------------------------------
COUNTRY MESSAGING DATA TOTAL
------------------------------------------------------------------------------
Principal Markets
Germany 14.9% 3.5% 18.4%
Italy 13.2% 1.8% 15.0%
Japan 6.5% 15.3% 21.8%
Spain 11.6% 2.4% 14.0%
UK 15.4% 3.5% 18.9%
Group Statutory Total 12.1% 4.8% 16.9%
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE - HISTORY
12 MONTH PERIOD TO
---------------------------------------------------------
COUNTRY 30 JUNE 30 SEPTEMBER 31 DECEMBER 31 MARCH 30 JUNE
2004(1) 2004(1) 2004(1) 2005(1) 2005
-------------------------------------------------------------------------------
Principal Markets
Germany 17.4% 17.6% 17.7% 18.1% 18.4%
Italy 13.5% 14.1% 14.4% 14.6% 15.0%
Japan 21.9% 21.8% 21.4% 21.5% 21.8%
Spain 11.8% 12.4% 13.1% 13.7% 14.0%
UK 16.6% 17.3% 17.9% 18.4% 18.9%
Group Statutory
Total(1) 16.0% 16.3% 16.4% 16.7% 16.9%
(1) Comparative Group Statutory Total figures have been restated to reflect the
change from UK GAAP to IFRS at 30 June 2004, 30 September 2004, 31 December
2004 and 31 March 2005 from 16.3%, 16.5%, 16.7% and 17.0% to 16.0%, 16.3%,
16.4% and 16.7%, respectively.
ACTIVE CUSTOMER INFORMATION
ACTIVE CUSTOMERS AT
---------------------------------------------------------
COUNTRY 30 JUNE 30 SEPTEMBER 31 DECEMBER 31 MARCH 30 JUNE
2004(2) 2004(2) 2004(2) 2005(2) 2005
-------------------------------------------------------------------------------
Principal Markets
Germany 93% 92% 92% 91% 90%
Italy 92% 92% 92% 92% 92%
Japan 97% 97% 97% 96% 97%
Spain 97% 92% 92% 93% 93%
UK 91% 91% 90% 89% 89%
Group Statutory
Total(1)(2) 93% 92% 92% 92% 91%
(1) An active customer is defined as one who has made or received a chargeable
event in the last 3 months. The Group's joint venture in Kenya and its
subsidiary in the Czech Republic 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) Comparative Group Statutory Total figures have been restated to reflect the
change from UK GAAP to IFRS. The only impact of the change has been to
decrease the Group Statutory Total active customer percentage at
30 September 2004 by 1%.
This information is provided by RNS
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