Key Performance Indicators

Vodafone Group PLC 25 April 2002 25 April 2002 CUSTOMER GROWTH EXCEEDED 20% FOR THE YEAR; ARPU LEVELS SUSTAINED; IMPROVED DATA REVENUE GROWTH Vodafone Group Plc ('Vodafone') today announces key performance indicators for the quarter and year ended 31 March 2002. The main highlights are: • Good customer growth of 22% in the year, resulting in over 101.1m proportionate customers with 1.3m net additions in the last quarter • Stable blended average revenue per user ('ARPU') trends maintained in major European markets in the quarter and during the 12 months ended March 2002 despite two Easter periods in the year • Data revenue rose to over 13% of service revenues for the Group's controlled operations in March and to over 11% for the year, an increase of over 4% and 3% respectively on a year ago Sir Christopher Gent, Chief Executive of Vodafone, commented: 'This year has seen ARPU stabilise in our major markets, ahead of our previous expectations, even though customer growth has been better than anticipated. The improvement in mix towards higher quality customers and the continued adoption of data services provide a solid base for an expected improvement in ARPU in most of our major European markets in the year ahead.' Customer Growth Overall, 1.3 million registered proportionate customers were added in the quarter bringing the total net additions for the year to more than 18.1 million. Net customer growth in the quarter was held back in part by seasonal factors but mainly due to the necessary and expected disconnection in some major European markets of non-revenue earning handsets associated with the upgrading that occurred in the period of very rapid customer growth in the previous financial year. We expect the return of net customer growth in all major European markets in the second quarter of this financial year. The overall customer mix continues to improve following the revised commercial policies, particularly in Germany and the UK, with contract rising from 40% to 43% of the base and 35% to 38% respectively. Activity levels for the Group's controlled operations improved from 90% last quarter to 92% this quarter, primarily due to the expected increase in prepaid churn in Germany, the UK now measuring activity on an outgoing and incoming basis and the inclusion of Japan where activity levels are over 99%. In Germany activity improved from 90.6% to 91.2%. Registered Blended ARPU Registered blended ARPU trends were maintained in the Group's major markets in the quarter. On a rolling 12 month basis, allowing for two Easters in one year, ARPU was stable. Data as a Percentage of Service Revenues Data as a percentage of service revenues continues to grow on a like-for-like basis exceeding 11% in the year to March and 13% in the month of March for the Group's controlled operations. Improvements in data usage were recorded in all major markets on an annual basis. In Japan the success of 'sha-mail', the photo-messaging service, continues. This is now used by one third of the base and contributes to the highest levels of data adoption in the Group. Furthermore, 'movie sha-mail' has registered more than 115,000 customers in the first month following launch. For further information: Vodafone Group Tim Brown, Group Corporate Affairs Director Melissa Stimpson, Head of Group Investor Relations Bobby Leach, Head of Group Financial Media Relations Darren Jones, Senior Investor Relations Manager Tel: +44 (0) 1635 673310 Tavistock Communications Lulu Bridges / John West Tel: +44 (0) 20 7600 2288 Notes Monthly and annual ARPU in Japan has been adjusted to take into account a 13% reduction in mobile to mobile interconnect effective for the year ended 31 March 2002. This release contains forward looking statements including statements regarding our expectations for improvement in ARPU and future customer growth. By their nature, forward looking statements are inherently predictive, speculative and involve risk and uncertainty since they relate to events and depend on circumstances that will occur in the future. Actual results could differ materially from those expressed or implied by these forward looking statements depending on a variety of factors including our ability to develop competitive data content and services which will attract new customers and increase average usage, our ability to offer new services and the delivery and performance of GPRS and 3G handsets, network equipment and other key products from suppliers, and the other factors set forth in our Annual Report on Form 20-F under the headings 'Forward-looking Statements' and 'Risk Factors'. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES QUARTERLY PROPORTIONATE NET CUSTOMER ADDITIONS - 1 JANUARY 2002 TO 31 MARCH 2002 CUSTOMER BASE PERCENTAGE AT START NET STAKE AT END OF PERCENTAGE COUNTRY OPERATOR OWNERSHIP 1 OF PERIOD ADDITIONS CHANGES 2 PERIOD PREPAID 4 (%) (thousands) (thousands) (thousands) (thousands) (%) NORTHERN EUROPE UK Vodafone 100.0 13,164 22 - 13,186 62 Ireland Vodafone 100.0 1,701 3 - 1,704 72 Netherlands Vodafone 70.0 2,262 27 - 2,289 64 Sweden Vodafone 71.1 788 * - * * Others 4,946 * 1 * * TOTAL 22,861 144 1 23,006 57 CENTRAL EUROPE Germany Vodafone 99.7 21,824 (399) 9 21,434 57 Hungary Vodafone 59.4 283 47 - 330 91 Others 1,519 48 - 1,567 41 TOTAL 23,626 (304) 9 23,331 54 SOUTHERN EUROPE Greece Vodafone 51.9 1,523 43 (27) 1,539 72 Italy Omnitel Vodafone 76.6 13,335 219 6 13,560 91 Malta Vodafone 80.0 115 7 - 122 92 Portugal Vodafone 50.9 1,418 * - * * Spain Vodafone 91.6 6,995 246 - 7,241 55 Albania Vodafone 76.9 91 39 - 130 99 Others 404 * - * * TOTAL 23,881 615 (21) 24,475 78 AMERICAS United Verizon States Wireless 3 44.2 12,993 88 - 13,081 6 Others 641 48 - 689 81 TOTAL 13,634 136 - 13,770 11 ASIA PACIFIC Japan J-Phone Vodafone 69.7 8,108 388 - 8,496 4 Australia Vodafone 95.5 2,026 24 - 2,050 37 New Zealand Vodafone 100.0 1,044 51 - 1,095 78 Others 1,584 101 - 1,685 54 TOTAL 12,762 564 - 13,326 47 MIDDLE EAST AND AFRICA Egypt Vodafone 60.0 961 70 - 1,031 87 Others 2,133 105 (41) 2,197 84 TOTAL 3,094 175 (41) 3,228 85 GROUP TOTAL 99,858 1,330 (52) 101,136 50 1 All ownership percentages are stated as of 31 March 2002 and exclude options, warrants or other rights or obligations of Vodafone Group Plc to increase or decrease ownership in any venture. Ownership interests have been rounded to the nearest tenth of one percent. 2 Represents the acquisition of certain minority interests in Vodafone AG (formerly Mannesmann AG) during the period, the reduction in ownership in Panafon S.A. following its increased participation in Mobitel and the reduction in ownership in Safaricom Ltd following the exercise of an option. 3 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 98.3%. In the absence of acquired interests, this proportionate ownership will vary slightly from quarter to quarter dependent on the underlying mix of net additions across each of these networks. 4 Prepaid customer percentages are calculated on a venture basis. * Listed subsidiary still to report VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES CONTROLLED ACTIVE CUSTOMER INFORMATION AS AT 31 MARCH 2002 CONTROLLED ACTIVE 1 CONTROLLED COUNTRY OPERATOR PREPAID CONTRACT TOTAL INACTIVE (%) (%) (%) (%) NORTHERN EUROPE UK Vodafone 84 98 89 11 Ireland Vodafone 99 98 99 1 Netherlands Vodafone 88 99 92 8 Sweden Vodafone (a) * * * * TOTAL 86 97 90 10 CENTRAL EUROPE Germany Vodafone 89 94 91 9 Hungary Vodafone (a) 91 97 92 8 TOTAL 89 94 91 9 SOUTHERN EUROPE Greece Vodafone (a) 71 90 76 24 Italy Omnitel Vodafone 94 92 93 7 Malta Vodafone 92 99 93 7 Portugal Vodafone * * * * Spain Vodafone 86 94 89 11 Albania Vodafone 2 N/A N/A N/A N/A TOTAL 89 94 90 10 ASIA PACIFIC Japan J-Phone Vodafone 2 N/A N/A 99 1 Australia Vodafone 90 95 93 7 New Zealand Vodafone 95 100 96 4 TOTAL 93 95 98 2 MIDDLE EAST AND AFRICA Egypt Vodafone (a) 96 96 96 4 TOTAL 96 96 96 4 CONTROLLED GROUP TOTAL 89 95 92 8 1 Active customers are defined as customers who have made or received a chargeable event in the last three months or, where information is not available, defined as customers who have made a chargeable event in the last three months (indicated by (a)). 2 No customer activity information is presently available in Albania, where network services commenced in August 2001. In Japan, customer activity information is only presently available on a total customer basis. * Listed subsidiary still to report. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES MONTHLY REGISTERED BLENDED ARPU FOR THE 15 MONTHS TO 31 MARCH 2002 Country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Germany EUR 27 24 27 24 25 25 26 26 25 26 24 24 25 23 25 Italy 1 EUR 28 25 30 28 29 30 31 30 28 29 27 28 29 26 30 Japan 2 JPY 8,100 8,600 7,200 8,100 7,600 7,700 7,500 8,100 7,800 7,400 7,800 7,600 7,500 7,200 7,600 United GBP 24 23 24 22 24 23 23 24 23 24 23 22 23 22 24 Kingdom 1 ARPU INFORMATION FOR THE 12 MONTH PERIOD TO 31 MARCH 2002 ARPU 3 COUNTRY OPERATOR LOCAL REGISTERED REGISTERED REGISTERED CURRENCY PREPAID CONTRACT TOTAL NORTHERN EUROPE UK Vodafone 1 GBP 118 555 276 Netherlands Vodafone EUR * * * Sweden Vodafone SEK * * * CENTRAL EUROPE Germany Vodafone EUR 110 559 298 Hungary Vodafone HUF 37,895 198,069 53,417 SOUTHERN EUROPE Greece Vodafone EUR * * * Italy Omnitel Vodafone 1 EUR 297 769 345 Malta Vodafone MTL 94 913 170 Portugal Vodafone EUR * * * Spain Vodafone EUR 148 639 371 ASIA PACIFIC Japan J-Phone Vodafone JPY N/A N/A 91,903 Australia Vodafone 1 AUD 331 877 688 New Zealand Vodafone NZD 287 1,812 636 MIDDLE EAST AND AFRICA Egypt Vodafone 1 EGP 807 3,068 1,079 1. Prior to the current quarter, monthly and annual ARPU for the UK, Italy, Australia and Egypt were slightly understated compared to other Group operators due to the exclusion of certain distributor discounts on prepaid top-up cards from prepaid customer revenues. The impact on these operators of the alignment to the Group's methodology of basing prepaid customer revenues on the face value of top-up cards has been to increase the previously disclosed registered total ARPU for the 12 months to 31 December 2001 as set out in the table below. In addition, as a result of the UK and Egypt now analysing incoming calls for activity purposes, incoming interconnect revenue is now able to be more accurately attributed to prepaid and contract revenue, substantially accounting for the revisions to 12 month contract and prepaid ARPU to December 2001 detailed below. RESTATED ARPU FOR THE 12 MONTH PERIOD TO 31 DECEMBER 2001 COUNTRY LOCAL REGISTERED REGISTERED REGISTERED CURRENCY PREPAID CONTRACT TOTAL UK GBP 125 552 278 Italy EUR 298 763 345 Australia AUD 342 880 701 Egypt EGP 939 2,958 1,192 2. J-Phone monthly and annual ARPU have been rephased to reflect the impact of a 13% reduction to mobile-to-mobile inter-operator connection fees, effective March 2002 and applicable in arrears for the period from April 2001 to March 2002. The impact of this rephasing has been to reduce previously disclosed registered ARPU for the 12 months to 31 December 2001 from Yen 94,331 to Yen 93,550. 3. ARPU is calculated for the 12 month period to 31 March 2002 and excludes handset revenues and connection fees. * Listed subsidiary still to report. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES PROPORTIONATE BASIS 12 MONTHS TO 31 MARCH 2002 MARCH 2002 (MONTH ONLY) COUNTRY OPERATOR MESSAGING INTERNET TOTAL MESSAGING INTERNET TOTAL DATA DATA DATA DATA DATA DATA NORTHERN EUROPE UK Vodafone 1 10.6% 1.2% 11.8% 12.3% 1.1% 13.4% Others 6.3% 0.2% 6.5% 7.8% 0.3% 8.1% TOTAL 8.8% 0.8% 9.6% 10.4% 0.8% 11.2% CENTRAL EUROPE Germany Vodafone 13.9% 0.5% 14.4% 14.5% 0.7% 15.2% Others 6.8% 0.4% 7.2% 7.4% 0.5% 7.9% TOTAL 13.0% 0.5% 13.5% 13.6% 0.7% 14.3% SOUTHERN EUROPE Italy Omnitel Vodafone 1 8.5% 0.2% 8.7% 9.5% 0.3% 9.8% Others 7.6% 0.1% 7.7% 8.0% 0.1% 8.1% TOTAL 8.1% 0.2% 8.3% 8.8% 0.2% 9.0% AMERICAS United States Verizon Wireless 0.1% 0.5% 0.6% 0.1% 0.5% 0.6% Others - - - - - - TOTAL 0.1% 0.5% 0.6% 0.1% 0.5% 0.6% ASIA PACIFIC Japan J-Phone Vodafone 2 5.6% 9.5% 15.1% 6.6% 13.2% 19.8% Others 6.1% 0.3% 6.4% 7.6% 0.4% 8.0% TOTAL 5.7% 7.6% 13.3% 6.8% 10.8% 17.6% MIDDLE EAST AND AFRICA 3.3% 0.1% 3.4% 3.7% 0.1% 3.8% PROPORTIONATE GROUP TOTAL 3 7.0% 1.7% 8.7% 7.9% 2.4% 10.3% STATUTORY BASIS CONTROLLED GROUP TOTAL 3 9.5% 1.6% 11.1% 9.8% 3.7% 13.5% 1 Prior to the current quarter, monthly and annual data percentages for the UK and Italy were slightly overstated compared to other Group operators due to the exclusion of certain distributor discounts on prepaid top-up cards from prepaid customer revenues. The impact on these operators of the alignment to the Group's methodology of basing prepaid customer revenues on the face value of top-up cards has been to reduce the December 2001 reported annual total data percentages for the UK and Italy from 10.1% and 8.2% to 10.1% and 7.9% respectively and the December 2001 monthly total data percentages from 12.9% and 11.1% to 12.7% and 10.7% respectively. 2 With effect from the quarter ended 31 March 2002, J-Phone has allocated bundled airtime for the year to 31 March 2002 between voice, messaging and internet data revenues on the basis of actual usage, having previously included all such bundled airtime in voice revenues. In addition, J-Phone monthly and annual ARPU have been rephased to reflect the impact of a 13% reduction to mobile-to-mobile inter-operator connection fees, effective March 2002 and applicable in arrears for the period from April 2001 to March 2002. The annual and monthly percentages for December 2001 on this new basis were 13.4% and 16.0% respectively compared to the previously reported 12.3% and 13.8% respectively. 3 The impact of the changes in (1) and (2) above on the previously reported Group percentages were to increase the proportionate Group total annual and monthly percentages from 7.8% and 9.3% to 8.0% and 9.7% respectively and to increase the statutory controlled Group total annual and monthly percentages from 10.1% and 12.2% to 10.2% and 12.7% respectively. This information is provided by RNS The company news service from the London Stock Exchange
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