Key Performance Indicators
Vodafone Group Plc
31 January 2007
31 January 2007
VODAFONE REACHES 200 MILLION CUSTOMERS
Vodafone Group Plc ('Vodafone') today announces key performance indicators for
the quarter ended 31 December 2006. The main highlights are:
* Organic growth of 6.1% for the quarter in proportionate mobile revenue,
with proportionate growth of 0.9% in Europe and 14.4% in EMAPA. Nine months
year to date organic growth in proportionate mobile revenue of 6.1%
* On a statutory basis, growth in total revenue for the quarter was 5.1%,
with organic service revenue growth of 4.8%
* 8.7 million proportionate organic net mobile additions for the quarter.
Total proportionate mobile customer base at 198.6 million at the end of the
quarter after a net reduction of 1.7 million mobile customers from other
movements, principally business disposals
* Total proportionate mobile customer base over 200 million by the end of
January
* 2.5 million 3G devices added, bringing total 3G device base to 13.6
million. 3G Broadband through HSDPA available across 21 of the Group's
markets and partner networks
* Completed disposal of interests in Proximus and Swisscom Mobile with net
proceeds of £3.1 billion
* Continued execution on revenue stimulation and total communications
objectives with Vodafone At Home now launched in seven markets, including
five offering DSL services, and Vodafone Office available in 11 markets
* Execution of core cost reduction programmes, including IT outsourcing,
data centre consolidation, supply chain management and network sharing, all
on track
* Vodafone re-iterates its current year outlook with the financial
performance for the quarter and year to date in line with expectations
Arun Sarin, Chief Executive, commented:
'These KPIs are very much in line with expectations and show that we are
continuing to make progress in executing our strategy. I am also pleased to
announce today that we now have 200 million proportionate customers globally and
we are grateful for their confidence in us. This is both an important milestone
for Vodafone and a great achievement by our people.'
GROUP REVIEW
Operating review
----------------
There was no significant change in the competitive environment in the quarter
with Europe remaining challenging and the EMAPA region continuing to present a
significant opportunity for growth. The quarter showed continued strong
performances from Spain, Verizon Wireless and several of the Group's emerging
market operations. Underlying growth trends improved slightly in Italy and the
UK, however Germany showed an expected negative impact from tariff changes
introduced in October.
Strong customer growth was recorded across many markets with organic
proportionate net mobile additions of 8.7 million. This growth reflects both
seasonally high net additions in Europe, particularly in prepaid, and the
benefits of lower average market penetration in EMAPA. The closing proportionate
customer base of 198.6 million is over 20% higher than the same quarter in the
previous year. With 2.5 million net additions in the quarter, 3G customers
reached 13.6 million, including 1.3 million with business devices. HSDPA is
available in 21 of the Group's markets and partner networks.
Organic proportionate mobile revenue growth for the quarter was 6.1% compared
with the same quarter in the previous year, with organic growth for the nine
months to 31 December 2006 also 6.1%. Changes in termination rates are estimated
to have reduced organic proportionate mobile revenue growth in the quarter by
around 1.6%.
On a statutory basis, total revenue for the quarter increased by 5.1% with
organic service revenue growth for the quarter of 4.8%. Voice revenue increased
by 2.6% on an organic basis, with a 20.3% organic increase in total voice usage,
and organic growth in messaging revenue was 6.2%. Data revenue grew by 34.2%
organically, primarily from business services and the increasing penetration of
3G devices.
Revenue stimulation and cost reduction in Europe
------------------------------------------------
The Group continues to execute on its strategy of driving fixed to mobile
substitution and delivering on the total communications needs of its customers.
Vodafone At Home and Vodafone Office products and services are now available in
five and eight markets respectively in Europe. In Germany, registered Vodafone
Zuhause customers reached two million in January, with successful promotions in
Italy increasing active Vodafone Casa customers to 0.6 million at the end of the
quarter.
Progress on several major cost reduction initiatives in Europe has been
announced recently, principally relating to the outsourcing of IT application
development and maintenance, data centre consolidation, supply chain management
and a business transformation programme to implement a single, integrated
operating model using one ERP system. These multi-year initiatives are now well
under way and are expected to deliver significant benefits in the medium term.
The Group continues to review opportunities for network sharing to reduce the
total cost of network ownership. During the quarter, the Group announced network
sharing arrangements for 2G and 3G in rural areas of Spain, following on from
previous announcements of an agreement in Australia and of an ongoing review in
the Czech Republic, both within the EMAPA region.
As a result, for the total of the Europe region (excluding Arcor) and common
functions, the Group continues to expect capitalised fixed asset additions to be
10% of revenue in the year ending 31 March 2008 and operating expenses to be
broadly stable for that year compared with the year ending 31 March 2006 on an
organic basis, excluding the potential impact from developing and delivering new
services and from any business restructuring costs.
Delivering strong growth in emerging markets
--------------------------------------------
Strong growth in the Group's emerging market operations continued in the quarter
with organic service revenue growth of 29.7% in Romania, 42.0% in Egypt and
22.6% in South Africa, with customer growth remaining the principal driver. The
Group's recent acquisition in Turkey continues to see strong growth in revenue
driven by the execution of a turnaround plan outlined at the EMAPA Analyst and
Investor day in December.
Innovate and deliver on our customers' total communications needs
-----------------------------------------------------------------
HSDPA deployment continues on a fast track basis with the expectation of
achieving coverage in Europe equivalent to the Group's existing 3G coverage by
the middle of the 2007 calendar year.
Complementary to its mobile broadband service offerings, the Group continues to
develop its presence in the home and the office through the deployment of DSL
services. With the exception of Arcor in Germany, the provision of DSL services
to date has been on a wholesale basis. The Group continues to look at the most
efficient ways to deliver broadband services to customers and will take a
country by country approach dependent on the differing operating conditions in
any given market.
Actively manage our portfolio to maximise returns
-------------------------------------------------
As well as completing the sale of its 25% interest in Proximus to Belgacom, the
Group announced and completed the sale of its 25% interest in Swisscom Mobile to
Swisscom during the quarter. The sale consideration of approximately £1.8
billion for the Swisscom Mobile interest implied an Enterprise Value to EBITDA
multiple of 9.1x for the financial year ending 31 March 2007. In both instances,
the Board considered that the Group was not the most appropriate holder of a
minority interest in the longer term and, together with an attractive valuation,
determined that capital would be better deployed elsewhere.
The Group also announced the acquisition of a further 4.8% in Vodafone Egypt,
bringing its total ownership to 54.9% and increasing the Group's exposure to
this high growth market.
In December, the Group announced that it is considering the acquisition of a
controlling interest in Hutchison Essar Limited in India. This potential
opportunity is in line with its objective of obtaining control of a mobile
company in the important Indian market. The Board remains committed to only
pursuing transactions that create value for shareholders and that meet the
Group's stated financial investment criteria.
Outlook
-------
The Group is reiterating its outlook statement for the year ending 31 March
2007. Organic growth in proportionate mobile revenue is expected to be in the
range of 5% to 6.5%. The proportionate mobile EBITDA margin is expected to be
around 1 percentage point lower than the year ending 31 March 2006 on an organic
basis, excluding the impact of any one-off business restructuring costs.
Capitalised fixed asset additions are anticipated to be in the range of £4.2
billion to £4.6 billion with free cash flow in the range of £4.7 billion to £5.2
billion, after £0.5 billion of tax payments and associated interest in respect
of the settlement of a number of long standing tax issues and after the impact
of lower expected dividends from associates due to the disposal of interests in
Proximus and Swisscom Mobile.
EUROPE
A summary of organic change in customers, usage and revenue for the quarter
ended 31 December 2006 compared to the same quarter in the previous year is set
out below:
--------------------------------------------------------------------------------
Germany Italy Spain UK Arcor Other Europe
Organic change(1) % % % % % % %
--------------------------------------------------------------------------------
Closing mobile
proportionate
customers(2) 5.0 10.6 11.9 3.8 n/a 7.5 7.3
Mobile voice usage(2) 23.4 9.8 28.3 13.9 n/a 11.4 17.0
Service revenue(3) (4.3) 1.7 12.7 2.6 9.7 (2.7) 2.1
Underlying service
revenue(3)(4) (0.5) 4.9 18.1 3.3 9.7 4.7 5.8
--------------------------------------------------------------------------------
Notes:
(1) The percentage movements in organic growth are presented to reflect
operating performance on a comparable basis, adjusting for acquisitions and
disposals and exchange rate movements
(2) Excludes the effect of the disposal in Sweden
(3) Excludes the effect of the disposal in Sweden and exchange rate
movements
(4) Excludes the estimated impact of termination rate reductions and from
adjustments to revenue for certain arrangements that are now presented
net of associated direct costs
Customers
---------
The Europe region recorded 3.2 million proportionate organic net customer
additions compared to 2.7 million in the same quarter in the previous year. Net
additions were strong across the Group's major markets with 0.7 million in
Germany, 0.8 million in Italy, 0.4 million in Spain and 0.7 million in the UK,
partly reflecting seasonally high prepaid activity. In particular, the UK
benefited from more competitive offerings during the period and Italy from new
commercial initiatives introduced in the summer. The total proportionate base
reached 98.8 million compared with 93.7 million at the end of the same quarter
in the previous year.
Annualised contract churn has fallen year on year in most of the major markets
within the Europe region due to continued focus on targeted customer retention
activities. Increased competition and the ongoing effect of customer
self-upgrades and SIM only promotions has resulted in higher annualised prepaid
churn year on year in many markets although prepaid churn reduced year on year
in Germany due to a regulatory driven change in disconnection policy. As a
result, the Group remains focused on maintaining prepaid customer acquisition
costs at low levels.
Usage
-----
Total voice usage increased by 17.0% on an organic basis compared with the same
quarter in the previous year mainly due to outgoing call volumes increasing by
22.1%. This was driven by an increase in the customer base within the region and
an increase in outgoing minutes per customer, particularly in Germany, Spain and
the UK.
Voice usage growth in Germany and Spain remained strong due to usage stimulation
tariffs and promotions that are particularly focused on encouraging calls to
other Vodafone numbers and fixed lines. In the UK, a significant increase in
outgoing voice usage per customer resulted from a prepaid offering that provides
free weekend calls if customers spend a minimum amount during weekdays, with 1.7
million prepaid customers opting into this plan. Italy recorded continued growth
in total voice usage although at a lower level than the previous quarter due to
the strong success of its summer promotion.
Revenue
-------
Organic service revenue growth of 2.1% for the quarter was driven by the
increase in the customer base and total usage per customer, partially offset by
pricing pressures in many of the markets within the Europe region and the effect
of termination rate reductions. Organic growth in service revenue for the
quarter to 30 September 2006 was 1.0%. The improvement in the current quarter
was largely due to Italy, which recorded service revenue growth of 1.7% compared
to a decline of 3.4% in the previous quarter, principally due to a lower impact
from termination rate reductions.
Voice revenue decreased by 0.5% on an organic basis compared with the same
quarter in the prior year. Outgoing voice revenue increased by 2.7% organically,
with growth in voice minutes largely offset by price declines. Incoming voice
revenue declined by 6.6% on an organic basis, principally due to a 23.4% decline
in incoming revenue in Germany as a result of regulated termination rate
reductions in December 2005 and November 2006. This was the primary reason for
an overall decline in voice revenue in Germany.
The Europe region recorded a 3.7% organic increase in messaging revenue in the
quarter principally due to increases of 17.1% and 13.9% in Spain and the UK
respectively, where the larger customer bases and competitively priced offerings
stimulated higher usage. Successful usage stimulation in Italy improved the rate
of increase year on year in messaging revenue to 7.3% compared to the previous
quarter growth of 2.6%, which was also impacted by the strong summer voice
promotion. Messaging revenue in Germany has been affected by the strong growth
in voice usage which, together with the timing of messaging promotions,
contributed to the decline compared with the same quarter in the previous year.
Data revenue increased by 32.2% on an organic basis, primarily due to growth in
business services and increasing penetration of 3G devices. Registered 3G
devices increased by 6.9 million from the same period in the previous year to
12.5 million as at 31 December 2006. In particular, Germany experienced growth
in data revenue of 57.7%, both from consumer services through Vodafone live! and
from increased business connectivity.
Underlying organic service revenue growth of 5.8% was broadly stable compared
with the previous quarter. The UK delivered underlying improvements from
continued leadership in the business segment and more competitive market
offerings. Italy also improved as a result of new commercial initiatives
introduced in the first half of the current financial year. As expected, Germany
started to show a negative impact from tariff changes in October, resulting in a
year on year decline in underlying service revenue of 0.5%, compared with growth
of 0.8% in the previous quarter. Whilst underlying growth in Spain remains
strong, the lower rate of growth compared with the previous quarter reflected
increased competition, principally from the established operators.
Arcor generated service revenue growth in the quarter of 9.7% supported by a 70%
increase in the DSL customer base to over 1.8 million since the same quarter in
the previous year. Service revenue growth was lower than the previous quarter as
a result of increasing competition.
Acquisition and retention costs
-------------------------------
Net acquisition and retention costs as a percentage of service revenues were
broadly stable compared with the same quarter in the previous year for the
Europe region. Higher acquisition volumes, principally in prepaid, offset lower
average unit acquisition costs whilst both retention volumes and average unit
retention costs were lower compared with the same quarter in the previous year.
Net acquisition and retention costs as a percentage of service revenues were
slightly lower year on year in Spain and the UK, stable in Germany and slightly
higher in Italy.
EMAPA
A summary of the organic change in customers, usage and revenue for the quarter
ended 31 December 2006 compared to the same quarter in the previous year is set
out below:
--------------------------------------------------------------------------------
Eastern Middle East Associates
Europe Africa & Pacific and EMAPA
Asia investments
Organic change(1) % % % % %
--------------------------------------------------------------------------------
Closing mobile
proportionate customers(2) 21.0 40.3 7.0 14.4 20.8
Mobile voice usage(3) 35.4 38.4 13.3 n/a 31.2
Service revenue(3) 19.7 29.1 9.1 n/a 20.5
--------------------------------------------------------------------------------
Notes:
(1) The percentage movements in organic growth are presented to reflect
operating performance on a comparable basis, adjusting for acquisitions and
disposals and exchange rate movements
(2) Excludes the effect of the acquisitions in Turkey, Czech Republic and
the disposals in Belgium and Switzerland and assumes current period
ownership levels in both periods for stake increases in South Africa and
Egypt
(3) Excludes the effect of the acquisitions in Turkey, India and the Czech
Republic and, where relevant, exchange rate movements and assumes current
period ownership levels in both periods for stake increases in South Africa
The EMAPA region recorded 5.6 million proportionate organic net customer
additions in the quarter. Customer growth was strong across most of the region,
in particular in Egypt, the US, South Africa and India, with lower net additions
in the Pacific area consistent with higher penetration in those markets.
The total proportionate base reached 99.8 million compared with 70.9 million for
the same quarter in the previous year, reflecting both strong growth and the
benefit of new businesses.
Organic growth in service revenue was 20.5%, driven by a 26.8% increase in
controlled average customers, which was partly offset by declining ARPU in some
markets as a result of the increasing proportion of lower usage prepaid
customers.
Eastern Europe
--------------
Organic growth in service revenue of 19.7% for Eastern Europe for the quarter
was primarily due to customer growth and compared with 22.0% growth in the
previous quarter.
The principal driver of organic growth in Eastern Europe continued to be
Romania, where the customer base has now reached 7.7 million. Organic service
revenue growth of 29.7% in Romania continued to be driven substantially by
customer growth although ARPU has also increased slightly year on year due to
usage stimulation and continued leadership in the business segment.
The Group's acquisition in Turkey also continued to perform well. Improvements
to network coverage and quality have supported a price increase during the
quarter, which has lowered the rate of customer and usage growth but maintained
ongoing strong revenue growth.
Middle East, Africa and Asia
----------------------------
In Middle East, Africa and Asia, organic growth in service revenue for the
quarter was 29.1%, unchanged from the previous quarter. Service revenue growth
continued to be driven by strong increases in customers.
Egypt reported organic growth in service revenue of 42.0%, which included a 7.2%
rise in blended ARPU resulting from increased prepaid usage. On 22 January 2007
Egypt acquired a 3G licence for approximately £300 million, plus an annual
percentage of revenue, to further enhance its products and services and provide
additional capacity, as well as agreeing an extension of the 2G licence until
2022.
Vodacom, the Group's joint venture based in South Africa, reported organic
growth in service revenue of 22.6% for the quarter due to a 32.4% increase in
average customers year on year, reflecting the successful launch of several new
offerings and promotions and strong growth in its investments outside South
Africa.
Bharti Airtel, the Group's joint venture in India, reported strong growth in
customers and total revenue. Total revenue growth of 62% resulted from the
customer base being 96% higher year on year.
Pacific
-------
The Pacific area delivered 9.1% organic growth in service revenue compared with
10.3% for the previous quarter. Organic service revenue growth in New Zealand
improved to 7.0% from broadly stable in the previous quarter due to the timing
of termination rate reductions in the previous year. In Australia, continued
focus on higher value customers delivered organic service revenue growth of
10.6%, including further improvement in blended ARPU.
Associates and investments
--------------------------
The Group's associates and investments added 1.7 million proportionate organic
customers in the quarter although the disposal of interests in Proximus and
Swisscom Mobile reduced total proportionate customers by 2.2 million.
In the US, Verizon Wireless reported record quarterly customer growth of over
2.3 million net additions, with the Group's proportionate share at over 1
million for the first time. This ongoing strong customer growth, due in part to
market leading annualised blended churn of 13.7%, and continued success in
driving the uptake of non-voice services, led to organic service revenue growth
of 17.1% for the quarter.
Proportionate net additions for SFR were 138,000, bringing the proportionate
customer base to 7.9 million. SFR reported broadly stable service revenue for
the quarter compared with the same quarter in the previous year, reflecting the
intense competitive environment in France.
- ends -
For further information:
Vodafone Group
Investor Relations Media Relations
Tel: +44 (0) 1635 664447 Tel: +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 interim results announcement for the six months
ended 30 September 2006.
2. At the country level, service revenue growth is calculated in local
currency and before the elimination of intercompany revenue. For the
segments within Europe and EMAPA, service revenue growth is calculated
using constant exchange rates and after the elimination of trading between
Group companies within the segment. The basis of calculation for organic
growth is included in the Group's Annual Report for the year ended
31 March 2006.
3. Vodafone, Vodafone live!, Vodafone Zuhause and Vodafone Casa are
trademarks of the Vodafone Group.
CAUTIONARY STATEMENT
This press release contains 'forward-looking statements' with respect to
Vodafone's anticipated benefits from certain cost reduction initiatives,
expected capitalised fixed asset additions and operating expenses, anticipated
timing for the deployment of new services and the Group's outlook for the year
ending 31 March 2007, including in particular statements with respect to growth
in revenue, expected changes in margins, expected capitalised fixed asset
additions and expected free cash flow for that period. By their nature,
forward-looking statements are inherently predictive, speculative and involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future. There are a number of factors that could cause
actual results to differ materially from those expressed or implied by these
forward-looking statements. These factors include, but are not limited to:
changes in economic or political conditions in markets served by operations of
the Group that would adversely affect the level of demand for mobile services;
greater than anticipated competitive activity from both existing competitors and
new market entrants; slower than expected customer growth and reduced customer
retention; changes in the spending patterns of new and existing customers;
changes in the regulatory framework in which the Group operates, including
possible action by regulators in markets in which the Group operates; changes in
exchange rates; final resolution of open issues which might impact the Group's
effective tax rate; the Group's ability to achieve meaningful cost savings and
revenue improvements as a result of its cost reduction including outsourcing
initiatives; the timing and impact of investment in network capacity and the
deployment of new technologies; and changes in any other factors described under
'Cautionary Statement Regarding Forward-Looking Statements' in the Group's
Annual Report for the financial year ended 31 March 2006. Furthermore, a review
of the reasons why actual results and developments may differ materially from
the expectations disclosed or implied within forward-looking statements can be
found under 'Risk Factors, Trends and Outlook - Risk Factors' in the Group's
Annual Report for the financial year ended 31 March 2006. All subsequent written
or oral forward-looking statements attributable to Vodafone or any other member
of the Group or persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. No assurances can be given that the
forward-looking statements in this document will be realised. Neither Vodafone
nor any of its affiliates intends to update these forward-looking statements.
KEY PERFORMANCE INDICATORS
MOBILE TELECOMMUNICATIONS BUSINESSES
PROPORTIONATE MOBILE CUSTOMERS - 1 APRIL 2006 TO 31 DECEMBER 2006
-------------------------------------- ------------------------------------
SIX MONTHS TO 30 SEPTEMBER 2006 QUARTER TO 31 DECEMBER 2006
-------------------------------------- ------------------------------------
COUNTRY PERCENTAGE AT NET OTHER AT NET OTHER AT PREPAID
OWNERSHIP 1 APR ADDITIONS MOVEMENTS 30 SEP ADDITIONS MOVEMENTS 31 DEC (3)
(1) 2006 2006 (2) 2006
('000s) ('000s) ('000s) ('000s) ('000s) ('000s) ('000s) (%)
-------------------------------------- ------------------------------------
Europe:
Germany 100.0% 29,191 431 - 29,622 709 291 30,622 54.4%
Italy 76.9% 18,490 847 - 19,337 792 - 20,129 92.1%
Spain 100.0% 13,521 1,087 (584) 14,024 440 - 14,464 45.9%
UK 100.0% 16,304 (17) - 16,287 652 - 16,939 60.6%
-------------------------------------- ----------------------------
77,506 2,348 (584) 79,270 2,593 291 82,154 65.4%
Albania 99.9% 772 96 - 868 51 - 919 96.9%
Greece 99.9% 4,471 281 3 4,755 200 - 4,955 68.5%
Ireland 100.0% 2,075 44 - 2,119 59 - 2,178 74.0%
Malta 100.0% 175 9 - 184 4 - 188 89.9%
Netherlands 100.0% 3,909 (15) - 3,894 66 (143) 3,817 46.9%
Portugal 100.0% 4,276 306 (145) 4,437 181 - 4,618 79.5%
-------------------------------------- ----------------------------
15,678 721 (142) 16,257 561 (143) 16,675 69.1%
-------------------------------------- ----------------------------
Total Europe 93,184 3,069 (726) 95,527 3,154 148 98,829 66.0%
-------------------------------------- ----------------------------
EMAPA:
Eastern Europe:
Czech
Republic 100.0% 2,214 97 - 2,311 102 - 2,413 47.2%
Romania 100.0% 6,384 771 - 7,155 562 - 7,717 66.5%
Hungary 100.0% 2,063 (13) - 2,050 84 - 2,134 63.1%
Turkey 100.0% - 1,251 10,930 12,181 567 - 12,748 90.7%
Poland 19.6% 1,918 264 - 2,182 173 - 2,355 59.3%
-------------------------------------- ----------------------------
12,579 2,370 10,930 25,879 1,488 - 27,367 71.0%
Middle East, Africa
& Asia:
Egypt 54.9% 3,314 660 - 3,974 402 403 4,779 92.7%
Kenya 35.0% 1,380 245 - 1,625 242 - 1,867 98.3%
South
Africa (4)(5) 50.0% 10,968 2,128 (1,191) 11,905 1,083 - 12,988 89.3%
India 10.0% 1,958 748 - 2,706 491 - 3,197 87.2%
-------------------------------------- ----------------------------
17,620 3,781 (1,191) 20,210 2,218 403 22,831 89.4%
Pacific:
Australia 100.0% 3,177 13 - 3,190 109 (21) 3,278 73.5%
New Zealand 100.0% 2,068 43 - 2,111 89 - 2,200 76.4%
Fiji 49.0% 101 21 - 122 13 - 135 95.2%
-------------------------------------- ----------------------------
5,346 77 - 5,423 211 (21) 5,613 75.7%
Associates &
Investments:
United
States (5) 45.0% 23,530 1,657 4 25,191 1,039 - 26,230 5.4%
Other(2) 18,312 1,026 - 19,338 613 (2,237) 17,714 76.4%
-------------------------------------- ----------------------------
Total 41,842 2,683 4 44,529 1,652 (2,237) 43,944 65.3%
-------------------------------------- ----------------------------
Total EMAPA 77,387 8,911 9,743 96,041 5,569 (1,855) 99,755 69.5%
-------------------------------------- ----------------------------
Total 170,571 11,980 9,017 191,568 8,723 (1,707) 198,584 68.9%
-------------------------------------- ----------------------------
Notes:
(1) All ownership percentages are stated as at 31 December 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 ended 31 December 2006 represents the
acquisition of minority interests in Vodafone Netherlands and Vodafone
Egypt and the completion of the sales of the Group's associates in Belgium
on 3 November 2006 and Switzerland on 20 December 2006. It also includes
the impact of a regulatory driven change in the prepaid disconnection
policy for Germany, the disconnection of inactive prepaid SIM cards in the
Netherlands and the disposal of a service provider customer base in
Australia.
(3) Prepaid customer percentages are calculated on a venture basis. At 31
December 2006, there were 600.0 million venture customers.
(4) 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.
(5) The Group's proportionate customer base in South Africa and Verizon
Wireless has been adjusted for their proportionate ownership of their
customer base across all their network interests of approximately 92.1%
and 98.6%, respectively, at 31 December 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
their networks.
VODAFONE LIVE! ACTIVE DEVICES
------------------------------------ ---------------------------
SIX MONTHS TO 30 SEPTEMBER 2006 QUARTER TO 31 DECEMBER 2006
------------------------------------ ---------------------------
COUNTRY AT NET AT NET AT
1 APR 2006 ADDITIONS 30 SEPT 2006 ADDITIONS 31 DEC 2006
('000s) ('000s) ('000s) ('000s) ('000s)
Europe:
Germany 6,214 27 6,241 211 6,452
Italy(1) 4,097 631 4,728 758 5,486
Spain 5,514 1,078 6,592 252 6,844
UK 4,181 291 4,472 238 4,710
Other 4,229 658 4,887 298 5,185
------------------------------------ ---------------------------
Total Europe 24,235 2,685 26,920 1,757 28,677
Total EMAPA 2,835 937 3,772 226 3,998
------------------------------------ ---------------------------
Group Statutory
Total(2) 27,070 3,622 30,692 1,983 32,675
------------------------------------ ---------------------------
Notes:
(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 31 December 2006, there
were an additional 7.2 million (30 September 2006: 6.8 million,
30 June 2006: 6.5 million, 31 March 2006: 5.9 million) registered Vodafone
live! venture customers in the Group's associated undertakings.
3G DEVICES
---------------------------------- ---------------------------
SIX MONTHS TO 30 SEPTEMBER 2006 QUARTER TO 31 DECEMBER 2006
(RESTATED)
---------------------------------- ---------------------------
COUNTRY AT NET AT NET AT
1 APR 2006 ADDITIONS 30 SEPT 2006 ADDITIONS 31 DEC 2006
('000s) ('000s) ('000s) ('000s) ('000s)
Europe:
Germany 2,025 699 2,724 571 3,295
Italy(1) 2,250 580 2,830 597 3,427
Spain 902 837 1,739 540 2,279
UK 1,033 315 1,348 111 1,459
Other 1,230 496 1,726 346 2,072
----------------------------------- --------------------------
Total Europe 7,440 2,927 10,367 2,165 12,532
Total EMAPA(3) 416 342 758 290 1,048
----------------------------------- --------------------------
Group Statutory
Total(2) 7,856 3,269 11,125 2,455 13,580
----------------------------------- --------------------------
Consumer devices 7,196 2,923 10,119 2,181 12,300
Business devices 660 346 1,006 274 1,280
----------------------------------- --------------------------
7,856 3,269 11,125 2,455 13,580
----------------------------------- --------------------------
Notes:
(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 31 December 2006, there were an additional
2.6 million (30 September 2006: 2.3 million, 30 June 2006: 2.0 million,
31 March 2006: 1.7 million) registered Vodafone live! with 3G and Vodafone
Mobile Connect 3G/GPRS data card venture customers in the Group's
associated undertakings.
(3) With effect from the quarter ended 31 December 2006, 3G devices now
include the results of Vodafone Romania and previously reported numbers
have been restated to include an additional 135,000 and 222,000 3G
devices at 1 April 2006 and 30 September 2006 respectively.
AVERAGE MONTHLY MOBILE REVENUE PER USER IN THE QUARTER
-------------------------------------------------------------------------------------
COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC
2005 2005 2005 2006 2006 2006 2006
-------------------------------------------------------------------------------------
Europe:
Germany Total 24.3 24.4 22.9 21.5 22.1 22.4 20.9
(EUR) Contract 39.8 41.0 38.8 37.2 38.4 39.0 36.7
Prepaid 9.2 9.0 8.3 7.5 7.6 7.6 7.0
-------------------------------------------------------------------------------------
Italy Total 30.4 29.9 27.7 26.4 27.6 27.1 25.8
(EUR) Contract 79.4 75.0 73.7 71.0 72.6 68.0 71.1
Prepaid 25.8 25.9 23.5 22.2 23.3 23.2 21.5
-------------------------------------------------------------------------------------
Spain Total 36.2 37.7 35.3 33.3 35.3 36.4 35.3
(EUR) Contract 58.5 60.7 56.3 52.8 54.8 55.2 51.3
Prepaid 15.4 16.2 15.0 13.9 15.0 15.4 16.0
-------------------------------------------------------------------------------------
UK Total 24.6 25.1 23.8 22.7 23.7 24.5 23.6
(GBP) Contract 46.5 47.9 44.8 43.9 45.2 46.5 43.7
Prepaid 9.5 9.9 9.5 8.8 8.9 9.4 9.5
-------------------------------------------------------------------------------------
Albania Total 2,255 2,534 2,259 2,098 2,122 2,311 2,086
(ALL) Contract 18,783 19,815 18,499 16,777 17,240 17,941 16,329
Prepaid 1,680 1,936 1,701 1,593 1,606 1,782 1,605
-------------------------------------------------------------------------------------
Greece Total 32.2 34.2 31.3 29.8 31.1 31.0 27.6
(EUR) Contract 65.1 69.7 64.2 61.5 65.6 66.8 61.6
Prepaid 15.1 15.7 14.1 13.4 13.7 13.4 11.4
-------------------------------------------------------------------------------------
Ireland Total 51.4 53.1 50.2 48.6 48.8 46.9 45.6
(EUR) Contract 101.9 107.8 99.9 99.3 102.8 99.4 94.5
Prepaid 32.1 32.6 31.6 30.0 29.3 28.0 27.9
-------------------------------------------------------------------------------------
Malta Total 14.0 16.2 13.0 12.1 14.7 16.6 12.6
(MTL) Contract 74.6 91.4 61.8 54.4 72.3 87.1 52.6
Prepaid 7.4 7.8 7.3 6.9 7.4 7.9 7.3
-------------------------------------------------------------------------------------
Netherlands Total 37.1 36.6 34.5 33.6 35.7 36.9 31.7
(EUR) Contract 69.5 68.6 64.7 61.3 63.5 64.6 52.0
Prepaid 11.3 11.0 9.8 9.2 10.1 10.4 9.8
-------------------------------------------------------------------------------------
Portugal Total 26.4 27.1 24.0 23.3 23.5 24.4 22.8
(EUR) Contract 67.3 69.8 61.9 62.4 62.2 62.8 57.8
Prepaid 14.3 14.7 13.4 12.9 13.0 13.9 13.2
-------------------------------------------------------------------------------------
EMAPA Subsidiaries:
Australia Total 47.8 48.2 51.4 47.9 49.4 52.4 54.0
(AUD) Contract 92.8 93.6 94.3 92.0 92.7 96.4 98.8
Prepaid 26.7 31.1 35.0 32.0 33.9 36.2 37.2
-------------------------------------------------------------------------------------
Czech Total 680 679 679 644 674 670 658
Republic
(CZK) Contract 1,029 1,017 1,015 951 978 966 946
Prepaid 340 342 337 311 331 334 331
-------------------------------------------------------------------------------------
Egypt Total 91.4 89.4 74.1 79.0 79.4 88.1 79.4
(EGP) Contract 268.6 283.9 274.1 289.3 292.1 309.7 289.9
Prepaid 60.7 62.4 52.0 56.0 57.1 66.7 61.4
-------------------------------------------------------------------------------------
Hungary Total 5,321 5,153 4,885 4,647 5,066 5,339 5,171
(HUF) Contract 11,302 11,264 9,666 8,809 9,129 9,097 8,529
Prepaid 3,391 3,046 3,043 2,887 3,125 3,359 3,250
-------------------------------------------------------------------------------------
New Zealand Total 50.7 51.0 51.2 51.2 46.6 46.6 50.7
(NZD) Contract 138.9 139.7 137.2 138.5 126.1 125.3 128.9
Prepaid 25.9 25.6 25.9 25.7 23.2 22.5 23.7
-------------------------------------------------------------------------------------
Turkey(1) Total N/A N/A N/A N/A N/A 16.5 14.4
(TRY) Contract N/A N/A N/A N/A N/A 31.4 28.2
Prepaid N/A N/A N/A N/A N/A 14.8 12.9
-------------------------------------------------------------------------------------
Romania Total 14.9 15.9 15.4 13.9 15.2 15.9 15.6
(USD) Contract 30.2 31.1 29.5 27.0 29.5 30.8 30.6
Prepaid 6.3 7.1 7.0 6.0 6.7 7.3 7.0
-------------------------------------------------------------------------------------
Note:
(1) On 24 May 2006, the Group acquired substantially all the assets and
business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a result,
average monthly revenue per user in the quarter has only been published with
effect from the quarter ended 30 September 2006.
MOBILE NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE(1)
--------------------------------------------------
QUARTER TO 31 DECEMBER 2006
--------------------------------------------------
COUNTRY MESSAGING DATA TOTAL
Germany 14.5% 8.4% 22.9%
Italy(2) 13.9% 4.8% 18.7%
Spain 9.6% 5.7% 15.3%
UK 16.6% 6.6% 23.2%
--------------------------------------------------
Group Statutory Total 13.6% 5.3% 18.9%
--------------------------------------------------
Notes:
(1) Service revenue from the mobile telecommunications businesses excludes
fixed line and DSL revenues.
(2) Under IFRS, Vodafone Italy is treated as a joint venture.
HISTORIC MOBILE NON-VOICE SERVICES INFORMATION
-------------------------------------------------------------
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE(1) IN
THE QUARTER TO
-------------------------------------------------------------
30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC
COUNTRY 2005 2005 2005 2006 2006 2006 2006
-------------------------------------------------------------
Germany 19.3% 19.5% 20.4% 21.7% 21.2% 21.6% 22.9%
Italy(2) 14.9% 16.8% 17.4% 18.0% 17.3% 17.5% 18.7%
Spain 13.7% 14.2% 14.8% 15.1% 15.7% 14.7% 15.3%
UK 19.3% 19.7% 20.7% 21.3% 20.9% 21.7% 23.2%
-------------------------------------------------------------
Group Statutory Total 16.2% 16.6% 17.2% 17.8% 17.4% 17.8% 18.9%
-------------------------------------------------------------
Notes:
(1) Service revenue from the mobile telecommunications businesses excludes
fixed line and DSL revenues.
(2) Under IFRS, Vodafone Italy is treated as a joint venture.
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
2005 2005 2005 2006 2006 2006 2006
------------------------------------------------------------
Germany (1) Total 17.3% 19.7% 21.2% 22.6% 20.7% 22.1% 20.1%
Contract 13.1% 14.3% 16.8% 16.7% 14.6% 13.5% 15.7%
Prepaid 21.1% 24.6% 25.2% 27.7% 26.0% 29.5% 23.9%
------------------------------------------------------------
Italy Total 17.3% 18.7% 19.1% 19.5% 20.8% 21.7% 19.4%
Contract 14.9% 14.5% 16.6% 14.5% 17.2% 13.6% 14.8%
Prepaid 17.5% 19.1% 19.3% 19.9% 21.1% 22.4% 19.8%
------------------------------------------------------------
Spain (2) Total 21.7% 20.7% 20.6% 20.6% 20.5% 37.0% 23.4%
Contract 13.6% 12.5% 13.9% 14.1% 12.3% 13.4% 15.3%
Prepaid 29.0% 28.1% 26.9% 26.9% 28.9% 62.5% 32.8%
------------------------------------------------------------
UK Total 32.4% 33.1% 31.9% 31.2% 32.8% 37.6% 35.4%
Contract 23.2% 21.6% 20.2% 21.2% 20.1% 18.8% 17.9%
Prepaid 38.3% 40.5% 39.5% 37.5% 40.9% 49.9% 47.0%
------------------------------------------------------------
Note:
(1) The customer churn for Germany for 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 for 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%.
ACTIVE MOBILE CUSTOMERS
-------------------------------------------------------------
ACTIVE CUSTOMERS(1) AT
-------------------------------------------------------------
COUNTRY 30 JUN 30 SEPT 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC
2005 2005 2005 2006 2006 2006 2006
-------------------------------------------------------------
Germany 93.0% 92.8% 91.5% 90.6% 90.6% 90.6% 89.9%
Italy(2) 92.2% 92.8% 92.1% 91.2% 90.9% 90.4% 89.3%
Spain 94.8% 95.0% 95.7% 94.3% 93.8% 98.5% 95.1%
UK 88.8% 90.6% 90.8% 88.4% 85.7% 86.9% 86.7%
-------------------------------------------------------------
Group Statutory Total (1) 91.3% 92.2% 92.1% 91.6% 91.0% 91.6% 90.8%
-------------------------------------------------------------
Notes:
(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
subsidiary in Turkey and 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 VOICE USAGE VOLUMES
------------------------------------------------------------------
TOTAL VOICE MINUTES(1) (MILLIONS) IN THE QUARTER TO
------------------------------------------------------------------
COUNTRY 3O JUN 30 SEPT 31 DEC 31 MAR 30 JUN 30 SEPT 31 DEC
2005(5) 2005(5) 2005(5) 2006 (5) 2006 2006 2006
------------------------------------------------------------------
Europe:
Germany 6,356 6,428 7,010 6,993 7,614 7,979 8,650
Italy(2) 7,173 7,164 7,521 7,746 7,687 8,050 8,256
Spain 5,648 5,859 5,966 6,362 6,978 7,533 7,655
UK 6,810 6,937 7,167 7,145 7,207 7,579 8,160
Albania 129 144 141 135 148 166 160
Greece 1,757 1,896 1,870 1,869 2,075 2,216 2,113
Ireland 1,263 1,279 1,302 1,289 1,380 1,422 1,462
Malta 42 47 43 43 49 55 50
Netherlands 1,697 1,601 1,755 1,733 1,820 1,711 1,868
Portugal 1,319 1,384 1,386 1,402 1,472 1,606 1,586
Sweden 688 681 753 - - - -
------------------------------------------------------------------
Total Europe 32,882 33,420 34,914 34,717 36,430 38,317 39,960
EMAPA Subsidiaries:
Australia 1,619 1,818 1,957 2,001 2,006 2,141 2,238
Czech Republic(3) 289 840 899 925 901 868 919
Egypt 1,979 2,341 2,278 2,442 2,869 3,462 3,670
Hungary 741 792 842 866 948 980 1,030
New Zealand 540 559 616 602 597 597 672
Romania(3)(5) 463 1,486 1,630 1,628 1,873 2,059 2,231
Turkey(4) - - - - - 6,451 5,781
------------------------------------------------------------------
5,631 7,836 8,222 8,464 9,194 16,558 16,541
Joint Ventures 2,021 1,957 2,598 4,684 5,763 6,387 7,389
------------------------------------------------------------------
TOTAL EMAPA 7,652 9,793 10,820 13,148 14,957 22,945 23,930
------------------------------------------------------------------
Group Statutory Total 40,534 43,213 45,734 47,865 51,387 61,262 63,890
------------------------------------------------------------------
Notes:
(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 Germany, Czech Republic and New Zealand 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,
voice minutes in the quarter have only been published with effect from the
quarter ended 30 September 2006.
(5) During the quarter to 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 correctly stated to network minutes.
This information is provided by RNS
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