Revenue up at Vodafone despite fall in spending
Published 10/11/2010 | 05:00
Mobile operator Vodafone gained just under 32,000 net new customers in Ireland in the quarter to the end of September, to bring its subscriber base here to over 2.18 million, the company said.
But the continuing downturn put further pressure on customer spending, with the blended average monthly revenue per user -- which includes pre-pay and post-pay customers -- sliding 8.9pc to €35.40.
Half of its 720,000 bill-pay customers are now using smartphones, according to the company, compared to 11pc of its total global user base. Data revenue in Ireland grew 26pc year-on-year in the quarter.
Vodafone wants to generate 70pc of its revenue within Europe from smartphone users in the financial year ending March 2013.
Releasing group half-year and second-quarter results yesterday, Vodafone noted that the company's total telecom subscriber base here, including fixed-line services provided through Vodafone At Home and its Perlico subsidiary, is now 2.38 million.
At a group level, Vodafone upped its full-year adjusted operating profit guidance by £400m (€463m) to £12.2bn (€14.1bn) and noted that it had experienced "improved revenue trends" in all regions.
Second-quarter organic service revenue rose 2.3pc, while Vodafone said its Verizon Wireless unit in the US had a "strong performance".
Organic group revenue in the first half of the year rose 1.8pc to £22.6bn (€26.1bn), while earnings before interest, tax, depreciation and amortisation for the period slipped 1.2pc to £7.36bn (€8.5bn).
Chief executive Vittorio Colao told investors that he's going to intensify Vodafone's focus on mobile data and providing "total communications" packages to customers in Europe as part of a fresh strategy for the group.
He's also reviewing all minority assets in order to concentrate on other parts of the business.
The company sold a stake in China Mobile in September and will also sell shares in Japanese wireless operator Softbank.
Its stakes in Verizon Wireless and France's SFR are also under review.
"Vodafone's first-half results look good, with revenues and earnings ahead of consensus," said analysts at Evolution Securities.
Shares in the group closed flat at £1.74.