Monday 24 November 2014

Vodafone Ireland's ARPU down over 11pc in 2013

Year was tough for operators hit by changing customer habits and increased revenue

Published 06/02/2014 | 12:00

A pedestrian uses a mobile device as balloons sit beneath a sign outside a Vodafone store
A pedestrian uses a mobile device as balloons sit beneath a sign outside a Vodafone store

Vodafone Ireland’s average revenue per user fell by more than 11pc over the last year, marking a tough year for mobile industry revenues.

The operator, which remains the largest in Ireland with around 40pc market share, also saw European revenues fall by 5pc. The company said that its falling revenues were the result of fierce competition, tighter regulatory controls and shifts in customer usage patterns.

Vodafone’s average revenue per used (ARPU) fell to €28, down from €31.40 a year ago. The fall mirrors an overall market decline in Irish monthly mobile revenues, with the average Irish ARPU falling 11pc from €29.30 to €26.20 in the year up to October 2013.

However, the operator saw its customer numbers rise by 9,000 to 2.15m. It also said that the number of its customers using mobile internet services rose 42pc in the last year and now stands at three in four.

The proportion of prepaid customers on Vodafone fell 2pc in the last year, mirroring the overall shift from prepaid to contract customers in the Irish mobile industry as more people move to high-end smartphones that require large upfront costs on prepaid plans.

The company is currently rolling out its 4G network through the country, which it hopes can bolster revenues in the Irish market. The operator is also understood to be considering new broadband rollout plans in Ireland.

The last available accounts for Vodafone show that the company made a profit of €115m in the year to mid-2012.

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