Vodafone has revealed that a sharp rise in traffic volumes has offset the impact of regulatory price cuts and kept it on track to hit profit targets this year. The Newbury-based mobile phone group said that enforced changes to roaming charges for overseas calls, and lower call handling rates, meant its effective price per minute dropped 20.3% across Europe in the quarter to 30 June 2007. In the UK, for example, Vodafone’s 17.6 million customers rang up 8.9 billion minutes of usage compared with 7.2 billion a year ago, a 23% increase. Coupled with continuing strong revenue growth of 18.7% in Vodafone’s emerging markets in Eastern Europe and India, the group said it remained confident of hitting industry forecasts for the year.
Group revenue for the three month period was GBP8.3 billion, up 7.5% on the same period of 2006, of which GBP6.22 billion was generated in Europe. The European region recorded 2.3 million net customer additions in the quarter compared with 0.9 million a year earlier.