Vodafone 1Q10 results show return to organic revenue growth

23 Jul 2010

UK-based mobile giant Vodafone Group has announced a return to organic growth in its first fiscal quarter of the 2010/11 financial year, posting a 1.1% year-on-year increase in organic service revenue on the back of improvements in a number of the group operating countries, including the UK and Germany. For the three months ended 30 June 2010 Vodafone generated group revenues of GBP11.3 billion (USD17.2 billion), up 4.8% against 1Q09, while group service revenue rose 4.9% to GBP10.6 billion. Service revenues from Vodafone Group’s European operations however were 1.7% lower than the corresponding period a year earlier, although this was a 0.7 percentage point improvement on the previous three-month period, with the company noting that its northern European units had seen an uptick in economic conditions. The group’s capital expenditure over the period was GBP1.04 billion, which it said reflected continued investment in its European networks, enhancement of infrastructure in Turkey and the continued network rollout in India. Additionally, in the three-month period Vodafone Group also spent around GBP3 billion on acquiring spectrum licences in India and Germany.

Commenting on the results, Vodafone Group CEO Vittorio Colao noted: ‘These are the first quarterly results to show service revenue growth since the global recession impacted. We have achieved these results through our continuing commercial approach in key European markets, focusing especially on data, and from strong growth in emerging markets, with India now cash positive at an operating level and our highest ever quarterly revenue in Turkey. The financial outlook for the current year is confirmed.’

United Kingdom, Vodafone Group