British mobile giant Vodafone Group has reported that its first quarter group service revenues were up 1.5% on an organic basis against the same period a year earlier at GBP10.858 billion (USD17.597 billion), despite the continued difficult economic conditions in the south of Europe. For the three months ended 30 June 2011, Vodafone posted a 1.3% decline in turnover from its European mobile operations in organic terms, although this was more than offset by an 8.7% organic increase in revenues from its Africa, Middle East and Pacific subsidiaries. The company highlighted strong performance from its Indian and Turkish units in particular, which reported revenue growth of 16.8% and 32.1% respectively, while it also noted that its UK and German subsidiaries had seen resilient performance, posting revenue increases of 0.2% and 1.7%. Spain and Italy meanwhile were pointed to as particularly troublesome spots, with the former seeing turnover plunge by almost 10% year-on-year on the back of price reductions.
Capital expenditure for the quarter stood at GBP1.2 billion, up by GBP200 million on the same period in the previous year, with Vodafone noting that the increase was primarily related to investment in Long Term Evolution (LTE) in Germany, in addition to network enhancements at Vodacom in South Africa.
In operational terms, at the end of June 2011 Vodafone reported a total subscriber base of 381.715 million, of which 79.1% were signed up to pre-paid services.
Commenting on the results, Vodafone CEO, Vittorio Colao said: ‘We have made a good start to the year, reporting robust results despite challenging macroeconomic conditions across southern European economies and the impact of cuts to mobile termination rates. Revenue from our key focus areas of data, enterprise and emerging markets continues to grow strongly. With our broad geographical mix and improving market positions, we are well placed for the rest of the financial year.’