UK-based Vodafone Group has released its financial results for the three months ended 30 June 2012, revealing a 7.7% year-on-year drop in reported group revenue and an 8.1% decline in group service revenue, as its operations in its home territory, Spain and Italy struggled.
In the first quarter of its 2012/13 fiscal year Vodafone Group posted a total group revenue of GBP10.77 billion (USD16.9 billion), with the company noting that on an organic basis this represented a 1% increased from the same period a year earlier. Group service revenue for the quarter meanwhile stood at GBP9.98 billion, which the company said equated to an increase of 0.6% on an organic basis. In particular the group highlighted ‘continued strong service revenue growth in emerging markets’, pointing to Vodacom in South Africa, where revenues increased 5.7% organically y-o-y, India (up 16.2%) and Turkey (18.7%). Closer to home though it cited ‘mixed trends’, noting that a 4.2% increase in service revenue growth in Germany had been offset by continued challenging conditions in both Spain and Italy, where service revenues dropped by 10.0% and 7.7% respectively . Domestically meanwhile Vodafone Group also noted that its UK subsidiary registered a 0.8% drop in sales, a decline it said was the result of ‘increased competition and a weaker economy.’
In operational terms, at the end of June 2012 Vodafone Group’s total subscriber base stood at just over 406.4 million, up from 404.7 million three months earlier. Subscriber declines however were recorded in a number of countries, including the UK, Italy, Spain and Germany; notably, the latter two units saw their respective customer bases each drop by more 600,000 compared to end-March 2012. India meanwhile led the group’s subsidiaries in terms of subscriber additions, registering 3.24 million new customers over the three month period, while other stronger performers included Egypt and Ghana, which saw increases of 443,000 and 284,000 respectively.
Commenting on the results, Vittorio Colao, Vodafone Group CEO, said: ‘Despite the difficult market conditions, particularly in southern Europe, we continue to make progress in the key areas of data, enterprise and emerging markets, while maintaining tight control of our cost base. We remain focused on driving through significant improvements to our customers’ experience through our ongoing investment in our networks, stores and IT platforms.’