Foreign exchange effects impact Vodafone Group revenue

26 Jul 2019

Vodafone Group has reported consolidated revenue of EUR10.653 billion (USD11.9 billion) for the quarter ended 30 June 2019, citing foreign exchange effects as the reason for a 2.3% year-on-year decline in the figure. Group service revenue, meanwhile, totalled EUR8.994 billion in the three-month period under review, down from EUR9.130 billion in the corresponding quarter a year earlier, but broadly flat in organic terms (down 0.2% y-o-y). Further, the UK telecom giant highlighted ‘sequential progress in Europe’, where service revenues were down 1.7% y-o-y on an organic basis, compared to the 2.1% annualised organic decline reported for the previous quarter, with the group noting that market conditions ‘continued to improve in Italy and retail growth in Germany remained robust, offsetting the impact of competitor promotions in Spain’. By comparison, service revenue from the group’s ‘Rest of World’ division was up 5.3% in organic terms, at EUR2.114 billion.

In operational terms, Vodafone Group reported a mobile subscriber base of 273.341 million for the end of June 2019, down from 275.108 million a year earlier. Fixed broadband accesses continued to climb though, reaching 17.497 million at the end of the reporting period, up from 16.267 million at end-June 2018. Similarly, fixed line voice customer numbers maintained an upward trend, to end the quarter at 15.741 million (Jun-18: 15.043 million), while pay-TV accesses stood at 9.731 million, broadly unchanged from 9.736 million at mid-2018.

Within its quarterly trading update, meanwhile, Vodafone Group also confirmed that it now expects its acquisition of Liberty Global’s cable assets in Germany, Hungary, Romania and the Czech Republic to complete by 31 July 2019, having received EC approval for the deal earlier this month. Another transaction – Vodafone Group’s disposal of its New Zealand unit – is also now confirmed to be set for conclusion on 31 July.