Vodafone Germany returns to annual service revenue growth

Tuesday 16 May 2017 | 09:16 CET | News

Vodafone Germany reported a return to service revenue growth for the first time in six years, with the figure up 1.9 percent to EUR 10.01 billion in the year to March. Fixed services led the increase, up 4.8 percent to EUR 3.94 billion, while mobile service revenue rose just 0.1 percent, hurt by cuts to termination and roaming rates. 

Annual EBITDA was up a stronger 4.5 percent to EUR 3.62 billion, and the margin improved 1.5 percent points over the year, driven by cost savings from the integration of Kabel Deutschland and a focus on more profitable direct sales channels, Vodafone said. Adjusted EBITDA growth accelerated to 6.0 percent on an organic basis in H2, the company added.

In the final quarter of the year, mobile service revenue fell 0.4 percent to EUR 1.5 billion. Despite a 2.1 percent annual increase in the customer base to 44.6 million, ARPU was down 1.6 percent to EUR 14.9 on the regulatory pressure. Compared to end-2016, the operator added 123,000 postpaid customers, more than double the amount in fiscal Q3, while losing 18,000 prepaid users in Q4.

Fixed broadband customers increased by 123,000 in Q4 to 6.258 million, including growth in both cable and DSL. The new GigaTV offer launched in February did not yet have an impact on TV subscribers, with the total falling by 0.6 percent in the quarter to 7.744 million. GigaKombi customers, taking both fixed and mobile services, totaled 357,000 at the end of March. Quarterly fixed service revenues rose 3.7 percent year-on-year to EUR 992 million. 

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