Vodafone UK sheds more customers in Q2, but service revenue trend improves

Tuesday 14 November 2017 | 11:06 CET | News

Vodafone UK generated total revenue of EUR 3.51 billion for the six months to end-September, with service revenue down 2.8 percent to EUR 3.07 billion. Mobile service revenue for the first-half was EUR 2.38 billion, and fixed service revenue reached EUR 697 million. Adjusted EBITDA was up 46.6 percent to EUR 930 million, with adjusted EBIT reaching EUR 121 million for the six months. 

On a quarterly and organic basis, Vodafone reported service revenue down 3.0 percent in the three months to September, after a 2.7 percent fall in fiscal Q1. Excluding the impact of regulation and handset financing, service revenue returned to growth of 0.6 percent in Q2. Mobile service revenue was up 1.0 percent on the same basis, driven by the launch of new propositions, consumer price increases and a better inflow mix of higher-value customers, the company said.

Vodafone said its NPS had fully recovered from its billing problems last year. It still lost 3,000 contract mobile customers in Q2, similar to losses in the previous quarter, while prepaid losses halved compared to Q1 to 73,000. Vodafone said the declines were due to its decision to phase out the low-end TalkMobile brand. Excluding this effect, the contract mobile customer base increased by 59,000 in fiscal H1. Mobile ARPU reached GBP 18.5 on a blended basis, down from GBP 18.9 a year ago but up from GBP 18.2 in Q1. 

The 4G network population coverage was 97 percent at end-September. 

Fixed service revenue fell 2.3 percent in H1, reflecting a lower Enterprise customer base and competitive pricing pressure. Consumer broadband net additions reached a record 35,000 households in Q2, with Vodafone now serving a total of 278,000 customers. 

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