Vodafone reported group revenue of €10.7 billion, down by €0.2 billion due to foreign exchange rate effects, as Q1 organic service revenue declined 0.2%, improving compared to Q4 (-0.7%).
Vodafone said customer growth slowed compared to previous quarters, primarily reflecting increased competitor promotions in Spain and Germany, as well as slower broadband market growth in Italy. However, Voda Consumer mobile commercial performance in Spain stabilised in June.
Vodafone's acquisition of Liberty Global is expected to close in the coming days.
Nick Read, Group Chief Executive, commented: “Our service revenue growth improved during the first quarter, led by Italy, and mobile churn fell to another record low. Following a significant quarter of commercial activity, we expect the gradual recovery in our service revenues to continue, underpinning our financial outlook for the year. With the completion of the Liberty Global acquisitions, Vodafone will become Europe’sleading converged operator, with growing fixed and converged services contributing around half of our European service revenues. We have developed a detailed plan to deliver the customer benefits and capture the substantial synergiesfrom the deal, which we will start to execute immediately
Some highlights
- Vodafone is actively implementing simplified pricing plans with speed-tiered unlimited data launched in 5 markets.
- The company said it is on track to meet the Group’s €400 million FY20 net operating expenses reduction target in Europe.
- In mobile, the company reported a 0.5 percentage point year-on-year reduction in Europe contract churn during Q1, reaching a new record low level of 14.6%.
- Data usage growth remained strong at 49%, with average smartphone usage increasing to 3.9 GB per month in Europe.
- Vodafone has now launched 5G in five European markets, with services available in Spain, Italy and Romania since June, and the UK and Germany since July.
- 5G roaming is now live for Vodafone 5G customers roaming on Vodafone networks in Germany, Italy, the UK and Spain.
- Vodafone's 5G network will be live across more than 50 cities and available in nine European markets by the end of the current financial year.
- Including VodafoneZiggo, Vodafone had 18.8 million fixed broadband customers, 14.6 million NGN customers, 6.7 million converged customers and 13.6 million TV customers in Europe at the end of the period.
- Excluding VodafoneZiggo, Vodafone added 54,000 broadband customers, 237,000 NGN customers and 115,000 converged customers during the quarter.
