Publications

Format: Dec 2018
sort ascending Sector(s) Date
Vodafone Q1 2016/17 results: Price-led growth

Vodafone Europe’s mobile service revenue growth continued to recover, despite regulatory and calendric headwinds, and continued customer service issues in its UK business

The improvement was driven by fairly aggressive price increases, most acutely in Spain, which drove fairly dramatic ARPU growth improvements but also subscriber growth slowdowns

While using network improvements to drive pricing premia is a sound strategy, the timing may be a little premature, and any significant macroeconomic Brexit impact may force Vodafone to reverse course

  • Vodafone
Mobile, Telecoms 26 July 2016
Vodafone Q1 2015/16 results: Steady improvement continues

Vodafone Europe’s slow but steady improvement in service revenue growth continued into the June quarter to reach -1.5% from -2.6% in the previous quarter, and -8.2% just one year ago

This was driven in roughly equal parts by subscriber growth improvements and ARPU, with both likely benefiting from Vodafone’s Project Spring investment, rapidly growing mobile data and an easing of competitive aggression

Mobile service revenue is still declining at 2-3%, making margin stabilisation still challenging for now, but there remains room for further improvement, and revenue stabilisation is at last in sight

  • Vodafone
Fixed Line, Telecoms 5 August 2015
Vodafone Q1 2014/15 results: Modest signs of recovery

Vodafone Europe’s service revenue growth improved slightly in the June quarter, by 0.6ppts to -7.9%, largely due to it running out of revenue to lose in some segments, but contract net adds were disappointing, with the company still losing ground competitively

Investment in Project Spring is surging with capex double the prior year and 4G coverage accelerating, which is very encouraging for the medium term, but it will be some time before this pays off in revenue and profit terms

Recent in-market mobile consolidation may result in more investment-focused competitive environments, despite the best efforts of regulators to sustain anti-investment price-based competition, but these too will take some time to emerge

  • Vodafone
Telecoms, Mobile 27 July 2014
Vodafone Q1 2013/14 results: Uneven bounce

Vodafone Europe’s reported organic service revenue growth improved in the June quarter for the first time in over a year, albeit to the still-somewhat-unimpressive figure of -7.2%

This was however helped by slightly improving MTR cuts and the previous quarter being hit by the leap year effect; on an underlying basis growth declined again

Contract net adds continue to be weak, ARPU continues to suffer from the dilutive Vodafone Red tariffs, and the company continues to invest heavily in fixed line and lightly in mobile, the wrong way around in our view

  • Vodafone
Mobile, Telecoms 21 July 2013
Vodafone Live

Vodafone Live represents an attempt to claw back some of the initiative from handset manufacturers, and to offer product and services that add to revenue. We look at the early evidence from the UK about the design of this package, its consumer appeal and the likely impact on ARPU. Vodafone is launching this new campaign with a Java-enabled camera phone from Sharp. It is putting tens of millions of pounds behind Live, apparently targeting the product at young urban males, a demographic group that has become very loyal to Nokia. The first phone is attractive and well featured, but we question whether it is of sufficiently general appeal significantly to influence overall ARPU in European markets, particularly in light of the low levels of interest we are finding in our consumer research on camera phones.

Our most recent survey of handset purchase intentions shows a dramatic increase in interest in buying a new phone among UK adults. 39% of handset owners claim an intention to purchase in the next year, compared to about 30% in the last three bi-monthly surveys.

  • Vodafone
Telecoms 28 October 2002
Vodafone KPIs - strategic issues

  • Vodafone
Telecoms 27 January 2006
Vodafone June quarter KPIs: the slide continues

Vodafone’s European revenue growth continued to slide, down to -4.4% in the June quarter from -3.3% last quarter, which itself was a sharp drop

A substantial element of this quarter’s decline was driven by an acceleration in termination rate cuts in Germany, but the general trend is weak volumes driven by a weak economy

With a substantial termination rate cut in the UK taken from 1st July, we expect growth to decline again in the September quarter, before stabilising/improving for the rest of the year

  • Vodafone
Telecoms, Mobile, Non-UK Telecoms 25 July 2009
Vodafone June quarter KPIs: excuses, excuses…

Vodafone blamed a harsh competitive environment and the timing of Easter for its low revenue growth in core markets reported this week. Its growth did at least not decline again, although we expect that Vodafone will again prove to be underperforming its competitors as they report their figures over the coming weeks 

CPW will also benefit from its partnership with AOL for portal advertising, content and other internet-based applications, relatively small but fast-growing value-added services in which CPW has little experience or market position, which will prove important in terms of both customer retention and margins.

  • Vodafone
Telecoms 25 July 2006
Vodafone June quarter 2011 results: Spain continues to drag

Vodafone Europe’s service revenue growth dropped by 0.5ppts to -1.3% in the June quarter, although most of this was due to a sharp MTR cut in the UK

Revenue in Spain was very weak due to a price re-adjustment, but trends elsewhere were broadly positive, with voice minutes growth improving overall

Medium term prospects are good, with MTR cuts fading, competitive performance improving and data growth likely to re-accelerate, but we expect declining growth in Turkey to drive a worse performance in the short term

  • Vodafone
  • Orange
Mobile, Telecoms 24 July 2011
Vodafone June quarter 2010 results: confidence issues

Vodafone Europe’s revenue growth again notched up, increasing by 0.7ppts as reported or 0.3ppts in underlying terms, with minutes volume growth accelerating by 1.8ppts

This is a little disappointing in the context of the rate of reported GDP recovery, but consumer confidence, particularly in Southern Europe, has re-dipped in the last few months, making raw GDP figures less relevant than they once were

Data revenue is forging ahead, but voice pricing is steadily weakening, and with many offers linking voice, text and data into an inseparable bundle the former may be causing the later, implying that data’s contribution to overall revenue is easy to overestimate

 

  • Vodafone
Telecoms, Mobile, Non-UK Telecoms 22 July 2010
Vodafone June 2008 KPIs: economic woes... or competitive struggles?

Vodafone Europe’s service revenue growth dropped by two full percentage points in the quarter to June 2008; Spain plummeted from +5.1% to -2.5%, but the UK and Italy’s underlying growth also fell, with only Germany stable

  • Vodafone
Telecoms, Mobile, Non-UK Telecoms 21 July 2008
Vodafone June 07 Q1 results

Vodafone’s European operations revenue growth dropped, but not as much as various regulatory interventions would have warranted, implying a strong operational performance

 

  • Vodafone
Mobile, Telecoms, Non-UK Telecoms 17 July 2007
Vodafone half year 2010/11 results: slow improvements, strong strategy

Vodafone Europe’s underlying revenue growth rose slightly in the September quarter, performing well in a market that is still only slowly recovering. Control of fixed costs was strong, but rising handset subsidies pushed margins down again

Vodafone’s updated strategy contains strong elements of a focus on the nitty gritty and a move away from the more expansive desires of the past, which is excellent. Successful implementation remains a challenge, but at least head office is likely to be a help, not a hindrance

Vodafone’s medium term expectations are for growing revenue and stable margins, which is laudably ambitious compared to past performances, and may even be achievable if it can balance smartphone tariffs and handset subsidies to its net advantage

  • Vodafone
Telecoms, Mobile 11 November 2010
Vodafone H1 2011/12 results: Doing well in difficult circumstances

Vodafone Europe’s service revenue growth improved marginally in the September quarter, a very solid performance under tricky circumstances, helped by good competitive performances and judicious pricing measures

The combined Europe and group common function EBITDA margin was again held flat, despite continued smartphone adoption pushing up handset costs, with strong cost control again evident

Pricing, competitive, regulatory and cost trends are all going well; but macroeconomic trends are clearly not, and are likely to make an acceleration in the second half of the year very difficult

  • Vodafone
  • T-Mobile
Mobile, Telecoms 10 November 2011
Vodafone H1 2009/10 results: hitting the nadir?

Vodafone Europe’s service revenue growth declined again in the September quarter to -4.6%, but on an underlying basis it improved, and volume growth also improved, suggesting that improving economic fundamentals are starting to feed through

Margins again fell, with the net benefit of the cost reduction program a long way from compensating for revenue declines, but overhead costs are at least dropping in absolute terms

We are optimistic that revenue growth can continue recovering in Europe, implying a still-depressed 2009/10 but a much better 2010/11, with positive revenue growth in 2010/11 a real possibility, and that the company could stabilise margins if it sticks to cost reduction plans, and resists the temptation to ‘reinvest’ in ‘strategic’ initiatives

  • Vodafone
Telecoms, Mobile, Non-UK Telecoms 11 November 2009
Vodafone H1 2006/07 results: on the mend?

Vodafone’s revenue growth has improved, with core underlying growth rising both relative to the previous quarter and relative to its competitors

  • Vodafone
Telecoms, Mobile 16 November 2006
Vodafone FY 2011/12 results: Revenue growth improves, margins shakier

Vodafone Europe’s revenue growth improved by 1.5ppts on a reported basis and by 0.3ppts on an underlying basis; given the deterioration in macroeconomic conditions, this is a strong result, and Vodafone extended its outperformance of competitors

Margins were weaker with European EBITDA margin dropping about 1ppt on an underlying basis in H2. SAC/SRCs were for once well under control, but a very small rise in ‘other’ costs pushed margins down; with revenue growth well below inflation, maintaining margins is a massive challenge

The Group’s strategy continues to be sound, and is validated by its competitive outperformance, but market conditions are likely to keep its revenue growth negative and margins slightly declining for the next year at least

  • Vodafone
Mobile, Telecoms 22 May 2012
Vodafone FY 2010/11 results: performing well in a weak market, smartphones helping

Vodafone Europe’s service revenue growth dipped by 1ppt in the March 2011 quarter, but nearly all of this was due to regulated MTR cuts, with its competitive performance actually improving again

The combined Europe and common cost EBITDA margin was actually held flat in H2 10/11 on H2 09/10, aided by some heroic (and, frankly, uncharacteristic) cost cutting efforts, with Vodafone’s cost profligacy days apparently behind it

The outlook for next quarter is poor due to the UK MTR cut, but we then expect revenue growth to steadily improve for the rest of the year, with smartphone-driven data growth a help rather than a hindrance

  • Vodafone
Mobile, Telecoms 17 May 2011
Vodafone drops Carphone Warehouse, but who will fall further?

In a fit of pique over increasing subsidies, Vodafone UK is dropping Carphone Warehouse (CPW) as a distributor, and moving exclusively to Phones4U with lower subsidy levels and volume guarantees, while Orange is reportedly also considering its position with CPW

  • Vodafone
  • Orange
  • Carphone Warehouse
Telecoms, Mobile 14 October 2006
Vodafone December quarter update: inflection attained

Vodafone’s European revenue growth improved by 1.4 percentage points in the December 2009 quarter to reach -3.2%, the first improvement since the start of the economic slowdown in 2008

While data revenue is growing fast in absolute terms, its contribution to growth is flat to slightly down, with the main driver being more traditional services improving due to the recovery in year-on-year GDP growth

We expect revenue growth to continue to improve as economic comparables improve, with a return to positive growth likely by the end of 2010

  • Vodafone
Telecoms, Fixed Line, Non-UK Telecoms 4 February 2010

Pages