Vodafone suffered a bad end to 2011 as it registered falls from Barcelona to Sydney in the last quarter.

Group revenues declined 2.3 percent year-on-year to €13.9 billion between October and December.

Falls were felt across the company’s business – Europe suffered a 3.1 percent y-o-y drop while revenues in Africa, the Middle East and Asia Pacific (AMAP) fell 1.5 percent.

The company was particularly badly hit in Italy and Spain – two countries suffering badly from the economic downturn – where revenues fell 5.4 percent and 9.3 percent respectively. Vodafone said market conditions remained difficult.

The news was better elsewhere in Europe, particularly Turkey where Vodafone is growing its customer base. In more established markets of Germany and the UK, the company said growth, which was below one percent in both countries, was thanks to increased data revenues.

“We are continuing to make progress in the key strategic areas of data, enterprise and emerging markets,” said CEO Vittorio Colao.

However, despite growth in some regions – particularly India where revenues were up 6.3 percent – AMAP was also hampered by poor performance. The company said “network and customer service difficulties” were to blame in Australia, for example, while lower inbound roaming revenue was the cause of falling revenues in Egypt.

Nevertheless, the CEO said he remained happy with the company’s broad geographic mix: “It is delivering a resilient overall performance,” he commented.

Data revenue grew by 18.1 percent overall, led by increasing smartphone penetration, and now represents 14.8 percent of total service revenue. Sales from other segments, such as messaging, were also up.

Fixed revenue increased by 3.9 percent and now represents 8.5 percent of total service revenue. Vodafone now has 8.8 million fixed line customers of which 6.4 million have a fixed broadband subscription.

However, this growth was not sufficient to offset a 9.3 percent drop in voice revenues, which makes up roughly 60 percent of revenue overall.

Yet again, these figures from Vodafone show that having a broad geographic mix and growing data revenues do not always translate into increased revenues.

While the effects of consumers in Italy and Spain reining in spending – to name just two European countries suffering from a macroeconomic downturn – are beyond the control of a telco, other factors are not.

It is particularly galling, for example, that Vodafone has had to admit that network and customer service difficulties were to blame in Australia. Such basic mistakes are the kind that Europe’s third-largest telco can ill afford to make.

Investors took a sanguine view as the company’s share price held up, no doubt buoyed bya cash pile that has been boosted by a favourable result in its Indian tax dispute and a €3.3 billion dividend from Verizon Wireless.

News that its merger with Greek mobile operator Wind Hellas has been terminated could also prove to be a blessing in disguise.

More Features

Opinion: Key takeaways from the current IoT hype Opinion: Key takeaways from the current IoT hype By Adrian Baschnonga, Global Telecoms Lead at EY The Internet of Things is maturing rapidly as a widening ecosystem of carriers, technology providers and start-ups look to take advantage of the world... More detail
Orange plays it safe with connected objects, mobile banking focus in new strategic plan Orange plays it safe with connected objects, mobile banking focus in new strategic plan Operators are often referred to as oil tankers – big behemoths that take forever to turn around. More detail
Deutsche Telekom looks to the Netherlands, UK in bid for connected home leadership Deutsche Telekom looks to the Netherlands, UK in bid for connected home leadership Deutsche Telekom is bringing its smart home platform to the Netherlands and UK as it looks to take a lead in the connected home space. More detail
Video: Q&A with Telekom Romania CCO Mathias Hanel at MWC15 Video: Q&A with Telekom Romania CCO Mathias Hanel at MWC15 The CCO of Deutsche Telekom's Romanian subsidiary believes delivering a good customer experience is the key challenge that must be met by telcos. More detail
Video: Q&A with TeliaSonera CCO Helene Barnekow at MWC15 Video: Q&A with TeliaSonera CCO Helene Barnekow at MWC15 TeliaSonera’s Chief Commercial Officer Helene Barnekow said people should think differently about the company as she discussed its new strategy. More detail
    

This website uses cookies to improve your experience. Using our website, you agree to our use of cookies

Learn more

I understand

About cookies

This website uses cookies. By using this website and agreeing to this policy, you consent to SJP Business Media's use of cookies in accordance with the terms of this policy.

Cookies are files sent by web servers to web browsers, and stored by the web browsers.

The information is then sent back to the server each time the browser requests a page from the server. This enables a web server to identify and track web browsers.

There are two main kinds of cookies: session cookies and persistent cookies. Session cookies are deleted from your computer when you close your browser, whereas persistent cookies remain stored on your computer until deleted, or until they reach their expiry date.

Refusing cookies

Most browsers allow you to refuse to accept cookies.

In Internet Explorer, you can refuse all cookies by clicking “Tools”, “Internet Options”, “Privacy”, and selecting “Block all cookies” using the sliding selector.

In Firefox, you can adjust your cookies settings by clicking “Tools”, “Options” and “Privacy”.

Blocking cookies will have a negative impact upon the usability of some websites.

Credit

This document was created using a Contractology template available at http://www.freenetlaw.com.

Other Categories in Features