31st Jan 2007 07:02
Vodafone Group Plc31 January 2007 31 January 2007 VODAFONE REACHES 200 MILLION CUSTOMERS Vodafone Group Plc ("Vodafone") today announces key performance indicators forthe quarter ended 31 December 2006. The main highlights are: * Organic growth of 6.1% for the quarter in proportionate mobile revenue, with proportionate growth of 0.9% in Europe and 14.4% in EMAPA. Nine months year to date organic growth in proportionate mobile revenue of 6.1% * On a statutory basis, growth in total revenue for the quarter was 5.1%, with organic service revenue growth of 4.8% * 8.7 million proportionate organic net mobile additions for the quarter. Total proportionate mobile customer base at 198.6 million at the end of the quarter after a net reduction of 1.7 million mobile customers from other movements, principally business disposals * Total proportionate mobile customer base over 200 million by the end of January * 2.5 million 3G devices added, bringing total 3G device base to 13.6 million. 3G Broadband through HSDPA available across 21 of the Group's markets and partner networks * Completed disposal of interests in Proximus and Swisscom Mobile with net proceeds of £3.1 billion * Continued execution on revenue stimulation and total communications objectives with Vodafone At Home now launched in seven markets, including five offering DSL services, and Vodafone Office available in 11 markets * Execution of core cost reduction programmes, including IT outsourcing, data centre consolidation, supply chain management and network sharing, all on track * Vodafone re-iterates its current year outlook with the financial performance for the quarter and year to date in line with expectations Arun Sarin, Chief Executive, commented: "These KPIs are very much in line with expectations and show that we arecontinuing to make progress in executing our strategy. I am also pleased toannounce today that we now have 200 million proportionate customers globally andwe are grateful for their confidence in us. This is both an important milestonefor Vodafone and a great achievement by our people." GROUP REVIEW Operating review---------------- There was no significant change in the competitive environment in the quarterwith Europe remaining challenging and the EMAPA region continuing to present asignificant opportunity for growth. The quarter showed continued strongperformances from Spain, Verizon Wireless and several of the Group's emergingmarket operations. Underlying growth trends improved slightly in Italy and theUK, however Germany showed an expected negative impact from tariff changesintroduced in October. Strong customer growth was recorded across many markets with organicproportionate net mobile additions of 8.7 million. This growth reflects bothseasonally high net additions in Europe, particularly in prepaid, and thebenefits of lower average market penetration in EMAPA. The closing proportionatecustomer base of 198.6 million is over 20% higher than the same quarter in theprevious year. With 2.5 million net additions in the quarter, 3G customersreached 13.6 million, including 1.3 million with business devices. HSDPA isavailable in 21 of the Group's markets and partner networks. Organic proportionate mobile revenue growth for the quarter was 6.1% comparedwith the same quarter in the previous year, with organic growth for the ninemonths to 31 December 2006 also 6.1%. Changes in termination rates are estimatedto have reduced organic proportionate mobile revenue growth in the quarter byaround 1.6%. On a statutory basis, total revenue for the quarter increased by 5.1% withorganic service revenue growth for the quarter of 4.8%. Voice revenue increasedby 2.6% on an organic basis, with a 20.3% organic increase in total voice usage,and organic growth in messaging revenue was 6.2%. Data revenue grew by 34.2%organically, primarily from business services and the increasing penetration of3G devices. Revenue stimulation and cost reduction in Europe------------------------------------------------ The Group continues to execute on its strategy of driving fixed to mobilesubstitution and delivering on the total communications needs of its customers.Vodafone At Home and Vodafone Office products and services are now available infive and eight markets respectively in Europe. In Germany, registered VodafoneZuhause customers reached two million in January, with successful promotions inItaly increasing active Vodafone Casa customers to 0.6 million at the end of thequarter. Progress on several major cost reduction initiatives in Europe has beenannounced recently, principally relating to the outsourcing of IT applicationdevelopment and maintenance, data centre consolidation, supply chain managementand a business transformation programme to implement a single, integratedoperating model using one ERP system. These multi-year initiatives are now wellunder way and are expected to deliver significant benefits in the medium term. The Group continues to review opportunities for network sharing to reduce thetotal cost of network ownership. During the quarter, the Group announced networksharing arrangements for 2G and 3G in rural areas of Spain, following on fromprevious announcements of an agreement in Australia and of an ongoing review inthe Czech Republic, both within the EMAPA region. As a result, for the total of the Europe region (excluding Arcor) and commonfunctions, the Group continues to expect capitalised fixed asset additions to be10% of revenue in the year ending 31 March 2008 and operating expenses to bebroadly stable for that year compared with the year ending 31 March 2006 on anorganic basis, excluding the potential impact from developing and delivering newservices and from any business restructuring costs. Delivering strong growth in emerging markets-------------------------------------------- Strong growth in the Group's emerging market operations continued in the quarterwith organic service revenue growth of 29.7% in Romania, 42.0% in Egypt and22.6% in South Africa, with customer growth remaining the principal driver. TheGroup's recent acquisition in Turkey continues to see strong growth in revenuedriven by the execution of a turnaround plan outlined at the EMAPA Analyst andInvestor day in December. Innovate and deliver on our customers' total communications needs----------------------------------------------------------------- HSDPA deployment continues on a fast track basis with the expectation ofachieving coverage in Europe equivalent to the Group's existing 3G coverage bythe middle of the 2007 calendar year. Complementary to its mobile broadband service offerings, the Group continues todevelop its presence in the home and the office through the deployment of DSLservices. With the exception of Arcor in Germany, the provision of DSL servicesto date has been on a wholesale basis. The Group continues to look at the mostefficient ways to deliver broadband services to customers and will take acountry by country approach dependent on the differing operating conditions inany given market. Actively manage our portfolio to maximise returns------------------------------------------------- As well as completing the sale of its 25% interest in Proximus to Belgacom, theGroup announced and completed the sale of its 25% interest in Swisscom Mobile toSwisscom during the quarter. The sale consideration of approximately £1.8billion for the Swisscom Mobile interest implied an Enterprise Value to EBITDAmultiple of 9.1x for the financial year ending 31 March 2007. In both instances,the Board considered that the Group was not the most appropriate holder of aminority interest in the longer term and, together with an attractive valuation,determined that capital would be better deployed elsewhere. The Group also announced the acquisition of a further 4.8% in Vodafone Egypt,bringing its total ownership to 54.9% and increasing the Group's exposure tothis high growth market. In December, the Group announced that it is considering the acquisition of acontrolling interest in Hutchison Essar Limited in India. This potentialopportunity is in line with its objective of obtaining control of a mobilecompany in the important Indian market. The Board remains committed to onlypursuing transactions that create value for shareholders and that meet theGroup's stated financial investment criteria. Outlook------- The Group is reiterating its outlook statement for the year ending 31 March2007. Organic growth in proportionate mobile revenue is expected to be in therange of 5% to 6.5%. The proportionate mobile EBITDA margin is expected to bearound 1 percentage point lower than the year ending 31 March 2006 on an organicbasis, excluding the impact of any one-off business restructuring costs. Capitalised fixed asset additions are anticipated to be in the range of £4.2billion to £4.6 billion with free cash flow in the range of £4.7 billion to £5.2billion, after £0.5 billion of tax payments and associated interest in respectof the settlement of a number of long standing tax issues and after the impactof lower expected dividends from associates due to the disposal of interests inProximus and Swisscom Mobile. EUROPE A summary of organic change in customers, usage and revenue for the quarterended 31 December 2006 compared to the same quarter in the previous year is setout below: -------------------------------------------------------------------------------- Germany Italy Spain UK Arcor Other EuropeOrganic change(1) % % % % % % %--------------------------------------------------------------------------------Closing mobile proportionate customers(2) 5.0 10.6 11.9 3.8 n/a 7.5 7.3 Mobile voice usage(2) 23.4 9.8 28.3 13.9 n/a 11.4 17.0 Service revenue(3) (4.3) 1.7 12.7 2.6 9.7 (2.7) 2.1 Underlying service revenue(3)(4) (0.5) 4.9 18.1 3.3 9.7 4.7 5.8-------------------------------------------------------------------------------- Notes: (1) The percentage movements in organic growth are presented to reflect operating performance on a comparable basis, adjusting for acquisitions and disposals and exchange rate movements (2) Excludes the effect of the disposal in Sweden (3) Excludes the effect of the disposal in Sweden and exchange rate movements (4) Excludes the estimated impact of termination rate reductions and from adjustments to revenue for certain arrangements that are now presented net of associated direct costs Customers--------- The Europe region recorded 3.2 million proportionate organic net customeradditions compared to 2.7 million in the same quarter in the previous year. Netadditions were strong across the Group's major markets with 0.7 million inGermany, 0.8 million in Italy, 0.4 million in Spain and 0.7 million in the UK,partly reflecting seasonally high prepaid activity. In particular, the UKbenefited from more competitive offerings during the period and Italy from newcommercial initiatives introduced in the summer. The total proportionate basereached 98.8 million compared with 93.7 million at the end of the same quarterin the previous year. Annualised contract churn has fallen year on year in most of the major marketswithin the Europe region due to continued focus on targeted customer retentionactivities. Increased competition and the ongoing effect of customerself-upgrades and SIM only promotions has resulted in higher annualised prepaidchurn year on year in many markets although prepaid churn reduced year on yearin Germany due to a regulatory driven change in disconnection policy. As aresult, the Group remains focused on maintaining prepaid customer acquisitioncosts at low levels. Usage----- Total voice usage increased by 17.0% on an organic basis compared with the samequarter in the previous year mainly due to outgoing call volumes increasing by22.1%. This was driven by an increase in the customer base within the region andan increase in outgoing minutes per customer, particularly in Germany, Spain andthe UK. Voice usage growth in Germany and Spain remained strong due to usage stimulationtariffs and promotions that are particularly focused on encouraging calls toother Vodafone numbers and fixed lines. In the UK, a significant increase inoutgoing voice usage per customer resulted from a prepaid offering that providesfree weekend calls if customers spend a minimum amount during weekdays, with 1.7million prepaid customers opting into this plan. Italy recorded continued growthin total voice usage although at a lower level than the previous quarter due tothe strong success of its summer promotion. Revenue------- Organic service revenue growth of 2.1% for the quarter was driven by theincrease in the customer base and total usage per customer, partially offset bypricing pressures in many of the markets within the Europe region and the effectof termination rate reductions. Organic growth in service revenue for thequarter to 30 September 2006 was 1.0%. The improvement in the current quarterwas largely due to Italy, which recorded service revenue growth of 1.7% comparedto a decline of 3.4% in the previous quarter, principally due to a lower impactfrom termination rate reductions. Voice revenue decreased by 0.5% on an organic basis compared with the samequarter in the prior year. Outgoing voice revenue increased by 2.7% organically,with growth in voice minutes largely offset by price declines. Incoming voicerevenue declined by 6.6% on an organic basis, principally due to a 23.4% declinein incoming revenue in Germany as a result of regulated termination ratereductions in December 2005 and November 2006. This was the primary reason foran overall decline in voice revenue in Germany. The Europe region recorded a 3.7% organic increase in messaging revenue in thequarter principally due to increases of 17.1% and 13.9% in Spain and the UKrespectively, where the larger customer bases and competitively priced offeringsstimulated higher usage. Successful usage stimulation in Italy improved the rateof increase year on year in messaging revenue to 7.3% compared to the previousquarter growth of 2.6%, which was also impacted by the strong summer voicepromotion. Messaging revenue in Germany has been affected by the strong growthin voice usage which, together with the timing of messaging promotions,contributed to the decline compared with the same quarter in the previous year. Data revenue increased by 32.2% on an organic basis, primarily due to growth inbusiness services and increasing penetration of 3G devices. Registered 3Gdevices increased by 6.9 million from the same period in the previous year to12.5 million as at 31 December 2006. In particular, Germany experienced growthin data revenue of 57.7%, both from consumer services through Vodafone live! andfrom increased business connectivity. Underlying organic service revenue growth of 5.8% was broadly stable comparedwith the previous quarter. The UK delivered underlying improvements fromcontinued leadership in the business segment and more competitive marketofferings. Italy also improved as a result of new commercial initiativesintroduced in the first half of the current financial year. As expected, Germanystarted to show a negative impact from tariff changes in October, resulting in ayear on year decline in underlying service revenue of 0.5%, compared with growthof 0.8% in the previous quarter. Whilst underlying growth in Spain remainsstrong, the lower rate of growth compared with the previous quarter reflectedincreased competition, principally from the established operators. Arcor generated service revenue growth in the quarter of 9.7% supported by a 70%increase in the DSL customer base to over 1.8 million since the same quarter inthe previous year. Service revenue growth was lower than the previous quarter asa result of increasing competition. Acquisition and retention costs------------------------------- Net acquisition and retention costs as a percentage of service revenues werebroadly stable compared with the same quarter in the previous year for theEurope region. Higher acquisition volumes, principally in prepaid, offset loweraverage unit acquisition costs whilst both retention volumes and average unitretention costs were lower compared with the same quarter in the previous year.Net acquisition and retention costs as a percentage of service revenues wereslightly lower year on year in Spain and the UK, stable in Germany and slightlyhigher in Italy. EMAPA A summary of the organic change in customers, usage and revenue for the quarterended 31 December 2006 compared to the same quarter in the previous year is setout below: -------------------------------------------------------------------------------- Eastern Middle East Associates Europe Africa & Pacific and EMAPA Asia investments Organic change(1) % % % % %--------------------------------------------------------------------------------Closing mobile proportionate customers(2) 21.0 40.3 7.0 14.4 20.8 Mobile voice usage(3) 35.4 38.4 13.3 n/a 31.2 Service revenue(3) 19.7 29.1 9.1 n/a 20.5-------------------------------------------------------------------------------- Notes: (1) The percentage movements in organic growth are presented to reflect operating performance on a comparable basis, adjusting for acquisitions and disposals and exchange rate movements (2) Excludes the effect of the acquisitions in Turkey, Czech Republic and the disposals in Belgium and Switzerland and assumes current period ownership levels in both periods for stake increases in South Africa and Egypt (3) Excludes the effect of the acquisitions in Turkey, India and the Czech Republic and, where relevant, exchange rate movements and assumes current period ownership levels in both periods for stake increases in South Africa The EMAPA region recorded 5.6 million proportionate organic net customeradditions in the quarter. Customer growth was strong across most of the region,in particular in Egypt, the US, South Africa and India, with lower net additionsin the Pacific area consistent with higher penetration in those markets. The total proportionate base reached 99.8 million compared with 70.9 million forthe same quarter in the previous year, reflecting both strong growth and thebenefit of new businesses. Organic growth in service revenue was 20.5%, driven by a 26.8% increase incontrolled average customers, which was partly offset by declining ARPU in somemarkets as a result of the increasing proportion of lower usage prepaidcustomers. Eastern Europe-------------- Organic growth in service revenue of 19.7% for Eastern Europe for the quarterwas primarily due to customer growth and compared with 22.0% growth in theprevious quarter. The principal driver of organic growth in Eastern Europe continued to beRomania, where the customer base has now reached 7.7 million. Organic servicerevenue growth of 29.7% in Romania continued to be driven substantially bycustomer growth although ARPU has also increased slightly year on year due tousage stimulation and continued leadership in the business segment. The Group's acquisition in Turkey also continued to perform well. Improvementsto network coverage and quality have supported a price increase during thequarter, which has lowered the rate of customer and usage growth but maintainedongoing strong revenue growth. Middle East, Africa and Asia---------------------------- In Middle East, Africa and Asia, organic growth in service revenue for thequarter was 29.1%, unchanged from the previous quarter. Service revenue growthcontinued to be driven by strong increases in customers. Egypt reported organic growth in service revenue of 42.0%, which included a 7.2%rise in blended ARPU resulting from increased prepaid usage. On 22 January 2007Egypt acquired a 3G licence for approximately £300 million, plus an annualpercentage of revenue, to further enhance its products and services and provideadditional capacity, as well as agreeing an extension of the 2G licence until2022. Vodacom, the Group's joint venture based in South Africa, reported organicgrowth in service revenue of 22.6% for the quarter due to a 32.4% increase inaverage customers year on year, reflecting the successful launch of several newofferings and promotions and strong growth in its investments outside SouthAfrica. Bharti Airtel, the Group's joint venture in India, reported strong growth incustomers and total revenue. Total revenue growth of 62% resulted from thecustomer base being 96% higher year on year. Pacific------- The Pacific area delivered 9.1% organic growth in service revenue compared with10.3% for the previous quarter. Organic service revenue growth in New Zealandimproved to 7.0% from broadly stable in the previous quarter due to the timingof termination rate reductions in the previous year. In Australia, continuedfocus on higher value customers delivered organic service revenue growth of10.6%, including further improvement in blended ARPU. Associates and investments-------------------------- The Group's associates and investments added 1.7 million proportionate organiccustomers in the quarter although the disposal of interests in Proximus andSwisscom Mobile reduced total proportionate customers by 2.2 million. In the US, Verizon Wireless reported record quarterly customer growth of over2.3 million net additions, with the Group's proportionate share at over 1million for the first time. This ongoing strong customer growth, due in part tomarket leading annualised blended churn of 13.7%, and continued success indriving the uptake of non-voice services, led to organic service revenue growthof 17.1% for the quarter. Proportionate net additions for SFR were 138,000, bringing the proportionatecustomer base to 7.9 million. SFR reported broadly stable service revenue forthe quarter compared with the same quarter in the previous year, reflecting theintense competitive environment in France. - ends - For further information: Vodafone Group Investor Relations Media RelationsTel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444 Notes to Editors 1. The Group's outlook for the financial year ending 31 March 2007 is contained in Vodafone's interim results announcement for the six months ended 30 September 2006. 2. At the country level, service revenue growth is calculated in local currency and before the elimination of intercompany revenue. For the segments within Europe and EMAPA, service revenue growth is calculated using constant exchange rates and after the elimination of trading between Group companies within the segment. The basis of calculation for organic growth is included in the Group's Annual Report for the year ended 31 March 2006. 3. Vodafone, Vodafone live!, Vodafone Zuhause and Vodafone Casa are trademarks of the Vodafone Group. CAUTIONARY STATEMENT This press release contains "forward-looking statements" with respect toVodafone's anticipated benefits from certain cost reduction initiatives,expected capitalised fixed asset additions and operating expenses, anticipatedtiming for the deployment of new services and the Group's outlook for the yearending 31 March 2007, including in particular statements with respect to growthin revenue, expected changes in margins, expected capitalised fixed assetadditions and expected free cash flow for that period. By their nature,forward-looking statements are inherently predictive, speculative and involverisk and uncertainty because they relate to events and depend on circumstancesthat will occur in the future. There are a number of factors that could causeactual results to differ materially from those expressed or implied by theseforward-looking statements. These factors include, but are not limited to:changes in economic or political conditions in markets served by operations ofthe Group that would adversely affect the level of demand for mobile services;greater than anticipated competitive activity from both existing competitors andnew market entrants; slower than expected customer growth and reduced customerretention; changes in the spending patterns of new and existing customers;changes in the regulatory framework in which the Group operates, includingpossible action by regulators in markets in which the Group operates; changes inexchange rates; final resolution of open issues which might impact the Group'seffective tax rate; the Group's ability to achieve meaningful cost savings andrevenue improvements as a result of its cost reduction including outsourcinginitiatives; the timing and impact of investment in network capacity and thedeployment of new technologies; and changes in any other factors described under"Cautionary Statement Regarding Forward-Looking Statements" in the Group'sAnnual Report for the financial year ended 31 March 2006. Furthermore, a reviewof the reasons why actual results and developments may differ materially fromthe expectations disclosed or implied within forward-looking statements can befound under "Risk Factors, Trends and Outlook - Risk Factors" in the Group'sAnnual Report for the financial year ended 31 March 2006. All subsequent writtenor oral forward-looking statements attributable to Vodafone or any other memberof the Group or persons acting on their behalf are expressly qualified in theirentirety by the factors referred to above. No assurances can be given that theforward-looking statements in this document will be realised. Neither Vodafonenor any of its affiliates intends to update these forward-looking statements. KEY PERFORMANCE INDICATORS MOBILE TELECOMMUNICATIONS BUSINESSES PROPORTIONATE MOBILE CUSTOMERS - 1 APRIL 2006 TO 31 DECEMBER 2006 -------------------------------------- ------------------------------------ SIX MONTHS TO 30 SEPTEMBER 2006 QUARTER TO 31 DECEMBER 2006 -------------------------------------- ------------------------------------COUNTRY PERCENTAGE AT NET OTHER AT NET OTHER AT PREPAID OWNERSHIP 1 APR ADDITIONS MOVEMENTS 30 SEP ADDITIONS MOVEMENTS 31 DEC (3) (1) 2006 2006 (2) 2006 ('000s) ('000s) ('000s) ('000s) ('000s) ('000s) ('000s) (%) -------------------------------------- ------------------------------------Europe: Germany 100.0% 29,191 431 - 29,622 709 291 30,622 54.4%Italy 76.9% 18,490 847 - 19,337 792 - 20,129 92.1%Spain 100.0% 13,521 1,087 (584) 14,024 440 - 14,464 45.9%UK 100.0% 16,304 (17) - 16,287 652 - 16,939 60.6% -------------------------------------- ---------------------------- 77,506 2,348 (584) 79,270 2,593 291 82,154 65.4%Albania 99.9% 772 96 - 868 51 - 919 96.9%Greece 99.9% 4,471 281 3 4,755 200 - 4,955 68.5%Ireland 100.0% 2,075 44 - 2,119 59 - 2,178 74.0%Malta 100.0% 175 9 - 184 4 - 188 89.9%Netherlands 100.0% 3,909 (15) - 3,894 66 (143) 3,817 46.9%Portugal 100.0% 4,276 306 (145) 4,437 181 - 4,618 79.5% -------------------------------------- ---------------------------- 15,678 721 (142) 16,257 561 (143) 16,675 69.1% -------------------------------------- ----------------------------Total Europe 93,184 3,069 (726) 95,527 3,154 148 98,829 66.0% -------------------------------------- ----------------------------EMAPA: Eastern Europe: Czech Republic 100.0% 2,214 97 - 2,311 102 - 2,413 47.2%Romania 100.0% 6,384 771 - 7,155 562 - 7,717 66.5%Hungary 100.0% 2,063 (13) - 2,050 84 - 2,134 63.1%Turkey 100.0% - 1,251 10,930 12,181 567 - 12,748 90.7%Poland 19.6% 1,918 264 - 2,182 173 - 2,355 59.3% -------------------------------------- ---------------------------- 12,579 2,370 10,930 25,879 1,488 - 27,367 71.0%Middle East, Africa & Asia: Egypt 54.9% 3,314 660 - 3,974 402 403 4,779 92.7%Kenya 35.0% 1,380 245 - 1,625 242 - 1,867 98.3%South Africa (4)(5) 50.0% 10,968 2,128 (1,191) 11,905 1,083 - 12,988 89.3%India 10.0% 1,958 748 - 2,706 491 - 3,197 87.2% -------------------------------------- ---------------------------- 17,620 3,781 (1,191) 20,210 2,218 403 22,831 89.4%Pacific: Australia 100.0% 3,177 13 - 3,190 109 (21) 3,278 73.5%New Zealand 100.0% 2,068 43 - 2,111 89 - 2,200 76.4%Fiji 49.0% 101 21 - 122 13 - 135 95.2% -------------------------------------- ---------------------------- 5,346 77 - 5,423 211 (21) 5,613 75.7%Associates & Investments: United States (5) 45.0% 23,530 1,657 4 25,191 1,039 - 26,230 5.4%Other(2) 18,312 1,026 - 19,338 613 (2,237) 17,714 76.4% -------------------------------------- ----------------------------Total 41,842 2,683 4 44,529 1,652 (2,237) 43,944 65.3% -------------------------------------- ----------------------------Total EMAPA 77,387 8,911 9,743 96,041 5,569 (1,855) 99,755 69.5% -------------------------------------- ----------------------------Total 170,571 11,980 9,017 191,568 8,723 (1,707) 198,584 68.9% -------------------------------------- ---------------------------- Notes: (1) All ownership percentages are stated as at 31 December 2006 and exclude options, warrants or other rights or obligations of the Group to increase or decrease ownership in any venture with the exception of India, where the Group's 10% economic interest represents a 5.6% direct interest in Bharti Airtel Limited and a subscription for convertible debentures in Bharti Enterprises Private Limited, representing a 4.4% indirect economic interest in Bharti Airtel Limited. Ownership interests have been rounded to the nearest tenth of one percent. (2) Other movements for the quarter ended 31 December 2006 represents the acquisition of minority interests in Vodafone Netherlands and Vodafone Egypt and the completion of the sales of the Group's associates in Belgium on 3 November 2006 and Switzerland on 20 December 2006. It also includes the impact of a regulatory driven change in the prepaid disconnection policy for Germany, the disconnection of inactive prepaid SIM cards in the Netherlands and the disposal of a service provider customer base in Australia. (3) Prepaid customer percentages are calculated on a venture basis. At 31 December 2006, there were 600.0 million venture customers. (4) Customers in South Africa refers to the Group's interests in Vodacom Group (Pty) Limited and includes customers in South Africa, the Democratic Republic of Congo, Lesotho, Mozambique and Tanzania. (5) The Group's proportionate customer base in South Africa and Verizon Wireless has been adjusted for their proportionate ownership of their customer base across all their network interests of approximately 92.1% and 98.6%, respectively, at 31 December 2006. In the absence of acquired interests, this proportionate ownership will vary slightly from quarter to quarter depending on the underlying mix of net additions across each of their networks. VODAFONE LIVE! ACTIVE DEVICES ------------------------------------ --------------------------- SIX MONTHS TO 30 SEPTEMBER 2006 QUARTER TO 31 DECEMBER 2006 ------------------------------------ ---------------------------COUNTRY AT NET AT NET AT 1 APR 2006 ADDITIONS 30 SEPT 2006 ADDITIONS 31 DEC 2006 ('000s) ('000s) ('000s) ('000s) ('000s)Europe: Germany 6,214 27 6,241 211 6,452 Italy(1) 4,097 631 4,728 758 5,486 Spain 5,514 1,078 6,592 252 6,844 UK 4,181 291 4,472 238 4,710 Other 4,229 658 4,887 298 5,185 ------------------------------------ ---------------------------Total Europe 24,235 2,685 26,920 1,757 28,677 Total EMAPA 2,835 937 3,772 226 3,998 ------------------------------------ ---------------------------Group Statutory Total(2) 27,070 3,622 30,692 1,983 32,675 ------------------------------------ ---------------------------Notes: (1) Under IFRS, Vodafone Italy is treated as a joint venture. The figures in the table above represent the Group's share of Vodafone live! active devices. (2) The table above only includes Vodafone live! customers in the Group's subsidiary and joint venture undertakings. At 31 December 2006, there were an additional 7.2 million (30 September 2006: 6.8 million, 30 June 2006: 6.5 million, 31 March 2006: 5.9 million) registered Vodafone live! venture customers in the Group's associated undertakings. 3G DEVICES ---------------------------------- --------------------------- SIX MONTHS TO 30 SEPTEMBER 2006 QUARTER TO 31 DECEMBER 2006 (RESTATED) ---------------------------------- ---------------------------COUNTRY AT NET AT NET AT 1 APR 2006 ADDITIONS 30 SEPT 2006 ADDITIONS 31 DEC 2006 ('000s) ('000s) ('000s) ('000s) ('000s)Europe: Germany 2,025 699 2,724 571 3,295 Italy(1) 2,250 580 2,830 597 3,427 Spain 902 837 1,739 540 2,279 UK 1,033 315 1,348 111 1,459 Other 1,230 496 1,726 346 2,072 ----------------------------------- --------------------------Total Europe 7,440 2,927 10,367 2,165 12,532 Total EMAPA(3) 416 342 758 290 1,048 ----------------------------------- --------------------------Group Statutory Total(2) 7,856 3,269 11,125 2,455 13,580 ----------------------------------- -------------------------- Consumer devices 7,196 2,923 10,119 2,181 12,300Business devices 660 346 1,006 274 1,280 ----------------------------------- -------------------------- 7,856 3,269 11,125 2,455 13,580 ----------------------------------- -------------------------- Notes: (1) Under IFRS, Vodafone Italy is treated as a joint venture. The figures in the table above represent the Group's share of 3G devices. (2) The table above only includes 3G devices in the Group's subsidiary and joint venture undertakings. At 31 December 2006, there were an additional 2.6 million (30 September 2006: 2.3 million, 30 June 2006: 2.0 million, 31 March 2006: 1.7 million) registered Vodafone live! with 3G and Vodafone Mobile Connect 3G/GPRS data card venture customers in the Group's associated undertakings. (3) With effect from the quarter ended 31 December 2006, 3G devices now include the results of Vodafone Romania and previously reported numbers have been restated to include an additional 135,000 and 222,000 3G devices at 1 April 2006 and 30 September 2006 respectively. AVERAGE MONTHLY MOBILE REVENUE PER USER IN THE QUARTER -------------------------------------------------------------------------------------COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC 2005 2005 2005 2006 2006 2006 2006-------------------------------------------------------------------------------------Europe: Germany Total 24.3 24.4 22.9 21.5 22.1 22.4 20.9(EUR) Contract 39.8 41.0 38.8 37.2 38.4 39.0 36.7 Prepaid 9.2 9.0 8.3 7.5 7.6 7.6 7.0-------------------------------------------------------------------------------------Italy Total 30.4 29.9 27.7 26.4 27.6 27.1 25.8(EUR) Contract 79.4 75.0 73.7 71.0 72.6 68.0 71.1 Prepaid 25.8 25.9 23.5 22.2 23.3 23.2 21.5-------------------------------------------------------------------------------------Spain Total 36.2 37.7 35.3 33.3 35.3 36.4 35.3(EUR) Contract 58.5 60.7 56.3 52.8 54.8 55.2 51.3 Prepaid 15.4 16.2 15.0 13.9 15.0 15.4 16.0-------------------------------------------------------------------------------------UK Total 24.6 25.1 23.8 22.7 23.7 24.5 23.6(GBP) Contract 46.5 47.9 44.8 43.9 45.2 46.5 43.7 Prepaid 9.5 9.9 9.5 8.8 8.9 9.4 9.5-------------------------------------------------------------------------------------Albania Total 2,255 2,534 2,259 2,098 2,122 2,311 2,086(ALL) Contract 18,783 19,815 18,499 16,777 17,240 17,941 16,329 Prepaid 1,680 1,936 1,701 1,593 1,606 1,782 1,605-------------------------------------------------------------------------------------Greece Total 32.2 34.2 31.3 29.8 31.1 31.0 27.6(EUR) Contract 65.1 69.7 64.2 61.5 65.6 66.8 61.6 Prepaid 15.1 15.7 14.1 13.4 13.7 13.4 11.4-------------------------------------------------------------------------------------Ireland Total 51.4 53.1 50.2 48.6 48.8 46.9 45.6(EUR) Contract 101.9 107.8 99.9 99.3 102.8 99.4 94.5 Prepaid 32.1 32.6 31.6 30.0 29.3 28.0 27.9-------------------------------------------------------------------------------------Malta Total 14.0 16.2 13.0 12.1 14.7 16.6 12.6(MTL) Contract 74.6 91.4 61.8 54.4 72.3 87.1 52.6 Prepaid 7.4 7.8 7.3 6.9 7.4 7.9 7.3-------------------------------------------------------------------------------------Netherlands Total 37.1 36.6 34.5 33.6 35.7 36.9 31.7(EUR) Contract 69.5 68.6 64.7 61.3 63.5 64.6 52.0 Prepaid 11.3 11.0 9.8 9.2 10.1 10.4 9.8-------------------------------------------------------------------------------------Portugal Total 26.4 27.1 24.0 23.3 23.5 24.4 22.8(EUR) Contract 67.3 69.8 61.9 62.4 62.2 62.8 57.8 Prepaid 14.3 14.7 13.4 12.9 13.0 13.9 13.2-------------------------------------------------------------------------------------EMAPA Subsidiaries: Australia Total 47.8 48.2 51.4 47.9 49.4 52.4 54.0(AUD) Contract 92.8 93.6 94.3 92.0 92.7 96.4 98.8 Prepaid 26.7 31.1 35.0 32.0 33.9 36.2 37.2-------------------------------------------------------------------------------------Czech Total 680 679 679 644 674 670 658Republic (CZK) Contract 1,029 1,017 1,015 951 978 966 946 Prepaid 340 342 337 311 331 334 331-------------------------------------------------------------------------------------Egypt Total 91.4 89.4 74.1 79.0 79.4 88.1 79.4(EGP) Contract 268.6 283.9 274.1 289.3 292.1 309.7 289.9 Prepaid 60.7 62.4 52.0 56.0 57.1 66.7 61.4-------------------------------------------------------------------------------------Hungary Total 5,321 5,153 4,885 4,647 5,066 5,339 5,171(HUF) Contract 11,302 11,264 9,666 8,809 9,129 9,097 8,529 Prepaid 3,391 3,046 3,043 2,887 3,125 3,359 3,250-------------------------------------------------------------------------------------New Zealand Total 50.7 51.0 51.2 51.2 46.6 46.6 50.7(NZD) Contract 138.9 139.7 137.2 138.5 126.1 125.3 128.9 Prepaid 25.9 25.6 25.9 25.7 23.2 22.5 23.7-------------------------------------------------------------------------------------Turkey(1) Total N/A N/A N/A N/A N/A 16.5 14.4(TRY) Contract N/A N/A N/A N/A N/A 31.4 28.2 Prepaid N/A N/A N/A N/A N/A 14.8 12.9-------------------------------------------------------------------------------------Romania Total 14.9 15.9 15.4 13.9 15.2 15.9 15.6(USD) Contract 30.2 31.1 29.5 27.0 29.5 30.8 30.6 Prepaid 6.3 7.1 7.0 6.0 6.7 7.3 7.0------------------------------------------------------------------------------------- Note: (1) On 24 May 2006, the Group acquired substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a result, average monthly revenue per user in the quarter has only been published with effect from the quarter ended 30 September 2006. MOBILE NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE(1) -------------------------------------------------- QUARTER TO 31 DECEMBER 2006 --------------------------------------------------COUNTRY MESSAGING DATA TOTAL Germany 14.5% 8.4% 22.9%Italy(2) 13.9% 4.8% 18.7%Spain 9.6% 5.7% 15.3%UK 16.6% 6.6% 23.2% --------------------------------------------------Group Statutory Total 13.6% 5.3% 18.9% -------------------------------------------------- Notes: (1) Service revenue from the mobile telecommunications businesses excludes fixed line and DSL revenues. (2) Under IFRS, Vodafone Italy is treated as a joint venture. HISTORIC MOBILE NON-VOICE SERVICES INFORMATION ------------------------------------------------------------- NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE(1) IN THE QUARTER TO ------------------------------------------------------------- 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DECCOUNTRY 2005 2005 2005 2006 2006 2006 2006 -------------------------------------------------------------Germany 19.3% 19.5% 20.4% 21.7% 21.2% 21.6% 22.9%Italy(2) 14.9% 16.8% 17.4% 18.0% 17.3% 17.5% 18.7%Spain 13.7% 14.2% 14.8% 15.1% 15.7% 14.7% 15.3%UK 19.3% 19.7% 20.7% 21.3% 20.9% 21.7% 23.2% -------------------------------------------------------------Group Statutory Total 16.2% 16.6% 17.2% 17.8% 17.4% 17.8% 18.9% -------------------------------------------------------------Notes: (1) Service revenue from the mobile telecommunications businesses excludes fixed line and DSL revenues. (2) Under IFRS, Vodafone Italy is treated as a joint venture. MOBILE CUSTOMER CHURN ------------------------------------------------------------ ANNUALISED CHURN INFORMATION IN THE QUARTER TO ------------------------------------------------------------COUNTRY 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC 2005 2005 2005 2006 2006 2006 2006 ------------------------------------------------------------Germany (1) Total 17.3% 19.7% 21.2% 22.6% 20.7% 22.1% 20.1% Contract 13.1% 14.3% 16.8% 16.7% 14.6% 13.5% 15.7% Prepaid 21.1% 24.6% 25.2% 27.7% 26.0% 29.5% 23.9% ------------------------------------------------------------Italy Total 17.3% 18.7% 19.1% 19.5% 20.8% 21.7% 19.4% Contract 14.9% 14.5% 16.6% 14.5% 17.2% 13.6% 14.8% Prepaid 17.5% 19.1% 19.3% 19.9% 21.1% 22.4% 19.8% ------------------------------------------------------------Spain (2) Total 21.7% 20.7% 20.6% 20.6% 20.5% 37.0% 23.4% Contract 13.6% 12.5% 13.9% 14.1% 12.3% 13.4% 15.3% Prepaid 29.0% 28.1% 26.9% 26.9% 28.9% 62.5% 32.8% ------------------------------------------------------------UK Total 32.4% 33.1% 31.9% 31.2% 32.8% 37.6% 35.4% Contract 23.2% 21.6% 20.2% 21.2% 20.1% 18.8% 17.9% Prepaid 38.3% 40.5% 39.5% 37.5% 40.9% 49.9% 47.0% ------------------------------------------------------------ Note: (1) The customer churn for Germany for the quarter ended 31 December 2006 benefited from a regulatory driven change in the prepaid disconnection policy, which reduced disconnections by 291,000 in the quarter. The underlying prepaid customer churn, excluding this change, was 31.1% and total churn was 24.0%. (2) The customer churn for Spain for the quarter ended 30 September 2006 includes the effect of 584,000 disconnections following a change in the application of disconnection policies. The underlying customer churn, excluding these disconnections, was 20.1%. ACTIVE MOBILE CUSTOMERS ------------------------------------------------------------- ACTIVE CUSTOMERS(1) AT -------------------------------------------------------------COUNTRY 30 JUN 30 SEPT 31 DEC 31 MAR 30 JUN 30 SEP 31 DEC 2005 2005 2005 2006 2006 2006 2006 -------------------------------------------------------------Germany 93.0% 92.8% 91.5% 90.6% 90.6% 90.6% 89.9%Italy(2) 92.2% 92.8% 92.1% 91.2% 90.9% 90.4% 89.3%Spain 94.8% 95.0% 95.7% 94.3% 93.8% 98.5% 95.1%UK 88.8% 90.6% 90.8% 88.4% 85.7% 86.9% 86.7% -------------------------------------------------------------Group Statutory Total (1) 91.3% 92.2% 92.1% 91.6% 91.0% 91.6% 90.8% ------------------------------------------------------------- Notes: (1) An active customer is defined as one who either pays a monthly fee or has made or received a chargeable event in the last 3 months. The Group's subsidiary in Turkey and the Group's joint ventures in India and Kenya are currently unable to measure active customers under this basis and so have been excluded from the calculation of the Group Statutory Total activity percentages in the table above. (2) Under IFRS, Vodafone Italy is treated as a joint venture. MOBILE VOICE USAGE VOLUMES ------------------------------------------------------------------ TOTAL VOICE MINUTES(1) (MILLIONS) IN THE QUARTER TO ------------------------------------------------------------------COUNTRY 3O JUN 30 SEPT 31 DEC 31 MAR 30 JUN 30 SEPT 31 DEC 2005(5) 2005(5) 2005(5) 2006 (5) 2006 2006 2006 ------------------------------------------------------------------Europe: Germany 6,356 6,428 7,010 6,993 7,614 7,979 8,650 Italy(2) 7,173 7,164 7,521 7,746 7,687 8,050 8,256 Spain 5,648 5,859 5,966 6,362 6,978 7,533 7,655 UK 6,810 6,937 7,167 7,145 7,207 7,579 8,160 Albania 129 144 141 135 148 166 160 Greece 1,757 1,896 1,870 1,869 2,075 2,216 2,113 Ireland 1,263 1,279 1,302 1,289 1,380 1,422 1,462 Malta 42 47 43 43 49 55 50 Netherlands 1,697 1,601 1,755 1,733 1,820 1,711 1,868 Portugal 1,319 1,384 1,386 1,402 1,472 1,606 1,586 Sweden 688 681 753 - - - - ------------------------------------------------------------------Total Europe 32,882 33,420 34,914 34,717 36,430 38,317 39,960 EMAPA Subsidiaries: Australia 1,619 1,818 1,957 2,001 2,006 2,141 2,238 Czech Republic(3) 289 840 899 925 901 868 919 Egypt 1,979 2,341 2,278 2,442 2,869 3,462 3,670 Hungary 741 792 842 866 948 980 1,030 New Zealand 540 559 616 602 597 597 672 Romania(3)(5) 463 1,486 1,630 1,628 1,873 2,059 2,231 Turkey(4) - - - - - 6,451 5,781 ------------------------------------------------------------------ 5,631 7,836 8,222 8,464 9,194 16,558 16,541 Joint Ventures 2,021 1,957 2,598 4,684 5,763 6,387 7,389 ------------------------------------------------------------------TOTAL EMAPA 7,652 9,793 10,820 13,148 14,957 22,945 23,930 ------------------------------------------------------------------Group Statutory Total 40,534 43,213 45,734 47,865 51,387 61,262 63,890 ------------------------------------------------------------------ Notes: (1) The total voice minute information presented in the table above represents the volume of minutes handled by each local network and includes incoming, outgoing and visitor calls. The voice minute information in respect of Germany, Czech Republic and New Zealand reflects minutes billed which are rounded-up under certain tariffs. (2) Under IFRS, Vodafone Italy is treated as a joint venture. The figures in the table above represent the Group's share of the voice minute information. (3) MobiFon S.A. in Romania and Oskar Mobil a.s. in the Czech Republic became subsidiaries on 31 May 2005. Voice minutes in the quarter to 30 June 2005 only include volumes during the month of June 2005. Prior to 31 May 2005, MobiFon S.A. was treated as a joint venture and was previously included within Other Joint Ventures. (4) On 24 May 2006, the Group acquired substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a result, voice minutes in the quarter have only been published with effect from the quarter ended 30 September 2006. (5) During the quarter to 31 December 2006, Vodafone Romania restated usage volumes for all quarters in the prior year. Previous volumes were billed minutes and this has now been correctly stated to network minutes. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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