24th Jul 2006 07:02
Vodafone Group Plc24 July 2006 24 July 2006 VODAFONE REPORTS FIRST QUARTER KPIs Vodafone Group Plc ("Vodafone") today announces key performance indicators forthe quarter ended 30 June 2006. The main highlights are: • Good overall operating performance in challenging markets and in line with expectations • Organic growth of 6.4% for the quarter in total proportionate mobile revenue, with 1.3% growth in Europe and 13.9% in EMAPA. On a statutory basis, growth in total revenue was 9.2%, with organic mobile service revenue growth of 4.5% • 4.5 million proportionate organic net additions, with a further 11.7 million from the acquisition of Telsim in Turkey. Total proportionate customer base now at 186.8 million • Continued growth in 3G in the quarter with 1.3 million 3G devices added. The total 3G device base is now 9.1 million in the Group's subsidiaries and joint ventures and a further 2.0 million in the Group's associates • 3G Broadband through HSDPA now available in 8 of the Group's markets • Over 7 million customers now registered for Vodafone Passport • Vodafone re-iterates its current year guidance. The Group expects organic growth for this financial year in proportionate mobile revenue in the 5% to 6.5% range. Vodafone also expects proportionate mobile EBITDA margin for this financial year to be around 1 percentage point lower than the previous financial year on an organic basis Arun Sarin, Chief Executive of Vodafone, commented: "This is a robust operating performance in testing markets with revenue for thequarter in line with expectations. A number of our EMAPA businesses haverecorded good customer growth and whilst many markets in Europe remain highlycompetitive, we are on track with our revenue and cost initiatives in thisregion." Group review Vodafone saw continued intense competition across Europe during the quarter,particularly in some of its major markets. However, a number of businesseswithin the EMAPA region continue to perform very well, including VerizonWireless in the United States and several of the Group's emerging marketoperations. In order to execute against these trends, the Group recentlyreorganised into three principal business units: Europe, EMAPA and NewBusinesses. Good customer growth was recorded across many of the Group's markets during thequarter, with organic proportionate net customer additions of 4.5 millionrepresenting annualised quarterly growth in customers of 10.6%. With marketpenetration rates now typically over 100% in Western Europe, Vodafone is focusedon stimulating additional revenue streams from existing customers. Organic proportionate mobile revenue growth for the quarter was 6.4% comparedwith the same quarter last year. As a result, Vodafone continues to expectorganic growth in proportionate mobile revenue for the full year to be in the 5%to 6.5% range. Termination rate reductions continue to affect the performance inseveral businesses, most notably Italy. The estimated effect is to reduceorganic proportionate mobile revenue growth in the quarter by approximately 2%. 3G sales continue to develop in line with expectations, with 1.3 million netadditions in the quarter. This brings the closing total at the end of June to9.1 million, including 8.2 million consumer devices. 3G net additions in thequarter are over 90% higher than recorded in the same quarter last year. Datarevenue growth for the Group's mobile businesses in the quarter was 40.2%compared with the same quarter last year. In continuing to improve the serviceoffering, 3G Broadband through HSDPA is now available in 8 of the Group'smarkets bringing enhanced data speeds to customers, with an initial focus onbusiness users. Overall, these key performance indicators are in line with the Group'sexpectations for the full year. The Group anticipates continued investment incustomers together with ongoing operating cost management and therefore expectsthe full year proportionate mobile EBITDA margin to be around 1 percentage pointlower than the previous financial year on an organic basis. Europe The European region recorded 891,000 proportionate organic net customeradditions in the quarter, bringing the total proportionate base to 94.1 million.Registered 3G devices increased by 1.2 million to 8.7 million. Total revenue growth was 0.5%, with 2.0% organic growth in mobile servicerevenue. Service revenue growth has reduced across many markets in the quarterdue to the timing of Easter. Underlying trends for service revenue, excludingthe impact from changes in termination rates and seasonal effects, were similarto the quarter to March in Italy, with a slight improvement in Germany and theUK, and continued strong performance in Spain. The Group's cost initiatives remain on track. In IT application, development andmaintenance, Vodafone expects to sign master service agreements with two vendorsbefore the end of the calendar year and the consolidation of data centres isahead of schedule. The centralisation of network supply chain management is alsoprogressing well with benefits expected in the second half of the currentfinancial year. Germany The German market remains competitive, with net customer additions of 253,000 inthe quarter, increasing closing customers to 29.4 million. An additional 312,0003G devices were registered during the quarter, taking the closing base to2,337,000. Vodafone Germany now has 894,000 Vodafone Zuhause customers, adding446,000 customers during the quarter. Annualised blended churn for the quarter increased to 20.7% from 17.3% for thesame quarter last year, mainly as a result of the increase in prepaid churn from21.1% to 26.0% due to the disconnection of inactive customers arising fromincreased competition in the market. Blended ARPU for the quarter was 9.0% lower than the same quarter last year dueto termination rate cuts in December 2005 and higher prepaid inactivity due tocompetitive pressures, partially offset by strong growth in data revenue. Totalvoice usage increased 19.8% compared with the same quarter last year due to thesuccess of usage stimulation initiatives. Service revenue declined 2.9% compared with the same period last year, as theincrease in the customer base was more than offset by the reduction intermination rates and other factors affecting ARPU, with a decline in voicerevenue of 5.1%. Excluding termination rate cuts, underlying service revenue wasbroadly stable when compared with the same quarter last year. Data revenueincreased by 43.5% as a result of increased penetration of 3G devices and thesuccess of data services including Mobile TV and music, with Vodafone Germanymaintaining its position as the leading mobile operator for full track musicdownloads. Messaging revenue declined 4.7% due to the impact of increased voice,and reduced messaging, promotional activities and revised tariffs for somemachine to machine services in the quarter. Increased gross additions and increased investment in retention activities,targeted at higher value customers, led to net acquisition and retention costsas a percentage of service revenue being slightly higher than the same quarterlast year. Italy The Italian market continues to be highly competitive, with Vodafone Italyregistering 69,000 proportionate net customer additions in the quarter, takingthe total proportionate base to 18.6 million. Closing proportionate 3G devicesincreased by 207,000 to 2,457,000. Vodafone Casa, a tariff option targeted atsubstituting fixed line voice usage for mobile, was successfully launched in thequarter with the strong take up being ahead of expectations. Annualised blended churn for the quarter rose to 20.8% from 17.3% for the samequarter last year, largely driven by prepaid churn increasing from 17.5% to21.1%. This was due to the disconnection of inactive customers driven by anincrease in multiple SIMs arising from competitive pressures. Blended ARPU for the quarter decreased by 9.2% compared with the same quarterlast year, principally as a result of a reduction in termination rates whichtook effect from 1 September 2005, together with the impact from a higher levelof promotional activity, a fall in activity rates as a result of competitivepressures and higher penetration. A number of promotions stimulated underlyingtotal voice usage, which increased by 7.1% compared with the same quarter lastyear. Service revenue declined by 3.4% compared with the same quarter last year as thereduction in termination rates and other factors impacting ARPU more than offsetgrowth in the customer base, with voice revenue declining by 5.9%. Excluding thetermination rate cut, underlying service revenue grew by 2.3%. Messaging revenueincreased by 7.3%, benefiting from the success of promotions in the quarter, anddata revenue grew by 22.4%, following the increased penetration of 3G devicesand data promotions. Net acquisition and retention costs as a percentage of service revenue for thequarter was broadly stable compared with the same period last year, with anincrease in the cost per acquisition and upgrade due to the focus on highervalue customers offset by a reduction in upgrade volumes. Spain The Group continues to perform strongly in Spain, adding a further 428,000customers in the current quarter. This represented growth in the closingcustomer base of 17.8% since 30 June 2005, increasing the total customer base to13.9 million. A strong and successful focus on attracting contract customers ledto 95.2% of the net additions in the quarter being contract customers,increasing the proportion of contract customers in the base to 51%. Vodafonealso continued to be a leader in the 3G market in Spain, with an increase of320,000 in the number of registered 3G devices to 1,222,000 in the quarter. Annualised blended churn for the quarter fell by 1.2 percentage points to 20.5%compared with the same quarter last year. This resulted from a decrease incontract churn to 12.3% reflecting the success of the competitive tariffs andpromotions launched during the year and increased upgrade activity. Prepaidchurn was stable compared with the same quarter last year. Blended ARPU for the current quarter decreased by 2.5% compared with the samequarter last year, driven by the termination rate reduction in November 2005,pricing pressures in the market and the impact of lower spending new customers.Voice usage increased by 23.5% compared with the same quarter last year assistedby new tariffs and promotions launched during the year and the higher averagecustomer base. Service revenue grew by 15.1% compared with the same quarter last year,primarily due to the growth in the customer base, partially offset by the impactof termination rate reductions. Excluding the termination rate cut, underlyingservice revenue grew by 17.3%. Voice revenue increased by 12.5% compared withthe same quarter last year with increased voice usage offset by lower ARPU.Messaging revenue grew by 14.6% reflecting the higher average customer base anddata revenue increased by 62.8%, which benefited from specific promotions andthe increased 3G customer base. Net acquisition and retention costs as a percentage of service revenue increasedin the quarter compared with the same quarter last year due to the increasedlevel of contract additions. UK The UK market continues to be extremely competitive, with Vodafone experiencinga decline in the customer base of 119,000 in the current quarter. This comprised29,000 net additions for contract customers and a decline in prepaid customersof 148,000. Registered 3G devices increased by 18.9% during the quarter to aclosing base of 1,228,000. Annualised blended churn for the quarter has remained stable compared with thesame quarter in the previous year at 32.8%. Contract churn has fallen by 3.1percentage points to 20.1% due to customer relationship management activitiesand an increasing proportion of customers signing up for 18 month contracts.Prepaid churn increased, primarily as a result of the impact of customerself-upgrades. Blended ARPU for the quarter decreased by 3.7% compared with the same quarterlast year, driven primarily by higher inactivity rates in prepaid and lowervoice ARPU, partially offset by increased data ARPU. The lower voice ARPU wasdriven by the launch of promotions and propositions such as Stop the Clock,which successfully contributed to voice usage growth of 5.8%. Service revenue growth was 1.3% compared with the same quarter last year. Thiswas achieved mainly by increases in the average customer base and data revenue,offset by lower voice ARPU. Voice revenue declined very slightly compared to thesame quarter last year as a result of lower voice ARPU, partially compensatedfor by the increased average customer base. Messaging revenue increased 6.6%following the increase in the average customer base and the uptake of messagingadd-on bundles. Data revenue increased by 16.7% compared with the same quarterlast year, resulting from the increase in 3G registered devices and relatedservices, particularly for business customers where Vodafone continues todemonstrate clear market leadership. On 1 July, the UK enhanced the competitiveness of its prepaid service with thelaunch of its Free Weekends offer, which rewards higher than average voice andtext usage. Net acquisition and retention costs as a percentage of service revenue fell thisquarter compared with the same quarter last year, due to fewer gross additionsgenerated at lower unit costs and fewer upgrades. Other European Operations The Group's other European subsidiaries added 260,000 proportionate netadditions, including 162,000 in Greece. Service revenue increased by 8.0% inGreece and 5.8% in Portugal compared with the same quarter last year, withstable service revenue in Ireland and a 2.0% decline in the Netherlands due tocompetitive pressures. The Group's other European subsidiaries representapproximately 14% of Group total revenue for the quarter ended 30 June 2006. EMAPA Vodafone's emerging market operations continue to perform well with strongperformance in Romania, Egypt and South Africa. Organic proportionate net additions of 3,647,000 were recorded for the EMAPAregion, representing annualised quarterly growth in customers of 18.9%, with afurther 11.7 million added through the acquisition of Telsim in Turkey. Thetotal proportionate base increased to 92.7 million by the end of June,representing 49.6% of the Group's total proportionate base. Total revenue growth was 62.2%, with 19.7% organic growth in mobile servicerevenue. Subsidiaries The Group's EMAPA subsidiaries added 974,000 net proportionate organic customersin the quarter. Strong performances were recorded in Egypt and Romania. TheGroup's newly acquired operation in Turkey has performed ahead of expectationssince December and has registered 381,000 net additions in the period fromacquisition on 24 May 2006 to the end of June. Organic mobile service revenue growth for the quarter was 20.6% compared withthe same quarter last year. In Egypt, service revenue increased by 38.6% driven by strong customer growth.Blended ARPU has decreased primarily due to a greater proportion of prepaidcustomers in the base. Service revenue growth of 31.7% in Romania and 16.7% in Australia wasprincipally driven by an increase in the average customer base compared to thesame quarter last year. ARPU also improved in these countries compared with thesame quarter last year due to a focus on higher value customers in Australiaand higher prepaid ARPU in Romania due to increased data usage. In the Czech Republic, where market penetration is over 100%, Vodafone's closingcustomer base is 16% higher than a year ago with ARPU only slightly lower due tocontinued focus on contract customers. Service revenue was broadly stablecompared to the same quarter last year in New Zealand, due to the impact ofincreased competition and significant reductions in termination rates. Joint Ventures The Group's other joint ventures in the EMAPA region reported 1,377,000proportionate organic net customer additions in the quarter with 761,000proportionate net additions from Vodacom, the Group's joint venture in SouthAfrica. Organic mobile service revenue growth for the quarter was 18.4% compared withthe same quarter last year, including growth of 19.8% in South Africa driven bystrong customer growth. The Group's joint venture in India, Bharti Airtel, willreport results for the quarter to June on 26 July. Associates and investments The Group's associates and investments added 1,296,000 proportionate organiccustomers in the quarter. Verizon Wireless registered net additions of over 1.8 million in the quarterwith the Group's proportionate share at 807,000. Verizon Communications will bereporting its interim results and those of Verizon Wireless on 1 August. Vivendiwill be reporting its first half 2006 revenue and those of SFR on 27 July andinterim results on 7 September. New Businesses In its presentation to investors and analysts on 30 May, the Group outlined itsplans for developing new and additional revenue streams, particularly in itsmore mature markets where penetration is already over 100%. The New Businessesunit was, therefore, established to deliver new communications services tocustomers that address the converging areas of mobile, broadband and theinternet. The Group's initial focus in this area is on extending Vodafone'sservice offerings in the home and at the office to meet customers growing voiceand broadband needs, including the provision of DSL, through a mobile centricapproach. The first market to launch home based services was Germany through its VodafoneZuhause proposition. With 894,000 registered customers by the end of June,Vodafone Germany is in the process of adding DSL as a complementary service. Thesecond key market to offer home based services is Italy, which launched VodafoneCasa in May and initial take up has been strong. The Group expects to begin to offer similar services in the majority of itsEuropean markets during this financial year and several announcements areplanned for the months ahead. - ends - For further information: Vodafone Group Investor Relations Media RelationsTelephone: +44 (0) 1635 664447 Telephone: +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 preliminary results announcement for the year ended 31 March 2006. This press release contains forward-looking statements which are subject to risks and uncertainties because they relate to future events. Some of the factors which may cause actual results to differ from these forward-looking statements can be found by referring to the information contained under the headings "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" in Vodafone Group Plc's Annual Report for the year ended 31 March 2006. The Annual Report can be found on our website (www.vodafone.com). 2. At the country level, service revenue growth is calculated in local currency and before the elimination of intercompany revenue. For Romania and South Africa, this calculation also assumes the Group's increased equity interest is reflected in the whole of the current quarter and the same quarter last year. The basis of calculation for organic growth is included in the Group's Annual Report for the year ended 31 March 2006. 3. Certain revenue relating to content delivered by SMS and MMS has been reclassified from messaging revenue to data revenue. All prior period results have been adjusted accordingly. 4. Vodafone, Vodafone live!, Vodafone Zuhause, Vodafone Casa and Stop the Clock are trademarks of the Vodafone Group. 5. References in this press release to "June" and "March" shall, unless the context requires otherwise, be deemed to be references to 30 June 2006 and 31 March 2006 respectively. 6. In April 2006, the Group announced changes to the organisational structure of its operations, effective from 1 May 2006. The results above are presented in accordance with this new organisation structure and all prior period results have been restated accordingly. KEY PERFORMANCE INDICATORS MOBILE TELECOMMUNICATIONS BUSINESSES PROPORTIONATE CUSTOMERS - 1 APRIL 2006 TO 30 JUNE 2006 -------------------------------------------------------------------------------COUNTRY PERCENTAGE AT 31 NET OTHER AT 30 OWNERSHIP MARCH 2006 ADDITIONS MOVEMENTS JUNE 2006 PREPAID (1) (2) (3) (%) ('000s) ('000s) ('000s) ('000s) (%)-------------------------------------------------------------------------------Europe: Germany 100.0% 29,191 253 - 29,444 53.4 Italy 76.9% 18,490 69 - 18,559 92.1 Spain 100.0% 13,521 428 - 13,949 49.0 UK 100.0% 16,304 (119) - 16,185 60.6 Albania 99.9% 772 19 - 791 96.8 Greece 99.9% 4,471 162 3 4,636 67.2 Ireland 100.0% 2,075 15 - 2,090 73.9 Malta 100.0% 175 2 - 177 89.7 Netherlands 99.9% 3,909 (28) - 3,881 51.8 Portugal 100.0% 4,276 90 - 4,366 79.6 -----------------------------------------------------Total Europe 93,184 891 3 94,078 65.9 EMAPA:(4) Subsidiaries: Australia 100.0% 3,177 (37) - 3,140 73.6 Czech Republic 100.0% 2,214 49 - 2,263 47.0 Egypt 50.1% 3,314 237 - 3,551 90.8 Hungary 100.0% 2,063 (39) - 2,024 66.6 New Zealand 100.0% 2,068 32 - 2,100 77.1 Romania 100.0% 6,384 351 - 6,735 65.9 Turkey 100.0% - 381 11,665 12,046 89.9 ----------------------------------------------------- 19,220 974 11,665 31,859 79.2 Joint Ventures: South Africa(5) 50.0% 10,968 761 25 11,754 89.7 Other 5,357 616 - 5,973 78.8 ----------------------------------------------------- 16,325 1,377 25 17,727 83.1 Affiliates: United States(5) 44.4% 23,530 807 4 24,341 5.5 Other 18,312 489 - 18,801 74.0 ----------------------------------------------------- Total 41,842 1,296 4 43,142 63.4 -----------------------------------------------------Total EMAPA 77,387 3,647 11,694 92,728 67.4 -----------------------------------------------------Total 170,571 4,538 11,697 186,806 67.1------------------------------------------------------------------------------- (1) All ownership percentages are stated as at 30 June 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 to 30 June 2006 represent the acquisition of minority interests in Vodafone Greece, Vodafone Albania, the acquisition of substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey and the indirect acquisition of a 0.1% interest in Vodacom Group (Pty) Limited in South Africa. (3) Prepaid customer percentages are calculated on a venture basis. At 30 June 2006, there were 553.0 million venture customers. (4) EMAPA covers Eastern Europe, Middle East, Africa, Asia Pacific and Affiliates. (5) 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. Net additions for the quarter to 30 June 2006 includes 0.2 million proportionate customer disconnections in South Africa during the period resulting from a change in the definition of an active customer to exclude calls forwarded to voicemail from the definition of a revenue generating activity. (6) The Group's ownership interest in Verizon Wireless is 45.0%. However, the Group's proportionate customer base has been adjusted for Verizon Wireless's proportionate ownership of its customer base across all its network interests of approximately 98.6% at 30 June 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 these networks. MOBILE TELECOMMUNICATIONS BUSINESSES VODAFONE LIVE! ACTIVE DEVICES -------------------------------------------------------------------------------COUNTRY AT 31 NET AT 30 MARCH 2006 ADDITIONS JUNE 2006 ('000s) ('000s) ('000s)-------------------------------------------------------------------------------Europe: Germany 6,214 (20) 6,194 Italy(1) 4,097 246 4,343 Spain 5,514 537 6,051 UK 4,181 195 4,376 Other 4,229 404 4,633 ---------------------------------------------Total Europe 24,235 1,362 25,597 Total EMAPA 2,835 761 3,596 ---------------------------------------------Group Statutory Total(2) 27,070 2,123 29,193------------------------------------------------------------------------------- (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 30 June 2006, there were an additional 6.5 million registered Vodafone live! venture customers in the Group's associated undertakings. 3G DEVICES -------------------------------------------------------------------------------COUNTRY AT 31 NET AT 30 MARCH 2006 ADDITIONS JUNE 2006 ('000s) ('000s) ('000s)-------------------------------------------------------------------------------Europe: Germany 2,025 312 2,337 Italy(1) 2,250 207 2,457 Spain 902 320 1,222 UK 1,033 195 1,228 Other 1,230 176 1,406 ---------------------------------------------Total Europe 7,440 1,210 8,650 Total EMAPA 281 120 401 ---------------------------------------------Group Statutory Total(2) 7,721 1,330 9,051 ---------------------------------------------Consumer devices 7,061 1,178 8,239Business devices 660 152 812 --------------------------------------------- 7,721 1,330 9,051------------------------------------------------------------------------------- (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 30 June 2006, there were an additional 2.0 million Vodafone live! with 3G and Vodafone Mobile Connect 3G/GPRS data card devices in the Group's associated undertakings. MOBILE TELECOMMUNICATIONS BUSINESSES AVERAGE MONTHLY REVENUE PER USER IN THE QUARTER -------------------------------------------------------------------------------COUNTRY 30 30 31 31 30 JUNE SEPTEMBER DECEMBER MARCH JUNE 2005 2005 2005 2006 2006-------------------------------------------------------------------------------Europe:-------------------------------------------------------------------------------Germany Total 24.3 24.4 22.9 21.5 22.1(EUR) Contract 39.8 41.0 38.8 37.2 38.4 Prepaid 9.2 9.0 8.3 7.5 7.6-------------------------------------------------------------------------------Italy Total 30.4 29.9 27.7 26.4 27.6(EUR) Contract 79.4 75.0 73.7 71.0 72.6 Prepaid 25.8 25.9 23.5 22.2 23.3-------------------------------------------------------------------------------Spain Total 36.2 37.7 35.3 33.3 35.3(EUR) Contract 58.5 60.7 56.3 52.8 54.8 Prepaid 15.4 16.2 15.0 13.9 15.0-------------------------------------------------------------------------------UK Total 24.6 25.1 23.8 22.7 23.7(GBP) Contract 46.5 47.9 44.8 43.9 45.2 Prepaid 9.5 9.9 9.5 8.8 8.9-------------------------------------------------------------------------------Albania Total 2,255 2,534 2,259 2,098 2,122(ALL) Contract 18,783 19,815 18,499 16,777 17,240 Prepaid 1,680 1,936 1,701 1,593 1,606-------------------------------------------------------------------------------Greece Total 32.2 34.2 31.3 29.8 31.1(EUR) Contract 65.1 69.7 64.2 61.5 65.6 Prepaid 15.1 15.7 14.1 13.4 13.7-------------------------------------------------------------------------------Ireland Total 51.4 53.1 50.2 48.6 48.8(EUR) Contract 101.9 107.8 99.9 99.3 102.8 Prepaid 32.1 32.6 31.6 30.0 29.3-------------------------------------------------------------------------------Malta Total 14.0 16.2 13.0 12.1 14.7(MTL) Contract 74.6 91.4 61.8 54.4 72.3 Prepaid 7.4 7.8 7.3 6.9 7.4-------------------------------------------------------------------------------Netherlands Total 37.1 36.6 34.5 33.6 35.7(EUR) Contract 69.5 68.6 64.7 61.3 63.5 Prepaid 11.3 11.0 9.8 9.2 10.1-------------------------------------------------------------------------------Portugal Total 26.4 27.1 24.0 23.3 23.5(EUR) Contract 67.3 69.8 61.9 62.4 62.2 Prepaid 14.3 14.7 13.4 12.9 13.0-------------------------------------------------------------------------------EMAPA Subsidiaries (1):-------------------------------------------------------------------------------Australia Total 47.8 48.2 51.4 47.9 49.4(AUD) Contract 92.8 93.6 94.3 92.0 92.7 Prepaid 26.7 31.1 35.0 32.0 33.9-------------------------------------------------------------------------------Czech Republic Total 680 679 679 644 674(CZK) Contract 1,029 1,017 1,015 951 978 Prepaid 340 342 337 311 331-------------------------------------------------------------------------------Egypt Total 91.4 89.4 74.1 79.0 79.4(EGP) Contract 268.6 283.9 274.1 289.3 292.1 Prepaid 60.7 62.4 52.0 56.0 57.1-------------------------------------------------------------------------------Hungary Total 5,321 5,153 4,885 4,647 5,066(HUF) Contract 11,302 11,264 9,666 8,809 9,129 Prepaid 3,391 3,046 3,043 2,887 3,125-------------------------------------------------------------------------------New Zealand Total 50.7 51.0 51.2 51.2 46.6(NZD) Contract 138.9 139.7 137.2 138.5 126.1 Prepaid 25.9 25.6 25.9 25.7 23.2-------------------------------------------------------------------------------Romania Total 14.9 15.9 15.4 13.9 15.2(USD) Contract 30.2 31.1 29.5 27.0 29.5 Prepaid 6.3 7.1 7.0 6.0 6.7------------------------------------------------------------------------------- (1) On 24 May 2006, the Group acquired substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a result, the Group expects to report Turkey's average monthly revenue per user in the quarter with effect from the quarter ended 30 September 2006. MOBILE TELECOMMUNICATIONS BUSINESSES NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE ------------------------------------------------------------------------------- QUARTER TO 30 JUNE 2006 -------------------------------------------------COUNTRY MESSAGING DATA TOTAL -------------------------------------------------Germany 14.5% 6.7% 21.2%Italy(1) 12.7% 4.6% 17.3%Spain 8.9% 6.8% 15.7%UK 15.4% 5.5% 20.9%Group Statutory Total(2) 12.5% 4.9% 17.4%------------------------------------------------------------------------------- HISTORIC NON-VOICE SERVICES INFORMATION ------------------------------------------------------------------------------- NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE IN THE QUARTER TO ----------------------------------------------------------COUNTRY 30 30 31 31 30 JUNE SEPTEMBER DECEMBER MARCH JUNE 2005 2005 2005 2006 2006 ----------------------------------------------------------Germany 19.3% 19.5% 20.4% 21.7% 21.2%Italy(1) 14.9% 16.8% 17.4% 18.0% 17.3%Spain 13.7% 14.2% 14.8% 15.1% 15.7%UK 19.3% 19.7% 20.7% 21.3% 20.9%Group Statutory Total 16.2% 16.6% 17.2% 17.8% 17.4%------------------------------------------------------------------------------- (1) Under IFRS, Vodafone Italy is treated as a joint venture. (2) With effect from the quarter ended 30 June 2006, data revenues have been adjusted to include messaging content revenues which had previously been included in messaging. The impact for the quarter ended 30 June 2006 is to increase the total Group data revenue as a percentage of service revenue by 1.0% to 4.9% and to reduce the total Group messaging revenue as a percentage of service revenue by 1.0% to 12.5%. MOBILE TELECOMMUNICATIONS BUSINESSES CUSTOMER CHURN------------------------------------------------------------------------------- ANNUALISED CHURN INFORMATION IN THE QUARTER TO ----------------------------------------------------------COUNTRY 30 30 31 31 30 JUNE SEPTEMBER DECEMBER MARCH JUNE 2005 2005 2005 2006 2006 ----------------------------------------------------------Germany Total 17.3% 19.7% 21.2% 22.6% 20.7% Contract 13.1% 14.3% 16.8% 16.7% 14.6% Prepaid 21.1% 24.6% 25.2% 27.7% 26.0%-------------------------------------------------------------------------------Italy Total 17.3% 18.7% 19.1% 19.5% 20.8% Contract 14.9% 14.5% 16.6% 14.5% 17.2% Prepaid 17.5% 19.1% 19.3% 19.9% 21.1%-------------------------------------------------------------------------------Spain Total 21.7% 20.7% 20.6% 20.6% 20.5% Contract 13.6% 12.5% 13.9% 14.1% 12.3% Prepaid 29.0% 28.1% 26.9% 26.9% 28.9%-------------------------------------------------------------------------------UK Total 32.4% 33.1% 31.9% 31.2% 32.8% Contract 23.2% 21.6% 20.2% 21.2% 20.1% Prepaid 38.3% 40.5% 39.5% 37.5% 40.9%------------------------------------------------------------------------------- ACTIVE CUSTOMERS ------------------------------------------------------------------------------- ACTIVE CUSTOMERS(1) AT ----------------------------------------------------------COUNTRY 30 30 31 31 30 JUNE SEPTEMBER DECEMBER MARCH JUNE 2005 2005 2005 2006 2006 ----------------------------------------------------------Germany 93.0% 92.8% 91.5% 90.6% 90.6%Italy(2) 92.2% 92.8% 92.1% 91.2% 90.9%Spain 94.8% 95.0% 95.7% 94.3% 93.8%UK 88.8% 90.6% 90.8% 88.4% 85.7%Group Statutory Total(1) 91.3% 92.2% 92.1% 91.6% 91.4%------------------------------------------------------------------------------- (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 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 TELECOMMUNICATIONS BUSINESSES VOICE USAGE VOLUMES ------------------------------------------------------------------------------- TOTAL VOICE MINUTES(1) (MILLIONS) IN THE QUARTER TO ----------------------------------------------------------COUNTRY 30 30 31 31 30 JUNE SEPTEMBER DECEMBER MARCH JUNE 2005 2005 2005 2006 2006 ----------------------------------------------------------Europe: Germany 6,356 6,428 7,010 6,993 7,614 Italy(2) 7,173 7,164 7,521 7,746 7,687 Spain 5,648 5,859 5,966 6,362 6,978 UK 6,810 6,937 7,167 7,145 7,207 Albania 129 144 141 135 148 Greece 1,757 1,896 1,870 1,869 2,075 Ireland 1,263 1,279 1,302 1,289 1,380 Malta 42 47 43 43 49 Netherlands 1,697 1,601 1,755 1,733 1,820 Portugal 1,319 1,384 1,386 1,402 1,472 Sweden 688 681 753 - - ----------------------------------------------------------Total Europe 32,882 33,420 34,914 34,717 36,430 EMAPA: Subsidiaries Australia 1,619 1,818 1,957 2,001 2,006 Czech Republic(3) 289 840 899 925 901 Egypt 1,979 2,341 2,278 2,442 2,869 Hungary 741 792 842 866 948 New Zealand 540 559 616 602 597 Romania(3) 525 1,754 1,931 1,914 1,873 ---------------------------------------------------------- 5,693 8,104 8,523 8,750 9,194 Joint Ventures 2,021 1,957 2,598 4,684 5,763 ----------------------------------------------------------TOTAL EMAPA 7,714 10,061 11,121 13,434 14,957 ----------------------------------------------------------Group Statutory Total(4) 40,596 43,481 46,035 48,151 51,387------------------------------------------------------------------------------- (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 the Czech Republic, Germany, New Zealand and Romania 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, the Group expects to report Turkey's voice usage volumes with effect from the quarter ended 30 September 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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