26th Jan 2005 07:00
Vodafone Group Plc26 January 2005 26 January 2005 VODAFONE REACHES 150 MILLION CUSTOMERS - STRONGEST QUARTER SINCE DECEMBER 2000 Vodafone Group Plc ("Vodafone") announces today key performance indicators forthe quarter ended 31 December 2004. The main highlights are: • Strongest quarter of net additions since December 2000 with over 5.4 million organic net additions, bringing the total proportionate customer base to over 151.8 million • Highest quarter ever for new Vodafone live! customers of 3.9 million, bringing global Vodafone live! controlled customer base to 28.3 million, including 12.9 million in Japan • ARPU trends continued to develop in line with expectations; non-voice services increased to 16.7% of controlled service revenue • Successful launch of Vodafone live! with 3G across 13 markets • In total, over 400,000 Vodafone Mobile Connect customers, including over 170,000 3G enabled customers • 2.4 billion shares repurchased in the financial year to date at a cost of £3.2 billion Arun Sarin, Chief Executive of Vodafone, commented: "I am very pleased to announce another impressive quarter for customer andrevenue growth. We have seen consistently strong performances across Europe andin the US, whilst we continue to focus on our turnaround programme in Japan. In the last quarter we saw record new Vodafone live! customer additions in ourcontrolled base of 3.9 million, which contributed to a total of over 28 millioncustomers across our controlled networks. This highlights our success in attracting and migrating customers to new services. Our customer proposition isenhanced by Vodafone live! with 3G and we have seen positive early indications following our launch in November. Overall these KPIs are in line with our expectations and we maintain ourguidance for the full year to March 2005." United Kingdom Vodafone UK added 641,000 net customers in the quarter, taking the total base to15.2 million customers, an increase of over 9% since last year. Churn hascontinued its improving trend due to ongoing focus on customer retention andloyalty initiatives. Blended annual ARPU reduced to £314 from £318 for the yearto December compared to the year to September 2004, principally due to theimpact of the reduction in incoming call termination rates of approximately 30%effective from 1 September 2004. The growth in average customers more than offset the fall in ARPU and led to a3% growth in service revenue for the quarter when compared to the same quarterlast year. Excluding the effect of the reduction in termination rates, servicerevenue grew by around 7% in the quarter. Non-voice services as a percentage ofservice revenue for the year to December 2004 were 17.9%, up from 15.5% for theyear to December 2003, with Vodafone live! customers now exceeding 3 million. Net acquisition and retention costs as a percentage of service revenue in thequarter were stable compared to the same period last year, but higher than thequarter to September 2004 due to seasonal promotional activity. Germany Net customer additions of 843,000 demonstrated continued strong growth inGermany and resulted in a closing base of 26.9 million customers, with churnremaining stable compared to the previous quarter. Blended annual ARPU for the year to December was €303 compared to €305 for theyear to September 2004, reflecting the impact of lower spending new customers.Bundled minute plans continued to be successful and have a positive impact onARPU. Strong customer growth was the primary driver behind a 6% increase in servicerevenue for the quarter compared to the same quarter last year. Non-voiceservices as a percentage of service revenue for the year to December 2004 were17.7%, up from 17.2% for the year to December 2003, benefiting from the increasein Vodafone live! customers to 4.3 million. Net acquisition and retention costs as a percentage of service revenue in thequarter were lower than the same period last year, but higher than the quarterto September 2004 due to seasonal promotional activity. Italy Proportionate net customer additions were 359,000 in the quarter, leading to atotal proportionate customer base of over 17 million. Blended annual ARPUremained stable at €360 for the year to December compared to the year toSeptember 2004. Churn also remained stable quarter on quarter. Service revenue for the quarter increased 8% compared to the same period lastyear. Non-voice services as a percentage of service revenue increased to 14.4%for the year to December 2004 from 12.7% for the year to December 2003,benefiting from a series of promotions throughout the year and an increase intotal Vodafone live! customers in Italy to 2.3 million. Net acquisition and retention costs as a percentage of service revenue in thequarter were higher than the same period last year, reflecting the increase incompetitive activity in the Italian market. However, these costs remain at verylow levels when compared to the rest of the Group. Japan The closing proportionate base in Japan was 14.8 million, reflecting netcustomer additions of 36,000 in the quarter. The Group's effective ownership inVodafone Japan reduced from 98.2% to 97.7% following the completion of themerger of Vodafone K.K. and Vodafone Holdings K.K. on 1 October 2004. Churnlevels remained stable quarter on quarter, benefiting from the continuedinvestment in customer retention activities and the introduction of newhandsets. Blended annual ARPU fell to Y75,133 for the year to December 2004 from Y76,590for the year to September 2004. The fall in ARPU reflects the competitiveenvironment, increasing market penetration and growth in prepaid customers. Service revenue for the quarter decreased by 4% compared to the same quarterlast year, due to the fall in ARPU. Non-voice services as a percentage ofservice revenue of 21.4% for the year to December 2004 were slightly lower thanfor the year to December 2003 due to the impact of competition. Net acquisition and retention costs as a percentage of service revenue in theperiod were stable compared to the same quarter last year. The Group will continue to focus on executing a successful turnaround programmein Japan throughout 2005 and into 2006. Spain Vodafone Spain added 457,000 net customers in the quarter, bringing the totalcustomer base to 10.9 million customers, an increase of over 12% on last year.Churn has improved both quarter on quarter and year on year. Blended annual ARPU continued to grow strongly, increasing to €408 from €400 forthe year to December compared to the year to September 2004, benefiting from thefocus on high value customers. The strong growth in ARPU and customers generated service revenue growth of over20% year on year for the fourth successive quarter. Non-voice services as apercentage of service revenue increased to 13.1% for the year to December 2004from 11.0% for the year to December 2003, with Vodafone live! customersincreasing by over 700,000 in the quarter to reach a total of 2.2 million. Net acquisition and retention costs as a percentage of service revenue in theperiod were higher than the same quarter last year, reflecting the increasedinvestment in acquiring and retaining higher value customers during the currentfinancial year. - ends - For further information: Vodafone GroupSimon Lewis, Group Corporate Affairs DirectorTel: +44 (0) 1635 673310 Investor Relations Media RelationsCharles Butterworth Bobby LeachDarren Jones Ben PadovanSarah MoriartyTel: +44 (0) 1635 673310 Tel: +44 (0) 1635 673310 Tavistock CommunicationsLulu BridgesJohn WestTel: +44 (0) 20 7920 3150 Notes to editors (1) The guidance for the year to March 2005 is contained in Vodafone's Interim Results Announcement for the six months ended 30 September 2004 in which there is a discussion of forward-looking statements and the risks associated with them. (2) Service revenue growth is calculated in local currency and before the elimination of intercompany revenue. (3) Vodafone, Vodafone live! and Vodafone Mobile Connect are trademarks of the Vodafone Group. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES PROPORTIONATE CUSTOMERS - 1 OCTOBER 2004 TO 31 DECEMBER 2004 COUNTRY PERCENTAGE AT NET OTHER AT PREPAID OWNERSHIP 30 ADDITIONS MOVEMENTS 31 (3) (1) SEPTEMBER (2) DECEMBER 2004 2004 (%) (000s) (000s) (000s) (000s) (%)UK & IRELANDUK 100.0 14,600 641 - 15,241 61%Ireland 100.0 1,890 39 - 1,929 72%TOTAL 16,490 680 - 17,170 62% NORTHERN EUROPEGermany 100.0 26,092 843 - 26,935 52%Hungary(5) 92.8 1,498 112 - 1,610 78%Netherlands 99.9 3,537 130 - 3,667 56%Sweden 100.0 1,530 44 - 1,574 39%Others 9,993 388 - 10,381 48%TOTAL 42,650 1,517 - 44,167 51% SOUTHERN EUROPEItaly 76.8 16,654 359 - 17,013 92%Albania 99.7 587 32 - 619 97%Greece 99.4 3,704 118 - 3,822 66%Malta 100.0 165 - - 165 90%Portugal 100.0 3,488 149 - 3,637 74%Spain 100.0 10,452 457 - 10,909 54%Others 878 109 - 987 66%TOTAL 35,928 1,224 - 37,152 77% AMERICASUnited States(2) & (4) 44.4 18,686 753 2 19,441 6%TOTAL 18,686 753 2 19,441 6% ASIA PACIFICJapan(2) 97.7 14,851 36 (78) 14,809 11%Australia(2) 100.0 2,649 156 (228) 2,577 64%New Zealand 100.0 1,757 74 - 1,831 79%Others 6,421 330 - 6,751 71%TOTAL 25,678 596 (306) 25,968 67% MIDDLE EASTAND AFRICAEgypt(5) 67.0 2,142 249 - 2,391 83%Others 5,119 400 - 5,519 89%TOTAL 7,261 649 - 7,910 88% GROUP TOTAL 146,693 5,419 (304) 151,808 60% (1) All ownership percentages are stated as at 31 December 2004 and exclude options, warrants or other rights or obligations of the Group to increase or decrease ownership in any venture. Ownership interests have been rounded to the nearest tenth of one percent. (2) Other movements for the quarter to 31 December 2004 includes 228,000 MVNO customers in Vodafone Australia which had previously been included in the Group's proportionate customer base but have been excluded in the quarter to 31 December 2004 in accordance with Group policy, a stake decrease of 0.5% in Vodafone Japan from 98.2% to 97.7% following the merger of Vodafone K.K. and Vodafone Holdings K.K. on 1 October 2004 and the acquisition of a local network operator by Verizon Wireless. (3) Prepaid customer percentages are calculated on a venture basis. At 31 December 2004, there were 416.4 million total venture customers. (4) 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 31 December 2004. 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. (5) Subsequent to 31 December 2004, the Group increased its stake in Vodafone Hungary to 100.0% and committed to reduce its stake in Vodafone Egypt to 50.1%. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES VENTURE VODAFONE LIVE! CUSTOMERS ------------------------------------------------------------- COUNTRY AT NEW AT 30 SEPTEMBER 2004 CUSTOMERS 31 DECEMBER 2004 (000s) (000s) (000s) ------------------------------------------------------------- Germany 3,570 777 4,347Italy 1,643 659 2,302Japan * N/A N/A 12,937Spain 1,496 704 2,200UK 2,403 710 3,113Other 2,369 1,023 3,392Controlled Total 11,481 3,873 28,291 ------------------------------------------------------------- * With effect from 31 December 2004, Vodafone live! venture customers in Japan have been included in the above table as the service in Japan has become aligned with the Vodafone live! experience in other countries. Prior to this date, registered Vodafone live! venture customers in Japan, of which there were 13.0 million at 30 September 2004, were excluded from the table and disclosed separately. The table above only includes Vodafone live! venture customers in our controlledoperations. There were an additional 2.8 million registered Vodafone live!venture customers in our non-controlled associated undertakings at 31 December2004 (September 2004: 1.8 million). VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES CONTROLLED ACTIVE CUSTOMER INFORMATION AS AT 31 DECEMBER 2004 CONTROLLED ACTIVE CUSTOMERS AS AT -------------------------------------------------------------------COUNTRY DECEMBER MARCH JUNE SEPTEMBER DECEMBER 2003 2004 2004 2004 2004 -------------------------------------------------------------------Germany 92% 93% 93% 92% 92%Italy 93% 93% 92% 92% 92%Japan 98% 97% 97% 97% 97%Spain 95% 96% 97% 92% 92%UK 91% 91% 91% 91% 90%ControlledTotal 93% 94% 93% 93% 92% ------------------------------------------------------------------- VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES MONTHLY REGISTERED TOTAL ARPU FOR THE 15 MONTHS TO 31 DECEMBER 2004 Country Oct Nov Dec Jan Feb Mar Apr May JunGermany EUR 27.0 24.9 25.4 24.5 23.2 26.2 25.0 25.5 25.8Italy EUR 31.1 29.0 30.4 29.6 27.8 30.6 29.9 30.1 30.8Japan JPY 6,760 6,460 6,690 6,360 6,100 6,560 6,300 6,150 6,150Spain EUR 32.6 29.5 31.8 30.6 29.3 33.0 32.9 33.9 35.4UK(1) GBP 26.8 26.0 26.2 27.0 24.1 28.3 25.3 27.8 26.8 Country Jul Aug Sep Oct Nov DecGermany EUR 26.4 25.9 25.7 25.5 24.6 24.5Italy EUR 31.0 29.6 30.2 30.3 28.9 31.2Japan JPY 6,470 6,380 6,210 6,280 5,970 6,200Spain EUR 38.5 36.4 35.2 34.8 32.6 35.1UK(1) GBP 27.3 26.8 25.8 25.6 24.6 24.4 ARPU INFORMATION FOR THE 12 MONTH PERIOD TO 31 DECEMBER 2004 ARPU ----------------------------------------------------------------COUNTRY CURRENCY REGISTERED REGISTERED REGISTERED PREPAID CONTRACT TOTALUK & IRELANDUK(1) GBP 127 574 314Ireland EUR 370 1,186 602 NORTHERN EUROPEGermany EUR 121 482 303Hungary HUF 40,588 150,671 62,540Netherlands EUR 152 860 459Sweden SEK 799 5,625 3,938 SOUTHERN EUROPEItaly EUR 306 927 360Albania ABL 20,507 294,980 28,967Greece EUR 211 781 398Malta MTL 94 908 168Portugal EUR 192 687 336Spain EUR 179 687 408 ASIA PACIFICJapan JPY 30,734 79,506 75,133Australia AUD 334 949 607New Zealand NZD 343 1,800 651 MIDDLE EAST ANDAFRICAEgypt EGP 806 3,078 1,237 ARPU - HISTORY REGISTERED TOTAL ARPU FOR THE TWELVE MONTH PERIOD TO ----------------------------------------------------COUNTRY CURRENCY DECEMBER MARCH JUNE SEPTEMBER DECEMBER 2003 2004 2004 2004 2004 ----------------------------------------------------Germany EUR 311 310 309 305 303Italy EUR 359 361 362 360 360Japan JPY 82,917 80,695 78,365 76,590 75,133Spain EUR 369 377 389 400 408UK(1) GBP 303 309 314 318 314 ---------------------------------------------------- (1) During the period from 1 October 2002 to 31 March 2003, Vodafone UK operated under interim commercial terms with one of its service providers. Final terms were agreed in April 2003. Recognising revenues on a consistent basis during the interim period to the bases before and after this period would result in additional service revenues of £74 million. For consistency and comparability purposes, this revenue has been included in the calculation of UK ARPU but has been excluded from Group turnover in accordance with UK GAAP. The impact of the inclusion of these amounts has been to increase ARPU for the 12 months to December 2003 from £300 to £303. VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES 12 MONTHS TO 31 DECEMBER 2004 ------------------------------------------------COUNTRY MESSAGING DATA TOTAL ------------------------------------------------Germany 15.1% 2.6% 17.7%Italy 12.9% 1.5% 14.4%Japan 7.2% 14.2% 21.4%Spain 11.3% 1.8% 13.1%UK 15.0% 2.9% 17.9%Statutory Total 12.2% 4.5% 16.7%Proportionate Total 10.3% 3.7% 14.0% ------------------------------------------------ NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES - HISTORY 12 MONTHS TO ------------------------------------------------------------------COUNTRY DECEMBER MARCH JUNE SEPTEMBER DECEMBER 2003 2004 2004 2004 2004 ------------------------------------------------------------------Germany 17.2% 17.4% 17.4% 17.6% 17.7%Italy 12.7% 13.3% 13.5% 14.1% 14.4%Japan 21.8% 21.9% 21.9% 21.8% 21.4%Spain 11.0% 11.4% 11.8% 12.4% 13.1%UK 15.5% 16.1% 16.6% 17.3% 17.9%Statutory Total 15.9% 16.1% 16.3% 16.5% 16.7%ProportionateTotal 12.5% 13.0% 13.3% 13.6% 14.0% ------------------------------------------------------------------ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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