Annual Reports

 
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  • 6-K (Mar 6, 2018)
  • 25-NSE (Feb 21, 2018)
  • 6-K (Feb 5, 2018)
  • 6-K (Jan 24, 2018)
  • 6-K (Jan 23, 2018)
  • 6-K (Jan 4, 2018)
Vodafone Group 6-K 2010

Documents found in this filing:

  1. 6-K
  2. 6-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

Report of Foreign Private Issuer

 

Pursuant to Rules 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

 

Dated July 23, 2010

 

Commission File Number: 001-10086

 

VODAFONE GROUP

PUBLIC LIMITED COMPANY

(Translation of registrant’s name into English)

 

 

VODAFONE HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2 FN, ENGLAND

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

 

Form 20-F    ü     

Form 40-F          

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):         

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):         

 

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

 

Yes            

No    ü    

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2 (b): 82-        .

 


 

This Report on Form 6-K contains a news release issued by Vodafone Group Plc on July 23, 2010, entitled “Interim Management Statement for the Quarter Ended 30 June 2010 Vodafone Returns to Organic Revenue Growth”

 


 

23 July 2010

 

INTERIM MANAGEMENT STATEMENT FOR THE QUARTER ENDED 30 JUNE 2010

 

VODAFONE RETURNS TO ORGANIC REVENUE GROWTH

 

A stronger Vodafone:

 

·                  Group service revenue returns to organic growth (+1.1%(*)); improving trends in all regions 

 

·                  Europe: the UK (+0.7%(*)) and Germany (+0.2%(*)) return to service revenue growth

 

·                  Emerging markets: robust growth; improvement in India (+13.7%(*)); Turkey achieves record service revenue (+23.7%(*))

 

·                  Group data revenue £1.2 billion (+25.4%(*)). Commercial focus on data services generates faster growth than previous quarter 

 

·                  Sustained FCF generation at £1.8 billion, supports capital investment and 7% p. a. dividend per share growth policy 

 

·                  Full year outlook confirmed

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

Change

 

 

 

30 June

 

 

Change year on year

 

 

 

compared to Q 4

 

 

 

2010

 

 

Reported

 

Organic

 

 

 

Organic

 

 

 

£m

 

 

%

 

%

 

 

 

pps

 

Europe

 

6,767

 

 

(4.2

)

(1.7

)

 

 

+0.7

(1)

Africa and Central Europe

 

2,041

 

 

+29.8

 

+3.7

 

 

 

+1.3

 

Asia Pacific and Middle East

 

1,808

 

 

+21.3

 

+10.5

 

 

 

+5.5

 

Eliminations

 

(29

)

 

 

 

 

 

 

 

 

 

Service revenue

 

10,587

 

 

+4.9

 

+1.1

 

 

 

+1.7

(1)

Other revenue

 

675

 

 

 

 

 

 

 

 

 

 

Revenue

 

11,262

 

 

+4.8

 

+0.9

 

 

 

+2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

1,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

1,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vittorio Colao, Chief Executive, commented

“These are the first quarterly results to show service revenue growth since the global recession impacted. We have achieved these results through our continuing commercial approach in key European markets, focusing especially on data, and from strong growth in emerging markets, with India now cash positive at an operating level and our highest ever quarterly revenue in Turkey. The financial outlook for the current year is confirmed.”

 


 

OPERATING REVIEW

 

Group overview

 

Group revenue increased by 4.8% to £11.3 billion and Group service revenue increased by 4.9% to £10.6 billion. On an organic basis, service revenue increased by 1.1%(*) – an improvement of 1.7 percentage points(1) on the previous quarter – as each of the regions delivered improved service revenue trends.

 

These are the first quarterly results to show organic service revenue growth since the global recession first impacted Vodafone and reflect our increased commercial focus across the Group. In Europe data revenue growth accelerated to 23.3%(*) as a result of strong smartphone and mobile connectivity sales. We have also generated good growth in South Africa, India and Turkey.

 

In Europe service revenue fell by 1.7%(*), a 0.7 percentage point(1) improvement on the previous quarter. Our northern European businesses experienced an improvement in economic conditions, whilst our southern European businesses continued to experience a weaker economic environment and poor consumer sentiment.

 

Both Germany and the UK delivered a third successive quarterly improvement in organic service revenue trends and returned to positive service revenue growth, with each generating faster data revenue growth rates as a result of our focus on smartphones and data plans and, in Germany, on netbooks. Spain delivered a small improvement in organic service revenue trends, despite an increasingly competitive market. In Italy where we have responded to significant price competition with targeted promotional activity, organic service revenue declined. Enterprise revenue returned to growth in Europe, increasing by 0.2%(*) with improved roaming activity and customer wins by Vodafone Global Enterprise. Organic enterprise growth was positive in Germany, Italy and the UK, and trends remained broadly stable in Spain.

 

In Africa and Central Europe service revenue grew 3.7%(*), a 1.3 percentage point improvement on the previous quarter, driven by strong performance in Turkey where we are now benefiting both from successful execution of our turnaround plan and from an improving economic environment. In South Africa growth was at a similar level to the previous quarter with higher data revenue growth substantially offsetting the impact of reduced mobile termination rates. In our central European markets operational trends improved despite fragile economic environments and significant reductions in local mobile termination rates.

 

In Asia Pacific and Middle East service revenue increased by 10.5%(*), a 5.5 percentage point improvement on the previous quarter. The improvement was driven by continued strong customer growth and better usage trends in India where there have been no recent significant price reductions by market leaders. Our operational actions following last year’s significant price declines have been successful and we are now seeing minutes return to operators with strong brands and performing networks. Our Australian joint venture continued to perform well.

 

Capital expenditure was £1,041 million reflecting continued European network investment, enhancement of our network in Turkey and continued network rollout in India, albeit at a slower rate than in the first quarter last year. In addition, the Group invested £3.0 billion in spectrum licences in India and Germany.

 

Free cash flow was £1,767 million and was broadly stable year on year after adjusting for foreign exchange.

 

Net debt at 30 June 2010 was £32.7 billion, slightly lower than at 31 March 2010, reflecting free cash flow generated during the period and favourable foreign exchange movements which together broadly offset spectrum payments in the period.

 

 

Notes:

(*)            All amounts in this document marked with an “(*)” represent organic growth which presents performance on a comparable basis, both in terms of merger and acquisition activity and foreign exchange rates.

(1)          After adjusting for the positive impact of IFRIC 13 (accounting for customer incentive schemes) in the previous quarter.

 


 

OPERATING REVIEW

 

Outlook for the 2011 financial year(1)(2)

 

In the first quarter trading was consistent with management’s expectations underlying the outlook statement for the current financial year. The EBITDA margin decline was also in line with management’s expectations and we continue to expect a full year EBITDA margin decline at a substantially lower rate than that experienced in the 2010 financial year, with the majority of the improvement occurring in the second half of the year.

 

The Group’s outlook for the current financial year is therefore confirmed.

 

Summary

 

Successful implementation of our strategy, set out in November 2008, has enabled Vodafone to return to service revenue growth in the quarter with improving trends across the Group’s three regions and has positioned Vodafone for further growth in Europe, driven by mobile data, and in our emerging markets. Later this year we will set out how we intend to accelerate our strategy to drive shareholder value and take advantage of the widespread adoption of data.

 

 

Notes:

(1)          The outlook ranges for the 2011 financial year set out on page 37 of the Group’s 2010 annual report included full year foreign exchange rate assumptions of £1:€1.15 and £1:US$1.50. The actual rates experienced during the quarter were £1:€1.17 and £1:US$1.49. On a full year basis a 1% change in the euro/sterling exchange rate would impact adjusted operating profit by approximately £70 million and free cash flow by approximately £60 million.

(2)          The Group’s outlook does not include one-off tax settlements such as the UK CFC settlement discussed on page 7.

 


 

OPERATING REVIEW

 

Europe

 

Revenue declined by 4.2% including a 2.4 percentage point impact from unfavourable exchange rate movements. Germany and the UK returned to organic service revenue growth this quarter, which together partially offset the reductions in most other markets and led to an overall decrease in service revenue of 1.7%(*). Strong growth in data and fixed line revenue, which grew by 23.3%(*) and 5.2%(*) respectively, and improvements in usage and roaming partially offset lower voice revenue resulting from continued market and regulatory pressure.

 

 

 

Quarter ended

 

 

 

 

 

 

 

 

30 June

 

 

 

 

 

 

Revenue

 

2010

 

2009

 

 

 

 

% change

 

 

 

£m

 

£m

 

 

Reported

 

Organic

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

1,849

 

1,903

 

 

(2.8

)

0.2

 

Italy

 

1,371

 

1,451

 

 

(5.5

)

(2.5

)

Spain

 

1,219

 

1,340

 

 

(9.0

)

(6.2

)

UK

 

1,195

 

1,186

 

 

0.7

 

0.7

 

Other Europe

 

1,194

 

1,260

 

 

(5.2

)

(2.1

)

Eliminations

 

(61

)

(76

)

 

 

 

 

 

Service revenue

 

6,767

 

7,064

 

 

(4.2

)

(1.7

)

Other revenue

 

373

 

392

 

 

(4.8

)

(2.8

)

Revenue

 

7,140

 

7,456

 

 

(4.2

)

(1.8

)

 

Germany

 

Service revenue grew by 0.2%(*) driven by data revenue growth of 31.1%(*) as a result of increased penetration of smartphones and the Superflat Internet tariff. Voice revenue declined at a lower rate compared to the previous quarter due to value focused customer management, good growth in enterprise resulting from contract wins and higher roaming revenue. Fixed line growth was stable with customer growth offset by continued price competition.

 

Italy

 

Service revenue declined by 2.5%(*) as growth in fixed line and data revenue of 12.3%(*) and 22.1%(*) respectively was more than offset by spending optimisation by customers due to the weak macroeconomic environment and significant price competition. The launch of value propositions and promotional offers drove higher usage. The closing fixed broadband customer base increased to 1.4 million on a 100% basis. Data revenue growth was driven by increasing penetration of smartphones and PC connectivity devices.

 

Spain

 

Service revenue declined by 6.2%(*) driven by continued intense competition and economic weakness, including high unemployment and a termination rate cut effective from October 2009. Excluding the benefit from a contract settlement in the quarter ended 30 June 2009 service revenue declined by 5.4%. Higher usage generated from increased penetration of flat rate tariffs partially offset the negative price pressures. Strong data revenue growth of 13.6%(*) was driven by a higher number of smartphones sold with data bundles as well as growth in mobile broadband. Fixed line revenue grew by 7.4%(*) benefiting from the on-going success of Vodafone Station, with a closing fixed broadband customer base of 0.7 million.

 

UK

 

Service revenue grew by 0.7%(*) driven by strong data revenue growth of 27.8%(*). During the quarter, the UK achieved higher penetration of mobile internet bundles, continued growth in the contract customer base (with increasing penetration of new products launched in the second half of the previous financial year) and improved roaming trends. These factors more than offset the negative impact of termination rate cuts effective from July 2009 and April 2010 as well as continued intense competition.

 

Other Europe

 

Service revenue declined by 2.1%(*) with declines in all countries except the Netherlands as all markets, in particular Greece, were impacted by the challenging economic environment and intense competitive factors.

 


 

OPERATING REVIEW

 

Africa and Central Europe

 

Revenue increased by 30.3% with favourable exchange rates contributing 9.0 percentage points of growth and an 18.0 percentage point benefit resulting from the impact of merger and acquisition activity, primarily the purchase of a controlling interest in Vodacom in the prior year. Organic service revenue grew by 3.7%(*) as continued growth in Vodacom and Turkey was partially offset by declines in Romania and the rest of Central Europe. This increase was driven by strong data revenue growth and the higher average customer base which was partially offset by a 5.1 percentage point impact of termination rate cuts.

 

 

 

Quarter ended

 

 

 

 

 

 

 

30 June

 

 

 

 

 

Revenue

 

2010

 

2009

 

% change

 

 

 

£m

 

£m

 

Reported

 

Organic

(1)

 

 

 

 

 

 

 

 

 

 

Vodacom

 

1,133

 

725

 

56.3

 

4.0

 

Other Africa and Central Europe

 

908

 

848

 

7.1

 

3.4

 

Service revenue

 

2,041

 

1,573

 

29.8

 

3.7

 

Other revenue

 

174

 

127

 

37.0

 

(1.7

)

Revenue

 

2,215

 

1,700

 

30.3

 

3.3

 

 

Note:

(1) Organic growth includes Vodacom at the current level of ownership.

 

Vodacom

 

Service revenue grew by 4.0%(*) primarily due to strong data revenue growth in South Africa, driven by mobile broadband and the continued expansion of 3G and fibre networks, partially offset by the decline in voice revenue impacted by a termination rate cut effective from March 2010.

 

Other Africa and Central Europe

 

Service revenue grew by 3.4%(*) as the growth in Turkey was partially offset by the weaker performance in the rest of the region. Service revenue in Turkey grew by 23.7%(*), impacted by the 52% cut in termination rates effective from 1 April 2010. Outgoing voice revenue continued to improve as a result of an increase in active customers, with an improving contract customer base resulting from competitive contract tariffs. Service revenue in Romania declined due to weak economic conditions and increased pricing competition as a result of ongoing promotional offers. In other Central European countries organic service revenue growth was stable after adjusting for termination rate cuts.

 


 

 

OPERATING REVIEW

 

Asia Pacific and Middle East

 

Revenue increased by 19.9% including a 13.2 percentage point benefit from foreign exchange rate movements. On an organic basis service revenue increased by 10.5%(*), mainly reflecting a 42.7% increase in the customer base in India and continued strong data revenue growth partially offset by a decline in mobile voice pricing. India contributed around 80%(*) of the region’s organic service revenue growth.

 

 

 

 

 

Quarter ended

 

 

 

 

 

 

 

30 June

 

 

 

 

 

Revenue

 

2010

 

2009

 

% change

 

 

 

£m

 

£m

 

Reported

 

Organic(1)

 

 

 

 

 

 

 

 

 

 

India

 

954

 

755

 

26.4

 

13.7

 

Other Asia Pacific and Middle East

 

854

 

737

 

15.9

 

5.4

 

Eliminations

 

 

(1

)

 

 

 

 

Service revenue

 

1,808

 

1,491

 

21.3

 

10.5

 

Other revenue

 

77

 

81

 

(4.9

)

(5.2

)

Revenue

 

1,885

 

1,572

 

19.9

 

10.0

 

 

Note:

(1)   Organic growth includes India at the current level of ownership but excludes Australia following the merger with Hutchison 3 G Australia on 9 June 2009.

 

India

 

Service revenue grew by 13.7%(*), including a 1.5 percentage point(*) benefit from Indus Towers, representing an improvement on the previous quarter. Growth was driven by an increase in the customer base, with net additions for the quarter of 8.2 million, and increased usage per customer partially offset by ongoing competitive pressure on mobile voice pricing. The anniversary of the termination rate cut effective from April 2009 also contributed to the improvement.

 

Other Asia Pacific and Middle East

 

Service revenue increased by 5.4%(*) driven by continued growth in Qatar, partially offset by a 0.8%(*) service revenue decline in Egypt. Having launched commercial services in July 2009 Qatar increased its mobile customer base to 534,000 customers at 30 June 2010, representing 32% of the total population. The service revenue decline in Egypt was driven by the impact of severe competitive pricing pressure experienced through the second half of the previous financial year offset in part by an increase in the customer base and strong data revenue growth of 54.6%(*).

 

Vodafone Hutchison Australia Pty Limited continued to perform well with pro-forma service revenue growth of 9% and integration activities are on track, with cost synergies to date of £100 million, in line with management’s expectations.

 


 

OPERATING REVIEW

 

Verizon Wireless

 

Verizon Communications is expected to report its second quarter results including those of Verizon Wireless on 23 July 2010 at 1.30 p.m. GMT. The Group’s share of Verizon Wireless’ net mobile customer additions during the quarter was 0.6 million. The Group’s share of the closing customer base was 41.4 million.

 

As part of the regulatory approval for the Alltel acquisition, Verizon Wireless was required to divest overlapping properties in 105 markets. On 26 April 2010 Verizon Wireless completed the sale of network and licence assets in 26 markets to Atlantic Tele-Network for US$0.2 billion. On 22 June 2010 Verizon Wireless completed the sale of network assets and mobile licences in the remaining 79 markets to AT&T Mobility for US$2.4 billion. As a result, the Verizon Wireless customer base reduced by approximately 2.1 million net customers on a 100% basis, partially offset by certain adjustments in relation to the Alltel acquisition.

 

Other transactions and developments

 

India licence auction

 

On 19 May 2010 Vodafone secured 20 year licences for 2x5 MHz of 3G spectrum in nine circles in the Indian auction for a total price of INR 116.2 billion (£1.74 billion). These circles include Delhi, Mumbai, Kolkata and a further three ‘A’ circles and three ‘B’ circles providing a footprint covering 66% of Vodafone Essar Limited’s current revenue base.

 

Indian tax case

 

Vodafone International Holdings BV (‘VIHBV’) has filed a writ in the Bombay High Court challenging an order received from the Indian tax authorities confirming their view that they have jurisdiction to seek to recover withholding tax from VIHBV on the Hutchison transaction in 2007. The case is scheduled to be heard on 2 August 2010. VIHBV continues to believe that neither it nor any other member of the Group is liable for any tax and intends to defend this position vigorously.

 

Essar put arrangements

 

Vodafone agreed to adjust the payments that would be made under the fair market value put arrangements with the Essar group, in order to take account of the upfront cost of 3G licences, based on the total price of the licences secured. This amount has now been calculated as INR 34 billion (£510 million) and is payable in the event that the Essar group exercises its put option to sell some or all of its Vodafone Essar Limited shares at fair market value provided that the maximum aggregate amount payable shall not exceed US$5 billion. This additional amount is not payable in the event that the Essar group decides to sell its 33% shareholding in Vodafone Essar Limited at the underwritten value of US$5 billion.

 

German licence auction

 

On 20 May 2010 Vodafone acquired nationwide 15 year licences for 2x10 MHz of 800 MHz spectrum, 2x5 MHz of 2.1 GHz spectrum, 2x20 MHz of 2.6 GHz spectrum and 25 MHz of 2.6 GHz unpaired spectrum for a cost of €1.43 billion (£1.23 billion).

 

UK CFC Settlement

 

On 22 July 2010 Vodafone reached agreement with the UK tax authorities with respect to the CFC tax case. Vodafone will pay £1.25bn to settle all outstanding CFC issues from 2001 to date and has also reached agreement that no further UK CFC tax liabilities will arise in the near future under current legislation. Longer term, no CFC liabilities are expected to arise as a consequence of the likely reforms of the UK CFC regime due to the facts established in this agreement. The settlement comprises £800m in the current financial year with the balance to be paid in instalments over the following five years.

 


 

ADDITIONAL INFORMATION

 

Service revenue – quarter ended 30 June

 

 

 

 

 

 

 

 

 

 

 

 

 

Africa and

 

 

 

Asia Pacific and

 

 

 

 

 

 

 

 

 

 

 

 

 

Group

 

 

 

Europe

 

 

 

Central Europe

 

 

 

Middle East

 

 

 

 

 

 

 

 

 

 

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

6,937

 

6,946

 

4,040

 

4,538

 

1,530

 

1,232

 

1,366

 

1,177

 

 

 

 

 

 

 

 

 

Messaging revenue

 

1,222

 

1,144

 

897

 

903

 

177

 

127

 

148

 

113

 

 

 

 

 

 

 

 

 

Data revenue

 

1,168

 

888

 

852

 

708

 

171

 

90

 

145

 

90

 

 

 

 

 

 

 

 

 

Fixed line revenue

 

827

 

788

 

721

 

707

 

79

 

64

 

27

 

18

 

 

 

 

 

 

 

 

 

Other service revenue

 

433

 

325

 

257

 

208

 

84

 

60

 

122

 

93

 

 

 

 

 

 

 

 

 

Service revenue

 

10,587

 

10,091

 

6,767

 

7,064

 

2,041

 

1,573

 

1,808

 

1,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Africa and

 

 

 

Asia Pacific and

 

 

 

 

 

 

 

 

 

 

 

 

 

Group

 

 

 

Europe

 

 

 

Central Europe

 

 

 

Middle East

 

 

 

 

 

 

 

 

 

 

 

Reported

 

Organic

 

Reported

 

Organic

 

Reported

 

Organic

 

Reported

 

Organic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

(0.1

)

(4.3

)

(11.0

)

(8.6

)

24.2

 

(0.2

)

16.1

 

7.5

 

 

 

 

 

 

 

 

 

Messaging revenue

 

6.8

 

4.8

 

(0.7

)

1.5

 

39.4

 

14.2

 

31.0

 

25.8

 

 

 

 

 

 

 

 

 

Data revenue

 

31.5

 

25.4

 

20.3

 

23.3

 

90.0

 

38.3

 

61.1

 

24.0

 

 

 

 

 

 

 

 

 

Fixed line revenue

 

4.9

 

4.5

 

2.0

 

5.2

 

23.4

 

(9.2

)

50.0

 

29.8

 

 

 

 

 

 

 

 

 

Other service revenue

 

33.2

 

29.4

 

23.6

 

26.0

 

40.0

 

20.4

 

31.2

 

18.6

 

 

 

 

 

 

 

 

 

Service revenue

 

4.9

 

1.1

 

(4.2

)

(1.7

)

29.8

 

3.7

 

21.3

 

10.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

 

 

Italy

 

 

 

Spain

 

 

 

UK

 

 

 

Vodacom

 

 

 

India

 

 

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

 

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

888

 

984

 

861

 

952

 

872

 

983

 

637

 

726

 

841

 

570

 

775

 

632

 

Messaging revenue

 

190

 

193

 

201

 

222

 

89

 

101

 

273

 

236

 

74

 

42

 

39

 

22

 

Data revenue

 

289

 

227

 

136

 

115

 

129

 

117

 

175

 

137

 

120

 

50

 

55

 

43

 

Fixed line revenue

 

449

 

462

 

139

 

128

 

81

 

77

 

8

 

7

 

47

 

41

 

2

 

 

Other service revenue

 

33

 

37

 

34

 

34

 

48

 

62

 

102

 

80

 

51

 

22

 

83

 

58

 

Service revenue

 

1,849

 

1,903

 

1,371

 

1,451

 

1,219

 

1,340

 

1,195

 

1,186

 

1,133

 

725

 

954

 

755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

 

 

 

 

Germany

 

 

 

Italy

 

 

 

Spain

 

 

 

UK

 

 

 

Vodacom

 

 

 

India

 

 

 

Reported

 

Organic

 

Reported

 

Organic

 

Reported

 

Organic

 

Reported

 

Organic

 

Reported

 

Organic

 

Reported

 

Organic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue

 

(2.8

)

0.2

 

(5.5

)

(2.5

)

(9.0

)

(6.2

)

0.7

 

0.7

 

56.3

 

4.0

 

26.4

 

13.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

ADDITIONAL INFORMATION

 

Mobile customers – quarter ended 30 June 2010(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

1 April

 

Net

 

Other

 

30 June

 

 

 

Country

 

2010

 

additions

 

movements

 

2010

 

 

Prepaid

Europe

 

 

 

 

 

 

 

 

 

 

 

Germany

 

34,538

 

336

 

 

34,874

 

 

53.9%

Italy

 

23,248

 

98

 

 

23,346

 

 

85.8%

Spain

 

16,745

 

82

 

 

16,827

 

 

37.2%

UK

 

19,017

 

(163

)

 

18,854

 

 

52.7%

 

 

93,548

 

353

 

 

93,901

 

 

60.5%

Other Europe

 

 

 

 

 

 

 

 

 

 

 

Albania

 

1,680

 

(1

)

 

1,679

 

 

93.7%

Greece

 

6,023

 

(531

)

 

5,492

 

 

69.5%

Ireland

 

2,145

 

6

 

 

2,151

 

 

67.0%

Malta

 

228

 

11

 

 

239

 

 

84.9%

Netherlands

 

4,707

 

50

 

 

4,757

 

 

39.4%

Portugal

 

5,952

 

32

 

 

5,984

 

 

80.5%

 

 

20,735

 

(433

)

 

20,302

 

 

67.6%

Europe

 

114,283

 

(80

)

 

114,203

 

 

61.7%

 

 

 

 

 

 

 

 

 

 

 

 

Africa and Central Europe

 

 

 

 

 

 

 

 

 

 

 

Vodacom(2)(3)

 

39,892

 

1,152

 

(3,322

)

37,722

 

 

87.3%

Czech Republic

 

3,007

 

33

 

 

3,040

 

 

46.5%

Ghana

 

2,825

 

(84

)

 

2,741

 

 

99.5%

Hungary

 

2,618

 

(19

)

 

2,599

 

 

54.8%

Poland

 

3,347

 

(3

)

 

3,344

 

 

47.9%

Romania

 

9,730

 

89

 

 

9,819

 

 

62.4%

Turkey

 

15,829

 

319

 

 

16,148

 

 

81.1%

Africa and Central Europe

 

77,248

 

1,487

 

(3,322

)

75,413

 

 

75.0%

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific and Middle East

 

 

 

 

 

 

 

 

 

 

 

India(4)

 

100,858

 

8,203

 

 

109,061

 

 

94.7%

Australia(3)

 

3,525

 

44

 

(18

)

3,551

 

 

45.3%

Egypt

 

24,605

 

1,186

 

 

25,791

 

 

95.9%

Fiji

 

369

 

(11

)

 

358

 

 

96.4%

New Zealand

 

2,504

 

(25

)

 

2,479

 

 

69.5%

Qatar

 

465

 

69

 

 

534

 

 

94.2%

Asia Pacific and Middle East

 

132,326

 

9,466

 

(18

)

141,774

 

 

92.1%

Group

 

323,857

 

10,873

 

(3,340

)

331,390

 

 

77.5%

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to proportionate

 

 

 

 

 

 

 

 

 

 

 

Group

 

323,857

 

10,873

 

(3,340

)

331,390

 

 

 

Non-controlling interests subsidiaries

 

(62,486

)

(3,874

)

1,163

 

(65,197

)

 

 

Verizon Wireless(5)

 

41,760

 

608

 

(940

)

41,428

 

 

9.6%

Other associates and investments

 

38,014

 

1,171

 

 

39,185

 

 

97.5%

Proportionate

 

341,145

 

8,778

 

(3,117

)

346,806

 

 

84.5%

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

123,160

 

(5

)

 

123,155

 

 

58.4%

Africa and Central Europe

 

65,831

 

1,089

 

(2,159

)

64,761

 

 

78.8%

Asia Pacific and Middle East

 

110,394

 

7,086

 

(18

)

117,462

 

 

97.9%

Verizon Wireless

 

41,760

 

608

 

(940

)

41,428

 

 

9.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

(1)          Group customers represent subsidiaries on a 100% basis and joint ventures (being Italy, Poland, Australia and Fiji) based on the Group’s equity interests. Proportionate customers are based on the Group’s equity interests in subsidiaries, joint ventures, associates and other investments. Further details of the Group’s equity interests are provided in notes 12 to 15 of the consolidated financial statements included within the Group’s 2010 annual report.

(2)          Vodacom refers to the Group’s interests in Vodacom Group Limited and its subsidiaries, including those located outside of South Africa.

(3)          Other movements in Vodacom relate to a change in their disconnection policy and other movements in Australia relate to the sale of customers.

(4)          Proportionate customers are based on equity interests at 30 June 2010. However the calculation of proportionate customers for India also assumes the exercise of call options that could increase the Group’s aggregate direct and indirect equity interest from 59.93% to 66.98%. These call options can only be exercised in accordance with Indian law prevailing at the time of exercise.

(5)          Other movements in Verizon Wireless relate to the divestment of certain Alltel properties.

 


 

ADDITIONAL INFORMATION

 

Annualised mobile customer churn – quarter ended 30 June 2010

 

Country

 

Contract

Prepaid

Total

Germany

 

16.9%

32.2%

25.1%

Italy

 

25.3%

24.3%

24.4%

Spain

 

18.9%

43.7%

28.2%

UK

 

15.5%

61.3%

40.1%

Vodacom(1)(2)

 

10.0%

86.3%

76.9%

India

 

24.8%

39.6%

38.8%

Notes:

(1)          Vodacom refers to the Group’s interests in Vodacom Group Limited and its subsidiaries, including those located outside of South Africa.

(2)          The customer churn for Vodacom in the quarter ended 30 June 2010 includes the effect of one-off disconnections of 3,322,000 prepaid customers. The underlying prepaid customer churn excluding this change was 46.5% and total churn was 42.0%.

 

OTHER INFORMATION

 

Notes:

1.             Vodafone, the Vodafone logo, Vodafone Station and Vodacom are trade marks of the Vodafone Group. Other product and company names mentioned herein may be the trade marks of their respective owners.

2.             All growth rates reflect a comparison to the quarter ended 30 June 2009 unless otherwise stated. References to the “fourth” or “previous quarter” are to the quarter ended 31 March 2010 unless otherwise stated. References to the “first quarter” are to the quarter ended 30 June 2010 unless otherwise stated.

3.             All amounts marked with an “(*)” represent organic growth which presents performance on a comparable basis, both in terms of merger and acquisition activity and foreign exchange rates. All relevant calculations of organic growth include Vodacom at the current level of ownership and exclude all results of the Group’s business in Australia.

4.             Reported growth is based on amounts in pounds sterling as determined under IFRS.

5.             Quarterly historical information including service revenue, customers, churn, voice usage and ARPU is provided in a spreadsheet available at www.vodafone.com/investor.

 

Forward-looking statements

This document contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 which are subject to risks and uncertainties because they relate to future events. In particular, such forward-looking statements include but are not limited to: statements with respect to Vodafone’s expectations as to savings from cost reduction programmes, including the working capital improvement programme; statements with respect to Vodafone’s dividend growth policy; expectations as to levels of capital expenditure and operating expenditure; the anticipated impact of foreign exchange rate movements on the Group’s results for the current fiscal year; the Group’s expectations regarding its financial and operating performance, including adjusted operating profit, free cash flow, EBITDA and EBITDA margins; the impact of reduced mobile termination rates; and expectations regarding market trends including price trends. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, Vodafone’s ability to realise anticipated cost savings, the impact of legal or other proceedings, continued growth in the market for mobile services and general economic conditions.

 

Furthermore, a review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the heading “Forward-looking statements” and “Principal risk factors and uncertainties” in Vodafone Group Plc’s annual report for the year ended 31 March 2010. The annual report can be found on the Group’s website (www.vodafone.com/investor). All subsequent written or oral forward-looking statements attributable to Vodafone or any member of the Group or any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward-looking statements in this press release will be realised. Except as otherwise stated herein and as may be required to comply with applicable law and regulations, Vodafone does not intend to update these forward-looking statements and does not undertake any obligation to do so.

 

For further information:

 

 

 

 

Vodafone Group Plc

 

 

 

 

Investor Relations

 

 

 

Media Relations

Telephone: +44 1635 33251

 

 

 

Telephone: +44 1635 664 444

 

-ends-

 


 

 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

 

 

 

 

VODAFONE GROUP

 

 

PUBLIC LIMITED COMPANY

 

 

(Registrant)

 

 

 

 

 

 

Dated July 23, 2010

By:

/s/ R E S MARTIN

 

 

Name:

Rosemary E S Martin

 

 

Title:

Group General Counsel and Company

 

 

 

Secretary

 

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