Voda to cut £1bn in annual costs

Vodafone is to cut £1 billion a year of costs through to 2011, it said on the back of reporting a slide in organic group profits of 3.2 per cent and UK profits of 14.2 per cent for the six months to September 30.

Vodafone’s group revenue growth for the period, up 17.1 per cent to £19.9 billion, was largely down to foreign currency benefits.

UK revenue was down 1.1 per cent at £2.5 billion, with a decline in voice revenue of £138 million and a jump in data revenue of £53 million.

It had 18.7 million UK customers at September 31, up 207,000 in the quarter. UK contract churn was down 0.5 per cent, to 17.5 per cent, but contract ARPU was down £0.70 to £40.50.

Read’s message was a warning shot to staff to raise their game through March 31, Vodafone’s year-end.

Full analysis in Mobile News issue 427 (November 17, 2008).

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