Vodafone’s UK revenue holds up as European markets dip.

Fall in roaming activity hits financial performances in Germany, Italy and Spain

Vodafone’s UK revenue bumped up 5.3 per cent for the third quarter in its last financial year and it added 94,000 contract contractors while its European business slumped.

But there were revenue declines in Germany (down 1.8 per cent), Italy (down 3.3 per cent) and Spain (down 8.7 per cent) partly due to lower roaming growth.

Contract churn rose by 0.9 per cent to 13.4 per cent due to a major public sector business client cancelling low-usage SIMs the network revealed in its Q3 trading update.

The network’s fixed broadband base increased by 47,000 in the quarter to a total of 1.2 million broadband customers more than half of which are converged. Partnerships with CityFibre and Openreach have given Vodafone a broadband reach of 10.5 million households with full-fibre broadband, claimed to be more than any other provider in the UK.

Commented Neil Shah, Executive Director of Content and Strategy at consultancy firm Edison Group.

“These results will give cause for optimism and concern.  Vodafone’s continental Europe operations continue to slow as expected whilst its performance in other emerging markets remains resilient  This is the first public challenge which Vodafone’s interim chief executive Margherita Della Vallehas faced since her appointment late last year. She faces a daunting in-tray, with the European telecoms industry going through a period of heightened financial uncertainty in which some of the leading groups have seen their valuations almost half

“Declines in Germany, Italy and Spain were partially offset by good growth in UK, with service revenue increasing by 5.3 per cent as a result of good customer growth and price increases. Investors have however been keeping a close eye on developments in Germany, which have proved a thorn in the side of the interim chief executives back ever since her appointment”, said Shah.