Group reaches 10mn unlimited data mobile users across 10 markets
Vodafone’s group service revenue returned to growth in the third quarter of 2020, and it has maintained its full year profit outlook, although its roaming revenues remained depressed.
The group’s revenue for the quarter fell 4.7 per cent year-on-year to €11.2 billion (£ billion), while service revenue fell 3.9 per cent to €9.4 billion. However, service revenue did increase 0.4 per cent on the previous quarter.
Most of Vodafone’s European territories saw falls in service revenues, with the exception of Germany, which saw a one per cent growth to €2.9 billion. The UK saw a decline of 0.4 per cent (with a 3.6 per cent decline in mobile revenues offset by a 7.6 per cent growth in fixed revenues), while Italy saw the biggest fall of 7.8 per cent.
This decline in Europe was offset by 3.3 per cent growth at Vodacom and a 12.3 per cent growth in Vodafone’s other markets.
Vodafone said that speed-based mobile plans in its mature markets had helped drive ARPU increases in these markets, with 10 million active unlimited mobile data customers across 10 markets.
The operating group is also still on track to commercialise its Cornerstone tower venture, saying it had transferred its 50 per cent share to Vantage Towers on January 14.
“I am pleased the Group returned to service revenue growth in Q3 as a result of the continued commercial momentum across our business, including our largest market Germany,” said Vodafone Group CEO Nick Read.
“Our good trading performance underscores our confidence in the outlook for the full year. We have made further progress on our strategic priorities, including the IPO of Vantage Towers in early 2021, which remains firmly on track and will now include our 50% shareholding in the UK towers joint venture with Telefonica.
“Our networks have successfully delivered another quarter of record data traffic as many countries continue to endure COVID-19 lockdowns and customers depend on our services. We have achieved this while further reducing our carbon footprint and we are making fast progress towards our important target of having our European networks wholly powered by renewable electricity by July this year.”