Total revenue at Vodafone fell by 3.6% to €11.8 billion in the quarter ending 31 December, driven by the deconsolidation of Vodafone Netherlands and FX movements. Organic service revenue grew 1.1% to €10.2 billion, a similar performance to the prior quarter (1.3%). In Europe, reported revenue decreased 2.8%, with a 5.3 percentage point negative impact from the deconsolidation of Vodafone Netherlands, while foreign exchange movements contributed a 0.4 percentage point negative impact. On an organic basis, service revenue growth moderated to 0.3% (Q2: 0.8%) or 1.9% (Q2: 2.4%) excluding the drag from regulation and the impact of handset financing in the UK. This growth was driven by market share gains in fixed, where revenues grew 4.4% (Q2: 4.7%* and now constitute 29% of European service revenues. A robust performance in Germany was offset by lapping of tariff changes in Italy and higher promotional intensity in Spain. European mobile service revenue declined by 1.3% (Q2: -0.6%) due to the drag from regulation and the impact of UK handset financing; excluding these factors, mobile service revenue grew 0.9% (Q2: 1.5%) following the implementation of the "more-for-more" mobile data propositions. AMAP growth accelerated to 6.8%, driven by broad based improvement at Vodacom. India declined by 23.1% due to intense price competition and lower termination rates. The company has reiterated its full year guidance of organic adjusted EBITDA growth of around 10%. Vittorio Colao, group chief executive, said: "We made strong progress with our fixed and convergence strategy, achieving our best ever quarter for customer growth in high speed broadband in Europe. "We also continued to grow our Enterprise business - boosted by our world-leading Internet of Things platform - despite the impact of regulation. As a result our service revenue growth was similar to last quarter. "An improved performance at Vodacom helped to offset a more promotional quarter in some European countries, particularly in Spain. While the competitive and regulatory environment in India remains intense, we continue to make good progress in securing the required approvals for the merger with Idea Cellular, and we have taken steps to strengthen the combined company's financial position. "Overall, this consistent performance underpins our confidence that we will meet our guidance for the full year."
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