Coronavirus Update

Vodafone PLC: Q3 FY21 Trading Update

This content has been sourced from: https://www.investegate.co.uk/vodafone-group-plc--...

Return to service revenue growth and FY21 guidance reiterated

· Resilient trading performance, with service revenue growth of 0.4%* (Q2: -0.4%*)

· Continued commercial momentum, despite further lockdown measures

· Germany service revenue growth of 1.0%* (Q2: -0.1%*), with growth across all segments in the market

· Deepening customer engagement with year-to-date Europe mobile contract churn 1.1 percentage points lower year-on-year

· Strong demand for high-speed connectivity, with 330,000 NGN broadband customer additions in Europe during the quarter, bringing year-to-date total NGN additions to over 1.1 million

Q3 performance summary

Q3 FY21

Q3 FY20

Reported

Organic

€m 

€m 

growth

growth 1

Service revenue 1

 

 

 

 

Total Europe

7,404

7,586

(2.4)%

(1.1)%

 - of which Germany

2,912

2,883

1.0%

1.0%

Vodacom

1,056

1,162

(9.1)%

3.3%

Other Markets

806

891

(9.5)%

12.3%

Other / Eliminations

91

94

 

 

Total service revenue

9,357

9,733

(3.9)%

0.4%

Other revenue

1,844

2,017

 

 

Total revenue

11,201

11,750

(4.7)%

(0.3)%

 

 

 

 

 

 

 

           

· Underlying trends excluding the impact from lower roaming and visitors were broadly similar quarter-on-quarter

· Reaffirming FY21 guidance with Adjusted EBITDA expected to be between €14.4 - €14.6 billion and free cash flow of at least €5 billion (pre-spectrum and restructuring)

Nick Read, Group Chief Executive, commented:

"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. 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.

I continue to be proud of the hard work of my colleagues, and that of the industry more broadly, who have kept societies connected and supported key sectors such as education and healthcare. Vodafone has now contributed over €150 million since the start of the pandemic, through direct contributions and in-kind services to those in need, and we will continue to help society recover and build back stronger."

 

Operating review ?   Maintaining commercial momentum during lockdowns

During the quarter, we continued to make progress against our strategic priorities to deepen engagement with our customers, accelerate our transformation to a digital first organisation, improve the utilisation of our assets, and optimise our portfolio.

Strategic progress summary

 

Units

Q3 FY21

Q3 FY20

1.  Deepening customer engagement

 

 

 

 

Europe mobile contract customers1

 

million

65.4

64.2

Europe broadband customers1

 

million

25.5

24.7

Europe Consumer converged customers1

 

million

7.5

7.0

Europe on-net Gigabit capable connections1

 

million

40.7

25.5

Europe mobile contract customer churn2

 

%

15.0

15.0

Business fixed-line service revenue growth

 

%

5.2

4.4

IoT SIM connections

 

million

118

99

Africa data users3

 

million

85.8

85.1

M-Pesa transaction volume

 

billion

4.2

3.2

 

 

 

 

 

2.  Accelerating digital transformation

 

 

 

 

Europe digital channel sales mix4

 

%

26

21

Europe frequency of customer contacts p.a.

 

#

1.4

1.5

Europe MyVodafone app penetration

 

%

62

65

 

 

 

 

 

3.  Improving asset utilisation

 

 

 

 

Average Europe monthly mobile data usage per customer

 

GB

6.7

4.5

Europe on-net NGN broadband penetration1

 

%

30.2

29.7

1. Including VodafoneZiggo | 2. Q3 FY20 excludes inactive SIM impact in Italy | 3. Africa including Safaricom, Ghana & Egypt | 4. Germany, Italy, UK and Spain only

In Consumer, we are competing effectively across all market segments, with speed-tiered unlimited mobile data plans driving ARPU accretion at the high end, and with second brands in the value segment. We now have 10 million active unlimited mobile data customers across 10 markets. In fixed broadband, there has been strong demand for high-speed connectivity, with over 1.1 million NGN broadband customers added in Europe year-to-date, taking our total NGN broadband base to 22.6 million.

In Business, we have continued to provide SME, large, multi-national and public sector customers with a full suite of next-generation connectivity services in order to keep them connected. Service revenue grew 0.7%* (Q2: -0.2%*) and we added a record six million IoT SIM connections. During the quarter, we announced a strategic partnership with RingCentral and will be launching a joint cloud-based Unified Communications as a Service solution in 2021. We also announced the first Multi-access Edge Computing pilots in Europe, in partnership with Amazon Web Services Wavelength. We will share further insight into Vodafone Business with a virtual investor briefing and live Q&A session hosted by Vinod Kumar (Vodafone Business CEO) on 18 March 2021.

Our investments in digital platforms have led to an increasing share of digital sales, with 50% of new iPhone sales in the UK completed digitally. The MyVodafone app has helped us stay connected with our customers; the app now has 40 million unique customers and receives 500 million visits per month. In January, we announced a new long-term, multi-platform agreement with Discovery, Inc, under which approximately 100 million Vodafone customers in Europe will be able to enjoy Discovery's unique content portfolio across TV and streaming services.

We have continued to improve our asset utilisation through network sharing. During the quarter, Vodafone Germany signed a Memorandum of Understanding with Telefonica Deutschland, outlining a proposed reciprocal network sharing agreement to improve 4G coverage in areas where only one party operates ('grey spots'). 

In December 2020, Vodafone's wholly owned subsidiary, Vodafone Vierte Verwaltungs AG, announced a settlement with three minority shareholders and launched a tender offer to the remaining shareholders of Kabel Deutschland Holding AG ('KDG'). Through irrevocable undertakings with three minority KDG shareholders, Vodafone will own at least 93.8% of the outstanding share capital of KDG following completion of the offer. The transaction will be immediately accretive for both Adjusted EPS and Free Cash Flow per share and will be neutral to our credit rating.

The Vantage Towers IPO remains on track and the team will present its Q3 trading update on 15 February 2021.

Our Purpose   ?   We connect for a better future

We believe that Vodafone has a significant role to play in building a digital society that enhances socio-economic progress, embraces everyone and does not come at the cost of the planet. Our sustainable business strategy helps deliver our 2025 targets across three pillars: Digital Society; Inclusion for All; and Planet.

Our significant role has become even more evident during the COVID-19 pandemic, as our essential network infrastructure has been critical in enabling people to work, allowing businesses to remain operational, supporting emergency services and giving access to education. Through our essential network infrastructure, we have kept people and societies connected. We have also donated over €150 million to support those affected by the crisis through direct contributions and services in-kind, supporting millions of our customers, frontline workers and citizens.   The Vodafone Foundation has also donated €10 million to local charities in our markets in the form of cash grants, gifts in-kind and from employee donations via the community fund.

In November 2020, we announced a further update with respect to our long-term ambition to minimise our environmental impact. We have committed to reducing our total global carbon emissions to 'net zero' by 2040 and confirmed that our 2030 carbon reduction targets have been approved by the Science Based Targets initiative. Our targets are in line with reductions required to keep warming to 1.5°C, the most ambitious goal of the Paris Agreement.

This builds on a commitment we made in July 2020 to power 100% of our European network with renewable electricity by July 2021, creating a 'Green Gigabit Net' for customers across 11 markets that will grow sustainably using only power from wind, solar or hydro sources. Our accelerated shift to 100% renewable electricity on our European network will also help our customers reduce their carbon emissions, particularly our Business customers, while helping to create a healthier planet for everyone. By the end of December 2020, Germany, Italy and three of our Other Europe markets were already procuring 100% of their electricity from renewable sources.

In December 2020, we were recognised by global environmental non-profit organisation CDP for our actions and transparency with respect to our environmental impact and secured a place on CDP's prestigious climate change 'A List'. This places us in the top 5% of companies that responded to CDP's 2020 climate change questionnaire.

 

Performance review ?   Return to growth, supported by Germany

· Resilient trading performance, with service revenue growth of 0.4%* (Q2: -0.4%*)

· Continued commercial momentum, despite further lockdown measures

· Germany service revenue growth of 1.0%* (Q2: -0.1%*), with growth across all segments in the market

· Reaffirming FY21 guidance with Adjusted EBITDA expected to be between €14.4 - €14.6 billion and free cash flow of at least €5 billion (pre-spectrum and restructuring)

Q3 performance summary

 

 

 

 

Other

Total

 

Other

 

Germany

Italy

UK

Spain

Europe

Europe 1

Vodacom

markets

Group 1

 m

 m

 m

 m

 m

 m

 m

 m

 m

Q3 FY21

 

 

 

 

 

 

 

 

 

Service revenue2

2,912 

1,125 

1,216 

957 

1,215 

7,404 

1,056 

806 

9,357 

Other revenue

423 

139 

380 

102 

207 

1,251 

296 

117 

1,844 

Total revenue

3,335 

1,264 

1,596 

1,059 

1,422 

8,655 

1,352 

923 

11,201 

Organic service revenue growth (%)2

1.0 %

(7.8)%

(0.4)%

(1.1)%

(0.7)%

(1.1)%

3.3 %

12.3 %

0.4 %

 

 

 

 

 

 

 

 

 

 

 

Q3 FY20

 

 

 

 

 

 

 

 

 

Service revenue2

2,883 

1,220 

1,282 

966 

1,265 

7,586 

1,162 

891 

9,733 

Other revenue

416 

209 

443 

112 

204 

1,384 

290 

136 

2,017 

Total revenue

3,299 

1,429 

1,725 

1,078 

1,469 

8,970 

1,452 

1,027 

11,750 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in the commentary below marked with an "*" represent organic growth, which presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates. Organic growth is an alternative performance measure. .

Germany- Consistent commercial performance, with growth across all segments

Service revenue grew by 1.0%* (Q2: -0.1%*), with growth across all segments in the quarter. This was driven by our consistent commercial performance, higher variable usage during the COVID-19 lockdown, a strong performance in Business and a smaller decline in roaming and visitor revenue. The year-on-year impact from the decline in roaming and visitor revenue was -1.0 percentage points in Q3 (Q2: -1.1 percentage points). Retail service revenue grew by 1.5%* (Q2: +0.6%*).

Fixed service revenue grew by 1.4%* (Q2: +0.6%*), driven by customer base growth and ARPU accretive customer upgrades to higher-speed plans, supported by higher variable usage during the pandemic lockdown. We added 98,000 cable broadband customers in Q3, including 35,000 migrations from legacy broadband DSL. A quarter of our cable broadband customer base now subscribes to speeds of at least 400Mbps, and Gigabit speeds are now available to 22.3 million households on our cable broadband network. Our broadband customer base increased by 56,000 to 10.9 million despite our retail stores being closed in December due to the COVID-19 pandemic.

Our TV customer base declined by 75,000, in part reflecting the termination of a bulk contract. We launched the 'DAZN' pay-TV channel and our new Apple set-top box product during the quarter, which are beginning to support an improved premium TV performance. However, retail sales activity was impacted by the December lockdown in response to the COVID-19 pandemic. Our converged 'GigaKombi' proposition, which allows customers to combine their mobile, landline, broadband and TV subscriptions for one monthly fee, continued to grow, with 28,000 Consumer additions in the quarter. We now have over 1.6 million Consumer converged accounts.

Mobile service revenue increased by 0.5%* (Q2: -1.0%*), with the improvement driven by higher variable usage, increased demand from business customers, and a smaller impact from the decline in roaming and visitor revenue, partially offset by lower prepaid revenue. We added 99,000 contract customers in Q3 despite the lockdown, supported by strong Consumer and public sector demand. Contract churn improved by 1.0 percentage points year-on-year to 12.0%. We added 122,000 prepaid customers, supported by our online-only proposition 'CallYa Digital'.

Italy, UK, Spain and Other Europe. Lower COVID impacts, with stable underlying performance

Italy

Service revenue declined by 7.8%* (Q2: -8.0%*) reflecting continued price competition in the low-value segment of the mobile market and lower roaming and visitor revenue. The year-on-year impact from the decline in roaming and visitor revenue was -1.9 percentage points in Q3 (Q2: -2.4 percentage points).

Market net mobile number portability ('MNP') volumes fell as a result of local lockdowns during the quarter. Our second brand 'ho.' continued to grow strongly and now has 2.4 million customers. During the year, we signed mobile wholesale agreements with PostePay and Digi, and we will begin to migrate these customers onto our network in Q4.

Fixed service revenue grew by 1.1%* (Q2: +4.8%), with the quarterly slowdown driven by the lapping of prior year price increases. In fixed, we added 13,000 customers to our broadband customer base and we now have almost three million broadband customers. Through our own next generation network and strategic partnership with Open Fiber, our broadband services are now available to 8.3 million households. We also cover nearly three million other households with fixed-wireless access.

UK

Service revenue decreased by 0.4%* (Q2: -0.5%*) as continued good commercial momentum in our Consumer and Business segments was offset by the impact from the decline in roaming and visitor revenue of -2.3 percentage points (Q2: -2.8 percentage points).

Our mobile contract customer base increased by 77,000 driven by strong iPhone demand in Consumer and higher contract customer loyalty, with churn declining by 0.4 percentage points year-on-year to 14.4%. Our digital second brand 'VOXI' continued to grow, with 52,000 customer additions during Q3, supported by the launch of our 'endless video' proposition.

We had a good performance in fixed broadband, despite increased promotional activity during the Black Friday period, with 38,000 net customer additions. We now have 876,000 broadband customers, of which 450,000 are converged customers. Business demand for our SME and corporate products remained strong, including for our virtual call centres and our productivity and security solutions, supported by our best-in-class Business net promoter scores.

To support our continued investment in our networks, products and services, we announced that annual price increases of Consumer Price Index plus 3.9% will be applied to all broadband and mobile contracts signed from 9 December 2020, taking effect from April 2021.

During the quarter we also launched our 'schools.connected' programme with a goal of helping disadvantaged school children access education from home. We have provided 350,000 free SIMs to schools and further education colleges since the launch in November.

In December 2020, we announced that the CEO of Vodafone UK, Nick Jeffery, would leave in February 2021 to take up a new position outside Vodafone. We have announced that Ahmed Essam will become the new CEO of Vodafone UK effective 1 February and will remain on the Vodafone Group Executive Committee. Ahmed joined Vodafone in 1999 and has held a range of leadership roles across the Group, most recently as Group Chief Commercial Operations and Strategy Officer.

In January 2021, we announced the commercialisation of Cornerstone, the 50:50 joint venture between Vodafone and Telefonica ('TEF UK') that owns and manages both operators' passive tower infrastructure in the UK. Vodafone UK and TEF UK have each entered into long-term Master Services Agreements with Cornerstone. To facilitate the effective roll-out of 5G technology and meet coverage obligations, Vodafone UK and TEF UK have agreed to commit as anchor tenants on c.1,200 new macro sites to be constructed by Cornerstone and c.1,950 new passive tenancies on existing macro sites operated by Cornerstone. Vodafone transferred its 50% shareholding in Cornerstone to Vantage Towers on 14 January 2021.

 

Spain

Service revenue declined by 1.1%* (Q2: -1.8%*) reflecting price competition in the market and the impact of the COVID-19 pandemic on roaming and visitor revenue. The quarter-on-quarter improvement was driven by a lower impact from the decline in roaming and visitor revenue, partially offset by the impact of COVID-19 restrictions on the hospitality sector during the quarter. The year-on-year impact from the decline in roaming and visitors was -1.7 percentage points in Q3 (Q2: -3.0 percentage points).

The market remained highly promotional in Q3, driving an increase in mobile number portability year-on-year. Our mobile contract customer base decreased by 45,000 and mobile contract churn increased by 2.9 percentage points year-on-year to 24.9%, partially reflecting the anticipated impact of our mid-November pricing actions. Commercial trends improved towards the end of the quarter as seasonal promotions ended. Our second brand 'Lowi' continued to compete effectively, with 49,000 net customer additions. Lowi now has 1.1 million customers.

Our broadband customer base declined by 22,000 reflecting the impact of our pricing actions and higher competitive intensity during the promotional 'back to school' period, as well as the 'catch-up' in disconnections from the prior quarter. Our extensive library of movies and TV series, as well as our new 'boxless' TV app proposition, supported continued good customer growth in TV with 46,000 customers added in Q3.

In November 2020, we announced that Antonio Coimbra had stepped down as CEO of Vodafone Spain and was appointed as Non-Executive Chairman. On the same day, Colman Deegan was appointed as the new CEO of Vodafone Spain and joined the Vodafone Group Executive Committee. Colman joined Vodafone in 1998 and has held a range of senior finance and leadership roles across the Group, most recently as CEO of Vodafone Turkey.

Other Europe

Service revenue declined by 0.7%* (Q2: -1.8%*) driven by lower roaming and visitor revenue and increased competition in some markets. The quarter-on-quarter improvement reflects a lower impact from the decline in roaming and visitor revenue and higher prepay usage as lockdown restrictions were eased, as well as improved performance in Ireland. The impact from the decline in roaming and visitor revenue was -1.8 percentage points in Q3 (Q2: -2.5 percentage points).

In Portugal, service revenue was broadly stable at -0.1%* (Q2: +0.3%*) as fixed and mobile contract customer growth was offset by lower roaming and visitor revenue. In October 2020, we announced a nationwide mobile network sharing agreement with NOS, which will allow a faster and more efficient development of mobile networks across Portugal. In Ireland, service revenue declined by 2.2%* (Q2: -6.1%*), with the sequential improvement driven by good performance in Consumer and the anniversary of the prior year market repricing. Service revenue in Greece declined by 3.5%* (Q2: -6.1%*) reflecting the decline in roaming and visitors and higher promotional activity.

We have continued to make good progress on integrating Liberty Global's assets in Germany and Central Eastern Europe and we remain on track to deliver our targeted synergies.

 

Other Markets-   Acceleration in trends

Service revenue in our Other Markets grew by 12.3%* (Q2: +9.0%*).

Service revenue in Turkey grew by 17.7%* (Q2: +13.9%*), ahead of inflation, reflecting an improvement in roaming and visitor revenue, increased demand for mobile data and fixed broadband, and 'more-for-more' initiatives. We maintained our good commercial momentum, with 315,000 mobile contract and 57,000 broadband net additions during the quarter.

Service revenue in Egypt grew by 8.8%* (Q2: +4.9%*), ahead of inflation, supported by customer base growth, increased mobile data usage, and the impact of a prior year settlement. In November 2020, we announced that Vodafone Egypt had acquired 40MHz of 2.6Ghz spectrum, with a 10-year licence through to 2030. The spectrum will enable us to significantly expand network capacity to meet growing demand for reliable, high quality voice and data services.

Vodacom-   Strong demand in South Africa, with international markets recovering

Vodacom service revenue grew by 3.3%* (Q2: +3.2%*) with growth in South Africa partially offset by ongoing economic pressure in Vodacom's international markets.

In South Africa, service revenue grew by 5.4%* (Q2: +7.7%*) supported by increased demand for voice, data and financial services. The slowdown in quarterly trends reflects the expiry of some special government social grants introduced at the start of the COVID-19 pandemic and a redirection of consumer discretionary spend as lockdown measures eased. In South Africa, we added 29,000 contract customers, driven by strong business demand, and added 2.1 million prepaid customers supported by our successful 'Shake-off' campaign. Data traffic increased by 50% year-on-year in Q3 and 47% of our customer base is now using data services. Our 'ConnectU' platform continues to promote digital inclusion via zero-rated access to a wide range of websites, including job portals and online learning platforms, with total unique users reaching 13.4 million as at 31 December 2020. In January 2021, we announced an expanded roaming agreement with Cell-C with respect to its mobile contract and mobile broadband customers.

In Vodacom's international markets, service revenue declined by 0.3%* (Q2: -4.9%*) reflecting ongoing economic pressures. The improvement in quarterly trends was driven by the reinstatement of fees on person-to-person M-Pesa transfers in Mozambique and improving economic activity in most markets. Digital adoption across Vodacom's international markets accelerated with higher M-Pesa volumes, M-Pesa revenue as a share of total service revenue increasing by 1.7 percentage points to 22%, and 53% of our customer base is using data services. By January 2021, the temporary zero-rating of fees on M-Pesa person-to-person transfers had ended across all Vodacom's markets.

 

Alternative performance measures

In the discussion of the Group's reported operating results, alternative performance measures are presented to provide readers with additional financial information that is regularly reviewed by management. This additional information presented is not uniformly defined by all companies, including those in the Group's industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. Additionally, certain information presented is derived from amounts calculated in accordance with IFRS but is not itself an expressly permitted GAAP measure. Such measures should not be viewed in isolation or as an alternative to the equivalent GAAP measure.

Service revenue

Service revenue comprises all revenue related to the provision of ongoing services including, but not limited to, monthly access charges, airtime usage, roaming, incoming and outgoing network usage by non-Vodafone customers and interconnect charges for incoming calls. We believe that it is both useful and necessary to report this measure for the following reasons:

· It is used for internal performance reporting;

· It is used in setting director and management remuneration; and

· It is useful in connection with discussion with the investment community.

Organic growth

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

Whilst this measure is not intended to be a substitute for reported growth, nor is it superior to reported growth, we believe that the measure provides useful and necessary information to investors and other interested parties for the following reasons:

· It provides additional information on underlying growth of the business without the effect of certain factors unrelated to its operating performance;

· It is used for internal performance analysis; and

· It facilitates comparability of underlying growth with other companies (although the term "organic" is not a defined term under IFRS and may not, therefore, be comparable with similarly titled measures reported by other companies).

We have not provided a comparative in respect of organic growth rates as the current rates describe the change between the beginning and end of the current period, with such changes being explained by the commentary in this news release. If comparatives were provided, significant sections of the commentary from the news release for prior periods would also need to be included, reducing the usefulness and transparency of this document.

Reconciliations of organic growth to reported growth are shown where used or in the tables overleaf.

 

 

 

 

 

Reported growth

Other activity (incl. M&A)

Foreign exchange

Organic growth*

Quarter ended 31 December

Q3 FY21

Q3 FY20

€m

€m

%

pps

pps

%

Service revenue

 

 

 

 

 

 

Germany

2,912 

2,883 

1.0 

1.0 

 

Mobile service revenue

1,279 

1,273 

0.5 

0.5 

 

Fixed service revenue

1,633 

1,610 

1.4 

1.4 

Italy

1,125 

1,220 

(7.8)

(7.8)

 

Mobile service revenue

818 

916 

(10.7)

(10.7)

 

Fixed service revenue

307 

304 

1.0 

0.1 

1.1 

UK

1,216 

1,282 

(5.1)

4.7 

(0.4)

 

Mobile service revenue

848 

924 

(8.2)

4.6 

(3.6)

 

Fixed service revenue

368 

358 

2.8 

5.1 

7.9 

Spain

957 

966 

(0.9)

(0.2)

(1.1)

Other Europe

1,215 

1,265 

(4.0)

1.5 

1.8 

(0.7)

 

Of which: Ireland

205 

209 

(1.9)

(0.3)

(2.2)

 

Of which: Portugal

247 

248 

(0.4)

0.3 

(0.1)

 

Of which: Greece

211 

219 

(3.7)

0.2 

(3.5)

Eliminations

(21)

(30)

 

 

 

 

Europe

7,404 

7,586 

(2.4)

0.2 

1.1 

(1.1)

Vodacom

1,056 

1,162 

(9.1)

12.4 

3.3 

 

Of which: South Africa

769 

834 

(7.8)

13.2 

5.4 

 

Of which: International operations

291 

330 

(11.8)

11.5 

(0.3)

Other Markets

806 

891 

(9.5)

21.8 

12.3 

 

Of which: Turkey

388 

481 

(19.3)

37.0 

17.7 

 

Of which: Egypt

371 

356 

4.2 

4.6 

8.8 

Other

115 

117 

(1.7)

(1.6)

(3.3)

Eliminations

(24)

(23)

 

 

 

 

Total service revenue

9,357 

9,733 

(3.9)

0.2 

4.1 

0.4 

Other revenue

1,844 

2,017 

(8.6)

4.8 

(3.8)

Revenue

11,201 

11,750 

(4.7)

0.2 

4.2 

(0.3)

 

 

 

 

 

 

 

 

Other growth metrics

 

 

 

 

 

 

Business - Service revenue

2,567 

2,647 

(3.0)

0.6 

3.1 

0.7 

Germany - Retail revenue

2,832 

2,791 

1.5 

1.5 

 

 

 

 

 

 

 

 

 

 

 

 

Reported growth

Other activity (incl. M&A)

Foreign exchange

Organic growth*

Quarter ended 30 September

Q2 FY21

Q2 FY20

€m

€m

%

pps

pps

%

Service revenue

 

 

 

 

 

 

Germany

2,883 

2,696 

6.9 

(7.0)

(0.1)

 

Mobile service revenue

1,277 

1,289 

(0.9)

(0.1)

(1.0)

 

Fixed service revenue

1,606 

1,407 

14.1 

(13.5)

0.6 

Italy

1,129 

1,226 

(7.9)

(0.1)

(8.0)

 

Mobile service revenue

823 

934 

(11.9)

(11.9)

 

Fixed service revenue

306 

292 

4.8 

4.8 

UK

1,208 

1,218 

(0.8)

0.3 

(0.5)

 

Mobile service revenue

854 

888 

(3.8)

0.2 

(3.6)

 

Fixed service revenue

354 

330 

7.3 

0.5 

7.8 

Spain

960 

978 

(1.8)

(1.8)

Other Europe

1,240 

1,264 

(1.9)

(1.0)

1.1 

(1.8)

 

Of which: Ireland

201 

215 

(6.5)

0.4 

(6.1)

 

Of which: Portugal

255 

254 

0.4 

(0.1)

0.3 

 

Of which: Greece

222 

237 

(6.3)

0.2 

(6.1)

Eliminations

(30)

(44)

 

 

 

 

Europe

7,390 

7,338 

0.7 

(2.8)

0.3 

(1.8)

Vodacom

999 

1,139 

(12.3)

15.5 

3.2 

 

Of which: South Africa

720 

811 

(11.2)

18.9 

7.7 

 

Of which: International operations

284 

329 

(13.7)

8.8 

(4.9)

Other Markets

839 

988 

(15.1)

10.1 

14.0 

9.0 

 

Of which: Turkey

425 

499 

(14.8)

28.7 

13.9 

 

Of which: Egypt

369 

356 

3.7 

1.2 

4.9 

Other

110 

117 

(6.0)

0.7 

(5.3)

Eliminations

(30)

(32)

 

 

 

 

Total service revenue

9,308 

9,550 

(2.5)

(1.3)

3.4 

(0.4)

Other revenue

1,613 

1,736 

(7.1)

0.3 

4.5 

(2.3)

Revenue

10,921 

11,286 

(3.2)

(1.1)

3.6 

(0.7)

 

 

 

 

 

 

 

 

Other growth metrics

 

 

 

 

 

 

Business - Service revenue

2,520 

2,597 

(3.0)

0.5 

2.3 

(0.2)

Germany - Retail revenue

2,802 

2,594 

8.0 

(7.4)

0.6 

 

 

 

 

 

 

 

 

 

Additional information

 

Quarter ended 31 December - Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Group and Regions

Group

 

Europe

 

 

 

Q3 FY21

Q3 FY20

 

Q3 FY21

Q3 FY20

 

 

 

 

€m 

€m 

 

€m 

€m 

 

 

 

Mobile customer revenue

5,364 

5,715 

 

3,844 

4,028 

 

 

 

Mobile incoming revenue

421 

437 

 

303 

310 

 

 

 

Other service revenue

442 

480 

 

291 

317 

 

 

 

Mobile service revenue

6,227 

6,632 

 

4,438 

4,655 

 

 

 

Fixed service revenue

3,130 

3,101 

 

2,966 

2,931 

 

 

 

Service revenue

9,357 

9,733 

 

7,404 

7,586 

 

 

 

Other revenue

1,844 

2,017 

 

1,251 

1,384 

 

 

 

Revenue

11,201 

11,750 

 

8,655 

8,970 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Companies

Germany 

 

Italy

 

UK

 

Q3 FY21

Q3 FY20

 

Q3 FY21

Q3 FY20

 

Q3 FY21

Q3 FY20

 

€m 

€m 

 

€m 

€m 

 

€m 

€m 

Mobile customer revenue

1,117 

1,112 

 

684 

776 

 

733 

790 

Mobile incoming revenue

57 

51 

 

73 

74 

 

56 

66 

Other service revenue

105 

110 

 

61 

66 

 

59 

68 

Mobile service revenue

1,279 

1,273 

 

818 

916 

 

848 

924 

Fixed service revenue

1,633 

1,610 

 

307 

304 

 

368 

358 

Service revenue

2,912 

2,883 

 

1,125 

1,220 

 

1,216 

1,282 

Other revenue

423 

416 

 

139 

209 

 

380 

443 

Revenue

3,335 

3,299 

 

1,264 

1,429 

 

1,596 

1,725 

 

 

 

 

 

 

 

 

 

 

Spain 

 

Vodacom

 

 

 

Q3 FY21

Q3 FY20

 

Q3 FY21

Q3 FY20

 

 

 

 

€m 

€m 

 

€m 

€m 

 

 

 

Mobile customer revenue

563 

561 

 

893 

977 

 

 

 

Mobile incoming revenue

37 

32 

 

36 

40 

 

 

 

Other service revenue

31 

38 

 

66 

75 

 

 

 

Mobile service revenue

631 

631 

 

995 

1,092 

 

 

 

Fixed service revenue

326 

335 

 

61 

70 

 

 

 

Service revenue

957 

966 

 

1,056 

1,162 

 

 

 

Other revenue

102 

112 

 

296 

290 

 

 

 

Revenue

1,059 

1,078 

 

1,352 

1,452