Performance review
Organic
growth
All amounts marked with an '*' in
this document represent organic growth which presents performance
on a comparable basis, excluding the impact of foreign exchange
rates, mergers and acquisitions, the hyperinflation adjustment in
Turkey and other adjustments to improve the comparability of
results between periods. Organic growth figures are non-GAAP
measures. See non-GAAP measures on page 8 for more
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic performance summary
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Other
|
Vantage
|
Common
|
Elimi-
|
|
|
|
Germany
|
UK
|
Italy
|
Spain
|
Europe
|
Vodacom1
|
Markets1,2
|
Towers3
|
Functions
|
nations
|
Group
|
|
Q3
FY24
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
2,892
|
1,400
|
1,057
|
848
|
1,175
|
1,543
|
393
|
-
|
137
|
(62)
|
9,383
|
|
Other revenue
|
451
|
340
|
122
|
126
|
236
|
389
|
139
|
-
|
212
|
(26)
|
1,989
|
|
Total revenue (€m)
|
3,343
|
1,740
|
1,179
|
974
|
1,411
|
1,932
|
532
|
-
|
349
|
(88)
|
11,372
|
|
Organic service revenue growth %
4
|
0.3%
|
5.2%
|
(1.3)%
|
(1.1)%
|
3.6%
|
8.8%
|
90.4%
|
-
|
|
|
4.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
FY235
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
2,882
|
1,327
|
1,071
|
858
|
1,275
|
1,668
|
368
|
-
|
134
|
(63)
|
9,520
|
|
Other revenue
|
465
|
423
|
153
|
113
|
214
|
396
|
120
|
329
|
227
|
(322)
|
2,118
|
|
Total revenue (€m)
|
3,347
|
1,750
|
1,224
|
971
|
1,489
|
2,064
|
488
|
329
|
361
|
(385)
|
11,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY235
|
|
FY24
|
Organic service revenue growth %4
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
|
Q1
|
Q2
|
H1
|
Q3
|
Germany
|
(0.5)
|
(1.1)
|
(0.8)
|
(1.8)
|
(2.8)
|
(2.3)
|
(1.6)
|
|
(1.3)
|
1.1
|
(0.1)
|
0.3
|
UK
|
6.5
|
6.9
|
6.7
|
5.3
|
3.8
|
4.6
|
5.6
|
|
5.7
|
5.5
|
5.6
|
5.2
|
Italy
|
(2.3)
|
(3.4)
|
(2.8)
|
(3.3)
|
(2.7)
|
(3.0)
|
(2.9)
|
|
(1.6)
|
(1.0)
|
(1.3)
|
(1.3)
|
Spain
|
(3.0)
|
(6.0)
|
(4.5)
|
(8.7)
|
(3.7)
|
(6.2)
|
(5.4)
|
|
(3.0)
|
(2.7)
|
(2.8)
|
(1.1)
|
Other Europe
|
2.5
|
2.9
|
2.7
|
2.1
|
3.6
|
2.8
|
2.8
|
|
4.1
|
3.8
|
3.9
|
3.6
|
Vodacom1
|
6.9
|
8.3
|
7.6
|
8.0
|
7.0
|
7.5
|
7.5
|
|
9.0
|
9.0
|
9.0
|
8.8
|
Other
Markets1,2
|
32.3
|
39.7
|
36.0
|
48.8
|
54.9
|
51.7
|
43.5
|
|
74.1
|
85.0
|
79.3
|
90.4
|
Group
|
2.5
|
2.5
|
2.5
|
1.8
|
1.9
|
1.8
|
2.2
|
|
3.7
|
4.7
|
4.2
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Downloadable performance information
is available at: investors.vodafone.com/results
Notes:
1. Total revenue, service revenue,
other revenue and organic service revenue growth metrics for FY23
have been re-presented for the Other Markets and Vodacom segments
to reflect the move of Vodafone Egypt from the Other Markets
segment to the Vodacom segment. There is no impact on previously
reported Group metrics.
2. The Other Markets segment
comprises only Vodafone Turkey in FY24. The comparative period also
included Vodafone Ghana.
3. In March 2023, the Group sold its
controlling interest in Vantage Towers A.G. to a joint venture
entity co-controlled with KKR and GIP.
4. Organic service revenue growth is
a non-GAAP measure. See page 8 for more information.
5. The comparative period includes
the results of Vodafone Hungary and Vodafone Ghana which were
included in the Other Europe and Other Markets segments,
respectively, until their disposal. As previously reported,
Vodafone Hungary was sold in January 2023 and Vodafone Ghana was
sold in February 2023.
Germany ⫶ Commercial trends improving
Service revenue increased by 0.3%* (Q2: 1.1%*) as the
contribution from higher broadband ARPU was partly offset by the
impact of broadband customer losses and lower regulated rates for
terminating mobile calls. The lower growth in Q3 primarily reflects
non-recurring revenue received from mobile service providers in Q2
and lower IoT revenue in Q3.
Fixed service revenue
increased by 1.0%* (Q2:
1.4%*) as broadband ARPU growth was partially offset by the impact
of a lower broadband and TV customer base. During Q3, we
communicated price increases to a further one million customers. As
a result, we saw further fixed broadband disconnections and our
customer base declined by 76,000 (Q2: -133,000, Q1: -121,000). Our
converged customer base increased by 45,000 to 2.4 million. Gigabit
speeds are available to over 24 million households across our
hybrid fibre cable network and we have achieved strong quality and
reliability results in all four major independent network
tests.
Ahead of changes to German TV laws,
which take effect from July 2024 and end the practice of bulk TV
contracting in MDU apartment complexes, we have started migrating
end users to individual TV customer contracts at scale. We
currently have 8.5 million MDU TV households, generating around
€800 million in basic-TV revenue annually. Trials to date have
successfully migrated 35% to 65% of these households into
individual TV contracts. During Q3 our total TV customer base,
including premium TV customers, declined by 136,000.
Mobile service revenue
decreased by 0.5%* (Q2:
+0.7%*) reflecting a lower total customer base and a reduction in
mobile termination rates, partially offset by higher roaming and
visitor revenue. Lower quarter-on-quarter
growth reflects non-recurring revenue
received from service providers in Q2 and lower Business IoT
revenue year-on-year in Q3. We added 95,000 new contract customers
in the quarter, supported by our ongoing optimisation of sales
channels and an improved performance of Vodafone's own brands. We
have achieved strong results in all four major independent mobile
network tests from 'Connect', 'CHIP', 'Computer BILD' and
'OpenSignal'.
Vodafone Business service revenue
decreased by 1.9%* (Q2: +1.0%*) in Q3, reflecting
a strong prior year comparative performance in
public sector and cloud services, and lower
IoT revenue. We
added 1.8 million IoT connections in the quarter, driven by strong
demand from the automotive sector. In November 2023, we expanded
our digital services proposition for SoHo businesses, with
Microsoft 365 and new security solutions now available to
customers.
UK, Italy, Spain and Other
Europe ⫶ Growing in 7 out of 9 markets
UK
Service revenue increased by 5.2%*
(Q2: 5.5%*) as continued strong growth in the Consumer and Business
segments was partly offset by lower fixed wholesale
revenue.
In mobile, our contract customer
base increased by 18,000 supported by good seasonal trading.
Consumer contract retention also improved by 0.8 percentage points
year-on-year. Our digital sub-brand, 'VOXI'
continued to grow, with 26,000 customers added during the
quarter.
In fixed, we added 39,000 broadband
customers in Q3, and we now have 1.3 million broadband customers.
Through our partnerships with CityFibre and Openreach we can now
reach over 14.5 million households with full fibre broadband, more
than any other provider in the UK.
Vodafone Business service revenue
increased by 5.8%* (Q2: 3.2%*) during the quarter, supported by
strong growth in IoT and higher project revenue. This follows our
announcement in August 2023, that we will be providing connectivity
for Britain's smart meter network through our partnership with Data
Communications Company.
In June 2023, we announced a binding
agreement to combine our UK business with Three UK to create a
sustainable, and competitive third scaled network operator in the
UK. Following the merger, which we expect to close around the end
of calendar 2024, subject to regulatory and shareholder approvals,
Vodafone will own 51% of the combined business and CK Hutchison
49%. This combination will provide customers with greater choice
and more value, drive greater competition, and enable increased
investment with a £11 billion plan to create one of Europe's most
advanced standalone 5G networks. Full details of the transaction
can be found here:
investors.vodafone.com/merger-of-vodafone-uk-and-three-uk
Italy
Service revenue declined by 1.3%*
(Q2: -1.0%*) as a result of continued price pressure in the mobile
value segment, partially offset by strong Business demand for fixed
line connectivity and digital services.
In mobile, our Consumer prepaid
active customer base declined quarter-on-quarter, in part
reflecting repricing actions across a proportion of our customer
base. Our digital sub-brand 'ho.' continued to grow, with 36,000
net new customers, and now has 3.2 million customers. In October
2023, we agreed an extension to our wholesale MVNO agreement with
PostePay until the end of 2028.
Our fixed line customer base
decreased by 24,000, however we also added 24,000 fixed-wireless
customers which are reported within our mobile customer base. Our
next generation network broadband services are now available to
23.3 million households, including 9.1 million through our own
network and our partnership with Open Fiber. This is complemented
by our fixed-wireless access services which now cover 4.3 million
households via 5G FWA and 1.3 million households via 4G
FWA.
Vodafone Business continued to grow
strongly at 7.5%* (Q2: 7.5%*) driven by good demand for both our
fixed connectivity and digital services, supported in part by the
business voucher programme. This initiative, which concluded in
December 2023, has been funded via the EU Recovery and Resilience
Facility ('ERF') and subsidises high-speed broadband connectivity.
In October 2023, we announced that Vodafone will provide hybrid 5G
Mobile Private Network infrastructure to SNAM, one of Europe's
largest natural gas transportation companies, and in November 2023
we were awarded the public tenders for local area networks and
mobile services for public administration.
On 18 December 2023, we confirmed
that we are exploring options for in-market consolidation in Italy
with several parties. There can be no certainty that any
transaction will ultimately be agreed.
Spain
On 31 October 2023, we announced
that we had entered into binding agreements with Zegona
Communications plc in relation to the sale of 100% of Vodafone
Spain. On completion, which is expected to take place during the
first half of calendar 2024, we will receive €4.1 billion in cash
and up to €0.9 billion in the form of Redeemable Preference Shares,
which redeem no later than six years after closing. The enterprise
value of €5.0 billion is equivalent to a multiple of 5.3x Adjusted
EBITDAaL and 12.7x Operating Free Cash Flow for the 12-month period
ended 31 March 2023. Full details of the transaction can be found
here: investors.vodafone.com/sale-of-vodafone-spain.
Vodafone Spain will be reported as
discontinued operations in the consolidated financial statements
for the year ending 31 March 2024.
In Spain, service revenue declined due to
continued price competition in the Consumer value segment, a lower
customer base and a reduction in mobile termination rates. This was
partially offset by the positive contribution from inflation-linked
price increases implemented in January 2023 and higher Business
revenue during the quarter. Our mobile contract customer base
increased by 29,000 and our broadband customer base decreased by
24,000.
Other Europe
Service revenue grew by 3.6%* (Q2:
3.8%*), with all six markets growing during the quarter, supported
by our price actions in most markets.
In Portugal, both the Consumer and
Business segments continued to grow strongly, supported by
inflation-linked contractual price increases implemented in March
2023, as well as good demand for fixed services. We added 47,000
mobile contract customers and 31,000 fixed broadband customers
during the quarter. In Ireland, service revenue increased, driven
by mobile customer base growth. In Greece, service revenue grew,
reflecting good growth in our Business fixed segment, supported by
public sector demand. During the quarter, we added 41,000 mobile
contract customers.
Vodafone Business service revenue
increased by 7.8%* (Q2: 5.2%*) during the quarter, with growth in
both connectivity and digital services, including IoT, Cloud and
SD-WAN solutions. Growth was supported by a higher customer base,
price increases in the SoHo and SME customer segments across all
markets, and public sector contract wins in Greece and
Romania.
In September 2022, we announced that
we had entered into an agreement to buy Portugal's fourth largest
converged operator, Nowo Communications, from Llorca JVCO Limited,
the owner of Masmovil Ibercom S.A. The transaction is conditional
on regulatory approval. We submitted proposed remedies which were
rejected in January 2024. We are reviewing the competition
authority's comments and exploring further options to address the
authority's concerns.
Vodacom ⫶ Maintained strong Group SR momentum
Note: Organic growth rates include Egypt in all
periods
Vodacom's service revenue grew by
8.8%* (Q2: 9.0%*), with growth in South Africa, Egypt, and
Vodacom's international markets.
In South Africa, service revenue
growth was supported by the Consumer mobile contract segment, which
benefited from a price increase in the first quarter, and good
fixed line growth in Consumer and Business. The lower growth in Q3
was due to a strong prior year comparative, reflecting an
acceleration in customer data usage during widespread power
outages. We added 58,000 contract customers in the quarter, and now
have a total base of 6.8 million. We added 2.9 million mobile
prepaid customers in the quarter, supported by our Big Data led
customer value management capabilities which offer personalised
bundles to customers. Financial services revenue grew by 3.9%*,
driven by good demand for our insurance services. Our 'VodaPay'
super-app continued to gain traction with 4.8 million registered
users.
In Egypt, service revenue continued
to grow strongly in the high inflationary environment, reflecting
good customer base growth, increased data usage and good demand for
our financial services product, 'Vodafone Cash', which now has 7.5
million active users. During the quarter, we added 123,000 mobile
contract customers and 607,000 mobile prepaid customers, and we now
have 47.8 million customers.
In Vodacom's international markets,
service revenue growth was supported by a higher customer base, and
strong M-Pesa and data revenue growth. The reacceleration in
quarterly trends was largely driven by the DRC, which is
benefitting from accelerated network investment. M-Pesa revenue
continued to grow strongly and now represents 27.4% of service
revenue. Our mobile customer base now stands at 53.7 million and
62.3% of active customers use our data services.
Turkey
Service revenue growth in Turkey was
driven by continued customer base management and ongoing repricing
actions to reflect the high inflationary environment. Despite a
material devaluation in the currency, service revenue also grew in
euro terms during the quarter. We maintained our good commercial
momentum, adding 352,000 mobile contract customers during the
quarter, including migrations from prepaid customers.
Hyperinflationary accounting in Turkey
During the quarter, service revenue
in Turkey increased by 90.4%* (Q2: 85.0%*) due to ongoing repricing
actions to reflect inflation. Turkey was designated as a
hyperinflationary economy on 1 April 2022 in line with IAS 29
'Financial Reporting in Hyperinflationary Economies'. Organic
growth metrics exclude the impact of the hyperinflation adjustment
in Turkey in the quarter.
Group service revenue growth
excluding Turkey was 2.5%* (Q2: 2.8%*).
Additional resources
Non-GAAP measures
In the discussion of the Group's
reported operating results, non-GAAP 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 a measure
defined under GAAP. Such measures should not be viewed in isolation
or as an alternative to the equivalent GAAP measure. The non-GAAP
measures discussed in this document are listed below.
Non-GAAP measure
|
Defined on page
|
Closest equivalent GAAP measure
|
Reconciled on page
|
Performance metrics
|
|
|
|
Organic revenue growth
|
Page 8
|
Revenue
|
Pages 9 and 10
|
Organic service revenue
growth
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic mobile service revenue
growth
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic fixed service revenue
growth
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic Group service revenue growth
excluding Turkey
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic Vodafone Business service
revenue growth
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic financial services revenue
growth in South Africa
|
Page 8
|
Service revenue
|
Page 9
|
Definition and use of organic growth
measures
All amounts marked with an '*' in
this document represent organic growth which presents performance
on a comparable basis, excluding the impact of foreign exchange
rates, mergers and acquisitions, the hyperinflation adjustments in
Turkey and other adjustments to improve the comparability of
results between periods.
Organic growth is calculated for
revenue metrics, as follows:
-
Revenue
-
Service revenue;
-
Mobile service revenue;
-
Fixed service revenue;
-
Group service revenue excluding Turkey;
-
Vodafone Business service revenue; and
-
Financial services revenue in South
Africa
Whilst organic growth 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 GAAP 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
document. If comparatives were provided, significant sections of
the commentary for prior periods would also need to be included,
reducing the usefulness and transparency of this
document.
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth*
|
Quarter ended 31 December 2023
|
Q3 FY24
|
Q3 FY23
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
Service revenue
|
|
|
|
|
|
|
Germany
|
2,892
|
2,882
|
0.3
|
-
|
-
|
0.3
|
|
Mobile service revenue
|
1,272
|
1,279
|
(0.5)
|
-
|
-
|
(0.5)
|
|
Fixed service revenue
|
1,620
|
1,603
|
1.1
|
(0.1)
|
-
|
1.0
|
UK
|
1,400
|
1,327
|
5.5
|
-
|
(0.3)
|
5.2
|
|
Mobile service revenue
|
1,034
|
977
|
5.8
|
-
|
(0.4)
|
5.4
|
|
Fixed service revenue
|
366
|
350
|
4.6
|
-
|
-
|
4.6
|
Italy
|
1,057
|
1,071
|
(1.3)
|
-
|
-
|
(1.3)
|
|
Mobile service revenue
|
714
|
750
|
(4.8)
|
-
|
-
|
(4.8)
|
|
Fixed service revenue
|
343
|
321
|
6.9
|
(0.1)
|
-
|
6.8
|
Spain
|
848
|
858
|
(1.2)
|
0.1
|
-
|
(1.1)
|
Other Europe1
|
1,175
|
1,275
|
(7.8)
|
12.4
|
(1.0)
|
3.6
|
Vodacom2
|
1,543
|
1,668
|
(7.5)
|
-
|
16.3
|
8.8
|
Other
Markets1,2,3
|
393
|
368
|
6.8
|
19.5
|
64.1
|
90.4
|
Common Functions
|
137
|
134
|
|
|
|
|
Eliminations
|
(62)
|
(63)
|
|
|
|
|
Total service revenue
|
9,383
|
9,520
|
(1.4)
|
2.2
|
3.9
|
4.7
|
Other revenue
|
1,989
|
2,118
|
|
|
|
|
Revenue
|
11,372
|
11,638
|
(2.3)
|
2.5
|
4.0
|
4.2
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
Group service revenue excluding
Turkey
|
8,996
|
9,193
|
(2.1)
|
2.1
|
2.5
|
2.5
|
Turkey - Service revenue
|
393
|
334
|
17.7
|
(10.7)
|
83.4
|
90.4
|
Vodafone Business - Service
revenue
|
2,624
|
2,602
|
0.8
|
1.9
|
2.3
|
5.0
|
Germany - Vodafone Business service
revenue
|
612
|
629
|
(2.7)
|
0.8
|
-
|
(1.9)
|
UK - Vodafone Business service
revenue
|
540
|
508
|
6.3
|
-
|
(0.5)
|
5.8
|
Italy - Vodafone Business service
revenue
|
389
|
363
|
7.2
|
0.3
|
-
|
7.5
|
Spain - Vodafone Business service
revenue
|
292
|
285
|
2.5
|
(0.3)
|
-
|
2.2
|
Other Europe - Vodafone Business
service revenue
|
375
|
380
|
(1.3)
|
9.7
|
(0.6)
|
7.8
|
South Africa - Financial services
revenue
|
40
|
45
|
(11.1)
|
-
|
15.0
|
3.9
|
Notes:
1. Comparatives include the results
of Vodafone Hungary and Vodafone Ghana which were included in the
Other Europe and Other Markets segments, respectively, until their
disposal. As previously reported, Vodafone Hungary was sold in
January 2023 and Vodafone Ghana was sold in February
2023.
2. From 1 April 2023, the Group
revised its segmental reporting by moving Vodafone Egypt from the
Other Markets segment to the Vodacom segment. This is the effective
date on which the Group's reporting structure changed to reflect
the transfer of Vodafone Egypt to the Vodacom Group. All
comparatives for these two segments have been re-presented on the
new basis of segmental reporting. There is no impact on previously
reported Group metrics.
3. The Other Markets segment
comprises only Vodafone Turkey in FY24.
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth*
|
Quarter ended 30 September 2023
|
Q2 FY24
|
Q2 FY23
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
Service revenue
|
|
|
|
|
|
|
Germany
|
2,903
|
2,873
|
1.0
|
0.1
|
-
|
1.1
|
|
Mobile service revenue
|
1,290
|
1,282
|
0.6
|
0.1
|
-
|
0.7
|
|
Fixed service revenue
|
1,613
|
1,591
|
1.4
|
-
|
-
|
1.4
|
UK
|
1,421
|
1,352
|
5.1
|
-
|
0.4
|
5.5
|
|
Mobile service revenue
|
1,057
|
1,000
|
5.7
|
-
|
0.4
|
6.1
|
|
Fixed service revenue
|
364
|
352
|
3.4
|
-
|
0.5
|
3.9
|
Italy
|
1,063
|
1,073
|
(0.9)
|
(0.1)
|
-
|
(1.0)
|
|
Mobile service revenue
|
729
|
762
|
(4.3)
|
(0.1)
|
-
|
(4.4)
|
|
Fixed service revenue
|
334
|
311
|
7.4
|
(0.1)
|
-
|
7.3
|
Spain
|
860
|
884
|
(2.7)
|
-
|
-
|
(2.7)
|
Other Europe1
|
1,205
|
1,298
|
(7.2)
|
12.1
|
(1.1)
|
3.8
|
Vodacom2
|
1,498
|
1,758
|
(14.8)
|
-
|
23.8
|
9.0
|
Other
Markets1,2,3
|
495
|
407
|
21.6
|
(11.3)
|
74.7
|
85.0
|
Common Functions
|
151
|
140
|
|
|
|
|
Eliminations
|
(88)
|
(92)
|
|
|
|
|
Total service revenue
|
9,508
|
9,693
|
(1.9)
|
1.0
|
5.6
|
4.7
|
Other revenue
|
1,689
|
1,959
|
|
|
|
|
Revenue
|
11,197
|
11,652
|
(3.9)
|
1.2
|
5.5
|
2.8
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
Group service revenue excluding
Turkey
|
9,023
|
9,344
|
(3.4)
|
2.1
|
4.1
|
2.8
|
Turkey - Service revenue
|
495
|
360
|
37.5
|
(41.8)
|
89.3
|
85.0
|
Vodafone Business - Service
revenue
|
2,589
|
2,591
|
(0.1)
|
1.0
|
3.4
|
4.3
|
Germany - Vodafone Business service
revenue
|
609
|
600
|
1.5
|
(0.5)
|
-
|
1.0
|
UK - Vodafone Business service
revenue
|
531
|
517
|
2.7
|
-
|
0.5
|
3.2
|
Italy - Vodafone Business service
revenue
|
379
|
352
|
7.7
|
(0.2)
|
-
|
7.5
|
Spain - Vodafone Business service
revenue
|
276
|
280
|
(1.4)
|
0.2
|
-
|
(1.2)
|
Other Europe - Vodafone Business
service revenue
|
365
|
376
|
(2.9)
|
9.2
|
(1.1)
|
5.2
|
Notes:
1. Comparatives include the results
of Vodafone Hungary and Vodafone Ghana which were included in the
Other Europe and Other Markets segments, respectively, until their
disposal. As previously reported, Vodafone Hungary was sold in
January 2023 and Vodafone Ghana was sold in February
2023.
2. From 1 April 2023, the Group
revised its segmental reporting by moving Vodafone Egypt from the
Other Markets segment to the Vodacom segment. This is the effective
date on which the Group's reporting structure changed to reflect
the transfer of Vodafone Egypt to the Vodacom Group. All
comparatives for these two segments have been re-presented on the
new basis of segmental reporting. There is no impact on previously
reported Group metrics.
3. The Other Markets segment
comprises only Vodafone Turkey in FY24.
Definitions
Key terms are defined
below.
Term
|
Definition
|
Adjusted EBITDAaL
|
Adjusted EBITDAaL, which is a
non-GAAP measure, is operating profit after depreciation on
lease-related right of use assets and interest on lease liabilities
but excluding depreciation, amortisation and gains/losses on
disposal of owned assets and excluding share of results of equity
accounted associates and joint ventures, impairment
losses/reversals, restructuring costs arising from discrete
restructuring plans, other income and expense and significant items
that are not considered by management to be reflective of the
underlying performance of the Group.
|
Adjusted free cash flow ('Adjusted
FCF')
|
Adjusted free cash flow, which is a
non-GAAP measure, is Free cash flow before licences and spectrum,
restructuring costs arising from discrete restructuring plans,
integration capital additions and working capital related items,
M&A and Vantage Towers growth capital expenditure.
|
Africa
|
Comprises the Vodacom Group and
business in Egypt.
|
ARPU
|
Average revenue per user, defined as
customer revenue and incoming revenue divided by average
customers.
|
Common Functions
|
Comprises central teams and business
functions.
|
Converged customer
|
A customer who receives fixed and
mobile services (also known as unified communications) on a single
bill or who receives a discount across both bills.
|
Eliminations
|
Refers to the removal of
intercompany transactions to derive the consolidated financial
statements.
|
Europe
|
Comprises the Group's European
businesses and the UK.
|
Financial services
revenue
|
Financial services revenue includes
fees generated from the provision of advanced airtime, overdraft,
financing and lending facilities, as well as merchant payments and
the sale of insurance products (e.g. device insurance, life
insurance and funeral cover).
|
Fixed service revenue
|
Service revenue (see below) relating
to the provision of fixed line and carrier services.
|
FWA
|
Fixed Wireless Access.
|
GAAP
|
Generally Accepted Accounting
Principles.
|
IFRS
|
International Financial Reporting
Standards.
|
Internet of Things
('IoT')
|
The network of physical objects
embedded with electronics, software, sensors, and network
connectivity, including built-in mobile SIM cards, that enables
these objects to collect data and exchange communications with one
another or a database.
|
MDU
|
Multi-Dwelling Unit.
|
Mobile service revenue
|
Service revenue (see below) relating
to the provision of mobile services.
|
Other Europe
|
Other Europe comprises Portugal,
Ireland, Greece, Romania, Czech Republic and Albania. The prior
period comparative results include Vodafone Hungary which was
disposed of in January 2023.
|
Other Markets
|
Other Markets comprises
Turkey. From 1 April 2023, the Group revised its segmental
reporting by moving Vodafone Egypt from the Other Markets segment
to the Vodacom segment. This is the effective date on which the
Group's reporting structure changed to reflect the transfer of
Vodafone Egypt to the Vodacom Group. The prior period comparative
results include Vodafone Ghana which was disposed of in February
2023.
|
Other revenue
|
Other revenue principally includes
equipment revenue, interest income, income from partner market
arrangements and lease revenue, including in respect of the lease
out of passive tower infrastructure.
|
Reported growth
|
Reported growth is based on amounts
reported in euros and determined under IFRS.
|
Revenue
|
The total of Service revenue
(defined below) and Other revenue (defined above).
|
Roaming
|
Roaming: allows customers to make
calls, send and receive texts and data on our and other operators'
mobile networks, usually while travelling abroad.
|
Service revenue
|
Service revenue is all revenue
related to the provision of ongoing services to the Group's
Consumer and Business customers, together with roaming revenue,
revenue from incoming and outgoing network usage by non-Vodafone
customers and interconnect charges for incoming calls.
|
SD-WAN
|
Software-Defined Wide Area
Network.
|
SME
|
Small and Medium-sized
Enterprises.
|
SoHo
|
Small office / Home
office
|
Vodafone Business
|
Vodafone Business supports
organisations in a digital world. With Vodafone's expertise in
connectivity, our leading IoT platform and our global scale, we
deliver the results that organisations need to progress and thrive.
We support businesses of all sizes and sectors.
|
Notes
1. References to Vodafone are to Vodafone Group Plc and
references to Vodafone Group are to Vodafone Group Plc and its
subsidiaries unless otherwise stated. Vodafone, the Vodafone Speech
Mark Devices, Vodacom and Together we can are trade marks owned by
Vodafone. Other product and company names mentioned herein may be
the trade marks of their respective owners.
2. All
growth rates reflect a comparison to the quarter ended 31 December
2022 unless otherwise stated.
3. References to "Q1", "Q2", "Q3" and "Q4" are to the three
months ended 30 June, 30 September, 31 December and 31 March,
respectively. References to "H1" and "H2" are to the six month
periods ended 30 September and 31 March, respectively.
References to the "last year", "last financial year" or "FY23" are
to the financial year ended 31 March 2023. References to "FY24" are
to the financial year ending 31 March 2024.
4. Vodacom refers to the Group's interest in Vodacom Group
Limited ('Vodacom') as well as its
operations, including subsidiaries in South Africa, Egypt, DRC,
Tanzania, Mozambique and Lesotho.
5. This document contains references to our and our affiliates'
websites. Information on any website is not incorporated into this
update and should not be considered part of this update.
Forward-looking statements and other
matters
This document contains
'forward-looking statements' within the meaning of the US Private
Securities Litigation Reform Act of 1995 with respect to the
Group's financial condition, results of operations and businesses
and certain of the Group's plans and objectives. In particular,
such forward-looking statements include, but are not limited to,
statements with respect to: expectations regarding the Group's
financial condition or results of operations and the guidance for
Adjusted EBITDAaL and Adjusted free cash flow for the financial
year ending 31 March 2024; the announced agreement to combine
Vodafone UK and Three UK; the announced agreement to dispose of
Vodafone Spain; changes to German TV laws and the migration of
users to individual TV customer contracts; expectations for the
Group's future performance generally; the transaction to purchase
Nowo Communicatons; the timing for the provision of hybrid 5G
Mobile Private Network infrastructure to SNAM; the Group's
strategic partnership with Microsoft; the digital transformation of
the Group's business customers; the Group's partnership with Data
Communications Company in the UK; expectations regarding the
operating environment and market conditions and trends, including
customer usage, competitive position and macroeconomic pressures,
price trends and opportunities in specific geographic markets;
intentions and expectations regarding the development, launch and
expansion of products, services and technologies, either introduced
by Vodafone or by Vodafone in conjunction with third parties or by
third parties independently; expectations regarding the integration
or performance of current and future investments, associates, joint
ventures, non-controlled interests and newly acquired businesses;
certain of the Group's plans and objectives, including the Group's
strategy.
Forward-looking statements are
sometimes but not always identified by their use of a date in the
future or such words as 'will', 'may', 'expects', 'plans',
'further', or 'ongoing'. By their nature, forward-looking
statements are inherently predictive, speculative and involve risk
and uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to the
following: general economic and political conditions in the
jurisdictions in which the Group operates and changes to the
associated legal, regulatory and tax environments; increased
competition; levels of investment in network capacity and the
Group's ability to deploy view technologies, products and services;
evolving cyber threats to the Group's services and confidential
data; the Group's ability to embed responses to climate-related
risks into business strategy and operations; rapid changes to
existing products and services and the inability of new products
and services to perform in accordance with expectations; the
ability of the Group to integrate new technologies, products and
services with existing networks, technologies, products and
services; the Group's ability to generate and grow revenue; slower
than expected impact of new or existing products, services or
technologies on the Group's future revenue, cost structure and
capital expenditure outlays; slower than expected customer growth,
reduced customer retention, reductions or changes in customer
spending and increased pricing pressure; the Group's ability to
extend and expand its spectrum resources, to support ongoing growth
in customer demand for mobile data services; the Group's ability to
secure the timely delivery of high-quality products from suppliers;
loss of suppliers, disruption of supply chains and greater than
anticipated prices of new mobile handsets; changes in the costs to
the Group of, or the rates the Group may charge for, terminations
and roaming minutes; the impact of a failure or significant
interruption to the Group's telecommunications, networks, IT
systems or data protection systems; the Group's ability to realise
expected benefits from acquisitions, partnerships, joint ventures,
associates, franchises, brand licences, platform sharing or other
arrangements with third parties, including the signed agreement to
combine Vodafone's UK business with Three UK and the Group's
strategic partnership with Microsoft; acquisitions and divestments
of Group businesses and assets and the pursuit of new, unexpected
strategic opportunities; the Group's ability to integrate acquired
business or assets; the extent of any future write-downs or
impairment charges on the Group's assets, or restructuring charges
incurred as a result of an acquisition or disposition; developments
in the Group's financial condition, earnings and distributable
funds and other factors that the Board takes into account in
determining the level of dividends; the Group's ability to satisfy
working capital requirements; changes in foreign exchange rates;
changes in the regulatory framework in which the Group operates;
the impact of legal or other proceedings against the Group or other
companies in the communications industry; and changes in statutory
tax rates and profit mix, including the disposal of Vodafone
Spain.
A review of the reasons why actual
results and developments may differ materially from the
expectations disclosed or implied within forward-looking statements
can be found in the summary of our principal risks in the Group's
Annual Report for the year ended 31 March 2023. The Annual Report
can be found on the Vodafone Group's website (vodafone.com/ar2023). All subsequent written or oral
forward-looking statements attributable to Vodafone or any member
of the Vodafone Group or any persons acting on their behalf are
expressly qualified in their entirety by the factors referred to
above. No assurances can be given that the forward-looking
statements in this document will be realised. Subject to compliance
with applicable law and regulations, Vodafone does not intend to
update these forward-looking statements and does not undertake any
obligation to do so.
Copyright © Vodafone Group
2024
-End-