Group organic service revenue grew 1.7%*; Europe 0.7%*, AMAP 3.9%*
European growth continues as ARPU stabilises: Italy 3.0%*, Germany 1.8%*, Spain 0.8%*, and UK -3.2%*
AMAP slowed due to competition in India: Vodacom 4.0%*, India -1.9%*, Turkey 15.0%*
Ongoing 4G adoption drives data growth: 4G customers up 7.6 million to 64.6 million and data volumes +53%
Strong fixed momentum led by Italy and Spain: 417,000 total broadband net adds of which 262,000 are on-net
Enterprise outperformance continues with growth of 3.3%* driven by fixed market share gains and AMAP mobile
Full year guidance confirmed: FCF of at least €4.0 billion, lower end of organic EBITDA growth range of 3-6%
Full news release (.pdf)
|Quarter ended 31 December||Growth|
|Africa, Middle East and Asia Pacific ('AMAP')||4,484||4,592||(2.4)|
|Alternative performance measures2|
|Group service revenue1||12,300||12,705||(3.2)||1.7|
Vittorio Colao, Group Chief Executive, commented:
“Our overall performance in Europe and Africa remained strong during the third quarter, reflecting good execution. In Europe, service revenue growth continued, led by Italy, Germany and Spain. Mobile contract ARPU continued to stabilise, reflecting the successful adoption of our ‘more-for-more’ propositions, while we remain Europe’s fastest growing broadband company, illustrating our effective convergence strategy. In the UK we have made good progress in improving customer service but face heightened price competition in Enterprise.
In AMAP, our strong organic performance in South Africa and Turkey was partially offset by India, where the sector is affected by free services from the new entrant. We anticipate intense competitive pressure in India in the fourth quarter and are taking a series of commercial actions, including the extension of 4G services to 17 leading circles. As announced earlier this week, we have also entered discussions with the Aditya Birla Group about an all-share merger of Vodafone India and Idea.
We are reconfirming our guidance for the year and are confident that we will sustain our commercial momentum.”
* All amounts in this document 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. See “Alternative performance measures” on page 7 for further details and reconciliations to the respective closest equivalent GAAP measure.
1. With effect from 1 April 2016, the Group’s presentation currency was changed from pounds sterling to the euro to better align with the geographic split of the Group’s operations. The service revenue and revenue amounts presented for the quarter ended 31 December 2015 have been restated into euros. Group revenue and service revenue include the regional results of Europe, AMAP, Other (which includes the results of partner market activities) and eliminations.
2. Alternative performance measures are non-GAAP measures that are presented to provide readers with additional financial information that is regularly reviewed by management and should not be viewed in isolation or as an alternative to the equivalent GAAP measure. See “Alternative performance measures” on page 7 for reconciliations to the closest respective equivalent GAAP measure and “Definition of terms” on page 10 for further details.