Spain disappoints, but emerging markets boost Vodafone

Paul Rasmussen — Wed, 23 Jul 2008 13:06:45 -0400

Announcing that a company the size of Vodafone would feel the effects of the global downturn sent its share price down by 14 per cent, the largest fall in Vodafone history. The company reacted to this fall by announcing a £1 billion buyback. However, this warning by the outgoing CEO, Arun Sarin, that the outlook was less than rosy might have disguised some hidden gems within Vodafone's arsenal of revenue generating resources.

Sure, the sharp decline in the Spanish market hit the company badly as did the lacklustre results from the U.K.--but both are very mature markets and consumers in both countries are reining back on all expenditures. The revenue growth high spots were the emerging markets, namely Eastern Europe, the Middle East, Africa, Asia and Pacific which was up 30.9 per cent, supported by growth from India of more than 50 per cent. Overall, Vodafone reported a 19.1 per cent revenue growth to £9.8 billion for the three months to the end of June 2008-and added 8.5 million subscribers.

Of more interest was the 50 per cent rise in revenues from its data services over the past quarter, after the number of its customers using the web from mobile devices more than doubled. Data revenue for the quarter stood at £664 million globally, compared with £441 million for the same period last year. The CEO of Vodafone Germany, Friedrich Joussen, was also upbeat claiming that, although revenue fell slightly in the second quarter, due mainly to regulatory causes, "it won't be long until we see growth again."

There are also growing indications that the company is seriously considering an offer for freenet's DSL business. "We are taking a very close look at it," said Joussen, adding that a purchase couldn't be ruled out. Vodafone Germany doesn't necessarily need acquisitions as its organic growth is strong, Joussen said.

For more on this story:
- go to Forbes, NMA and The Guardian

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Vodafone Spain gains in saturated market

Paul Rasmussen — Fri, 18 Jul 2008 13:01:58 -0400

With penetration reaching over 120 per cent, Vodafone Spain just managed to outperform the market leader, Telefonica, during Q1/08 by recruiting (on a proportionate basis) more users.

Telefonica finished the quarter with just over 23 million customers, having managed an annual growth rate of 5.5 per cent, and recorded a very slight improvement in market share to finish Q1 on 46.5 per cent.

Vodafone Spain finished the quarter with a market share of 29.9 per cent. In real terms, its customer base stood at 14.79 million, up 790,000 year on year. While this is lower than both the previous year's figure of 1.25 million net additions and Telefonica's 1.19 million, in proportionate terms Vodafone grew by 5.6 per cent, the highest growth rate on the market excluding start-up Xfera.

France Telecom's Amena, with a 22.4 per cent share of the market, was the slowest growing by some margin with an annual increase of just 0.2 per cent. Having lost 370,000 customers in Q2/07, Amena rebounded with quarterly net additions of 230,000 and 170,000 in Q3 and Q4, but Q1/08 saw the loss of 7,000, leaving the annual gain at a paltry 26,000.

Most observers believe it is too late for the 3G operator Xfera to penetrate the Spanish market given its lowly 1.1 per cent share with 560,000 subscribers.

For more on this story:
- go to Cellular News

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Spanish Market

Spain disappoints, but emerging markets boost Vodafone

Vodafone Spain gains in saturated market