Vodafone Ireland revenue rises in third quarter

Revenue at Vodafone Ireland rose in the third quarter of the year, driven by an increase in mobile and broadband customers.

The company said service revenue for the three-month period was €207 million, a 2 per cent rise quarter on quarter.

The total fixed broadband customer base rose 5.3 per cent year on year, reaching 310,800, with mobile customers up 2.5 per cent, or almost 50,000 customers across its prepaid and contract plans.

“It’s been a positive quarter for Vodafone Ireland. Our performance demonstrates ongoing momentum with increased service revenue and growth in customer numbers, in our fixed broadband and mobile base. We are also encouraged by strong growth in our business division, with significant customer wins during the period,” chief executive Anne O’Leary said.

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The quarter also saw the announcement of a €620 million upgrade and expansion of its fibre-to-the-home (FTTH) network through its Siro joint venture with the ESB.

The wider Vodafone group said it was working to improve shareholder returns by tackling weaker parts of its business, as it reported a rise in quarterly revenue.

Solid quarter

Chief executive Nick Read said Vodafone had delivered a "solid quarter", with a 2.7 per cent rise in third-quarter group service revenue, including consistent growth in its biggest market, Germany.

Analysts, however, said investors were focused on consolidation opportunities in markets such as Italy and Spain, which have long been problematic for Vodafone.

Mr Read, who has called for regulators to allow more consolidation, said: “We are also committed to creating value for our shareholders through proactive portfolio actions and continuing to improve returns at pace.”

The group is focused on strengthening commercial momentum in Germany, he said, and accelerating its transformation in Spain, where revenue continued to decline.

Vodafone lost 53,000 contract mobile customers and 50,000 broadband customers in Spain, while it recorded its eighth consecutive quarter of decline in Italy.

Shares in Vodafone, which are trading at the same level as 12 months ago, were 2.8 per cent higher in early deals.

‘Satisfactory’ numbers

Analysts at Citi said they believed the numbers should be satisfactory for the market.

“The focus is firmly on developments in terms of in-market consolidation in UK, Italy and Spain and other initiatives, including the de-consolidation of [towers business] Vantage,” they said.

Reuters reported earlier this month that Vodafone and Iliad were in talks to combine their businesses in Italy, where operators continue to battle price pressure.

Vodafone said in November it expected to report adjusted core earnings of €15.2 billion-€15.4 billion and adjusted free cash flow of at least €5.3 billion.

Analysts expect adjusted core earnings of €15.26 billion and adjusted free cash flow of €5.34 billion, according to a company-compiled consensus.