Vodafone clips its profits forecast

VODAFONE IRELAND'S monthly average revenue per user (Arpu) dropped 5.7 per cent in the first half of the year to €42.50 from €45.10 a year ago.

The telecoms operator reported a 0.6 per cent increase in its mobile subscriber base to 2.23 million at the end of September compared with the same period 12 months ago. However, its mobile subscriber numbers have declined slightly over the last two quarters and were 0.7 per cent lower in September than in June. Voice usage on the Irish network increased over the period, with total voice minutes used rising 6.8 per cent to 1.62 billion when compared with September 2007.

On average, Irish customers spoke for 248 minutes and sent 143 messages in the second quarter compared to a European average of 147 voice minutes and 74 text messages.

Vodafone Ireland said subscribers to its mobile broadband service exceeded 94,000 by the end of September. This is up over 100 per cent over the last 12 months.

The company said its fixed-line voice and broadband products had 76,621 customers at the end of September, bringing its total telecoms customer base to 2.31 million. This includes the operations of its wholly-owned subsidiary Perlico and Vodafone's own fixed-line service.

Parent Vodafone Group cut its full-year revenue outlook and will reduce costs by £1 billion, but it increased its forecast for free cash flow after reporting first half results slightly ahead of expectations. The world's largest mobile phone company by revenues, which also maintained its forecast for adjusted operating profit, now expects full-year group revenues to be between £38.8 billion sterling (€47.3 billion) and £39.7 billion.

It is the second time Vodafone has cut the forecast after saying in July it expected full-year revenues at around the bottom of its previously forecast range of £39.9 billion to £40.7 billion. - ( Additional reporting Reuters)