Vodafone revenue per user down 6% in year

VODAFONE IRELAND said the average monthly revenue per user (ARPU) from its mobile customers fell 6 per cent during the year to the end of March.

This brought the average per customer to €39.10 per month, down from €41.60 a year earlier, although the way the company calculates ARPU changed last year.

On average, Irish customers spoke for 246 minutes and sent 164 text messages per month during the last year, up 5.6 per cent and 18.4 per cent respectively on 2008.

This compares to Vodafone’s European average of 146 voice minutes and 79 text messages.

Vodafone’s Irish customer numbers fell from 2.32 million to 2.26 million in the year to March 31st with the company reporting 83,188 fixed-line voice and broadband customer numbers, a rise from 62,500 at the end of March 2008.

John Kent, chief financial officer, Vodafone Ireland, said in a statement the company had reduced prices by “approximately 18 per cent” for Irish customers over the last year.

He attributed the reduction in customer numbers to the return home of migrant workers and the impact of the recession.

Since November last year, Vodafone said it had executed network-sharing arrangements across Germany, Ireland, Spain and the UK.

The company said “both Greece and Ireland were impacted by deteriorating market environments, which worsened in the fourth quarter and substantial price reductions in prepaid tariffs”.

Yesterday its parent Vodafone Group said it would accelerate cost-cutting plans after forecasting profits would be flat at best in the coming year and announcing a £5.9 billion (€6.6 billion) impairment charge.

Last November, it said it would cut £1 billion of costs to maintain profit and boost cashflow when saying conditions would be challenging.

For the year to the end of March 2009, it posted revenues up 15.6 per cent at £41 billion, with earnings before interest, tax, depreciation and amortisation up 10 per cent to £14.5 billion, both in line with forecasts.

Free cashflow was £5.7 billion and adjusted operating profit was £11.8 billion before impairment charges.

Vodafone said it would accelerate its cost-cutting programme, with over 65 per cent to be achieved in the 2009-10 financial year.

For the year just ended, Vodafone said more mature European and central European markets had seen voice and messaging revenue decline, while roaming charges also fell due to lower business and leisure travel.

In Europe, organic service revenue declined by 1.7 per cent.

In contrast to Europe, Vodafone said results in Africa and India remained robust driven by continued but lower GDP growth and increasing penetration.

For the year ahead, Vodafone said operating conditions would be challenging in Europe and central Europe.

It expected adjusted operating profit in the range of £11 billion to £11.8 billion, and free cashflow in the range of £6 billion to £6.5 billion. – (Additional reporting Reuters)