REG - Vodafone Group Plc - Trading update for the quarter ended 31 Dec 2017 <Origin Href="QuoteRef">VOD.L</Origin> - Part 2
01/02/2018 07:06
- Part 2: For the preceding part double click ID:nRSA5604Da
(8.3) - 23.0 14.7
Of which: Egypt 232 404 (42.6) - 63.6 21.0
AMAP 2,373 2,593 (8.5) - 14.7 6.2
Other 243 280
Eliminations (55) (26)
Total service revenue 10,310 11,037 (6.6) 4.0 3.9 1.3
Other revenue 1,291 1,149
Revenue 11,601 12,186 (4.8) 3.5 4.0 2.7
Other growth metrics
Group - Enterprise service revenue 2,961 3,214 (7.9) 5.8 2.6 0.5
South Africa - Data revenue 375 330 13.6 - (1.4) 12.2
South Africa - Voice revenue 356 372 (4.3) - (1.2) (5.5)
India - Revenue 1,223 1,496 (18.2) - 0.8 (17.4)
India - Service revenue 1,216 1,495 (18.7) - 0.9 (17.8)
Excluding the impact of regulation and handset financing:
Europe - Service revenue 7,749 8,190 (5.4) 6.9 0.9 2.4
Europe - Mobile service revenue 5,583 6,065 (7.9) 8.5 0.9 1.5
UK - Service revenue 1,510 1,643 (8.1) 3.7 5.0 0.6
UK - Mobile service revenue 1,170 1,281 (8.7) 4.8 4.9 1.0
Excluding the impact of regulation:
Group - Enterprise service revenue 2,961 3,214 (7.9) 7.8 2.6 2.5
Germany - Service revenue 2,569 2,530 1.5 1.5 - 3.0
Germany - Mobile service revenue 1,554 1,545 0.6 2.2 - 2.8
Other Europe - Service revenue 1,189 1,589 (25.2) 29.0 (0.2) 3.6
Ireland - Service revenue 234 242 (3.3) 4.9 0.1 1.7 x
Portugal - Service revenue 250 237 5.5 0.1 (0.1) 5.5
Greece - Service revenue 219 211 3.8 (1.5) (0.1) 2.2
India - Service revenue 1,216 1,495 (18.7) - 0.9 (17.8)
OTHER INFORMATION
Definition of terms
Term Definition
ARPU Average revenue per user, defined as customer revenue and incoming revenue divided by average customers.
Converged customer A customer who receives both fixed and mobile services (also known as unified communications) on a single bill or who receives a discount across both bills.
Enterprise The Group's customer segment for businesses.
Fixed service revenue Service revenue relating to provision of fixed line ('fixed') and carrier services.
Incoming revenue Comprises revenue from termination rates for voice and messaging to Vodafone customers.
Internet of Things ('IoT') The network of physical objects embedded with electronics, software, sensors, and network connectivity, including built-in mobile SIM cards, that enables these objects to collect data and exchange communications with one another or a database.
Mobile customer revenue Represents revenue from mobile customers from bundles that include a specified number of minutes, messages or megabytes of data that can be used for no additional charge ('in-bundle') and revenues from minutes, messages or megabytes of data which are in excess of the amount included in customer bundles ('out-of-bundle'). Mobile in-bundle and out-of-bundle revenues, previously disclosed separately, are now combined to simplify the presentation of the Group's results.
Mobile service revenue Service revenue relating to the provision of mobile services.
Next generation networks ('NGN') Fibre or cable networks typically providing high-speed broadband over 30Mbps.
Organic growth An alternative performance measure which presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates. See "Alternative performance measures" on page 8 for further details.
Other revenue Other revenue includes revenue from connection fees and equipment sales.
Regulation Impact of industry specific law and regulations covering telecommunication services. The impact of regulation on service revenue in European markets comprises the effect of changes in European mobile termination rates and changes in out-of-bundle roaming revenues less the increase in visitor revenues.
Reported growth Reported growth is based on amounts reported in euros as determined under IFRS.
RGUs Revenue Generating Units describes number of fixed line services taken by subscribers.
Roaming Impact of European roaming, defined as the increase in visitor revenues less the increase in roaming costs and the decline in out-of-bundle roaming revenues.
Service revenue Service revenue comprises all revenue related to the provision of ongoing services including, but not limited to, monthly access charges, airtime usage, roaming, incoming and outgoing network usage by non-Vodafone customers and interconnect charges for incoming calls. See "Alternative performance measures" on page 8 for further details.
VGE Vodafone Global Enterprise (VGE), which serves the Group's biggest multi-national customers.
For definition of other terms please refer to pages 218 to 220 of the Group's
Annual Report for the year ended 31 March 2017.
Notes
1. References to Vodafone are to Vodafone Group Plc and references to Vodafone Group are to Vodafone Group Plc and its subsidiaries unless otherwise stated. Vodafone, the Vodafone Portrait, the Vodafone Speechmark, Vodacom, Vodafone One and M-Pesa, are trademarks of the Vodafone Group. The Vodafone Rhombus is a registered design of the Vodafone Group. Other product and company names mentioned herein may be the trademarks of their respective owners.
2. All growth rates reflect a comparison to the quarter ended 31 December 2016 unless otherwise stated.
3. References to "Q2" and "Q3" are to the quarters ended 30 September 2017 and 31 December 2017, respectively, unless otherwise stated. References to the "year", "financial year" or "2018 financial year" are to the financial year ending 31 March 2018 and references to the "last year" or "last financial year" are to the financial year ended 31 March 2017 unless otherwise stated.
4. All amounts marked with an "*" represent "organic growth", which presents performance on a comparable basis, both in terms of merger and acquisition activity as well as in terms of movements in foreign exchange rates.
5. Vodacom refers to the Group's interest in Vodacom Group Limited ('Vodacom') in South Africa as well as its subsidiaries, including its operations in the DRC, Lesotho, Mozambique and Tanzania.
6. The financial results for India have been derived from our consolidated financial results and this may differ from Vodafone India's financial statements prepared under Indian GAAP, Indian Accounting Standards or IFRS.
7. Quarterly historical information, including information for service revenue, mobile customers, mobile churn, mobile data usage, mobile ARPU and certain fixed line and convergence metrics, is provided in a spread sheet available at vodafone.com/investor.
8. This trading update contains references to our website. Information on our website is not incorporated into this update and should not be considered part of this update. We have included any website as an inactive textual reference only.
Forward-looking statements
This report contains "forward-looking statements" within the meaning of the US
Private Securities Litigation Reform Act of 1995 with respect to the Group's
financial condition, results of operations and businesses and certain of the
Group's plans and objectives.
In particular, such forward-looking statements include, but are not limited
to, statements with respect to: expectations regarding the Group's financial
condition or results of operations including the confirmation of the Group's
guidance for the 2018 financial year, expectations for the Group's future
performance generally; expectations regarding the operating environment and
market conditions and trends; intentions and expectations regarding the
development, launch and expansion of products, services and technologies;
growth in customers and usage; expectations regarding spectrum licence
acquisitions; expectations regarding adjusted EBITDA, capital additions, free
cash flow, and foreign exchange rate movements; and expectations regarding the
integration or performance of current and future investments, associates,
joint ventures, non-controlled interests and newly acquired businesses.
Forward-looking statements are sometimes, but not always, identified by their
use of a date in the future or such words as "sustain", "continue",
"stabilise", "ongoing", "will", "expects", or "targets" (including in their
negative form). By their nature, forward-looking statements are inherently
predictive, speculative and involve risk and uncertainty because they relate
to events and depend on circumstances that may or may not occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, the following:
changes in economic or political conditions in markets served by operations of
the Group and changes to the associated legal, regulatory and tax
environments; increased competition; the impact of investment in network
capacity and the deployment of new technologies, products and services; rapid
changes to existing products and services and the inability of new products
and services to perform in accordance with expectation; the ability of the
Group to integrate new technologies, products and services with existing
networks, technologies, products and services; the Group's ability to grow and
generate revenue; a lower than expected impact of new or existing products,
services or technologies on the Group's future revenue, cost structure and
capital expenditure outlays; the Group's ability to expand its spectrum
position or renew or obtain necessary licences and realise expected synergies
and associated benefits; the Group's ability to secure the timely delivery of
high-quality products from suppliers; loss of suppliers, disruption of supply
chains and greater than anticipated prices of new mobile handsets; changes in
the costs to the Group of, or the rates the Group may charge for, terminations
and roaming minutes; the impact of a failure or significant interruption to
the Group's telecommunications, networks, IT systems or data protection
systems; changes in foreign exchange rates, as well as changes in interest
rates; the Group's ability to realise benefits from entering into
acquisitions, partnerships or joint ventures and entering into service
franchising, brand licensing and platform sharing or other arrangements with
third parties; acquisitions and divestments of Group businesses and assets and
the pursuit of new, unexpected strategic opportunities; the Group's ability to
integrate acquired businesses or assets; the extent of any future write-downs
or impairment charges on the Group's assets, or restructuring charges incurred
as a result of an acquisition or disposition; the impact of legal or other
proceedings against the Group or other companies in the mobile
telecommunications industry; higher than expected costs or capital
expenditures; slower than expected customer growth and reduced customer
retention; changes in the spending patterns of new and existing customers; the
Group's ability to execute its strategy in fibre deployment, network
expansion, new product and service roll-outs, mobile data, Enterprise and
broadband and in emerging markets; changes in foreign exchange rates, as well
as changes in interest rates; changes in the regulatory framework in which the
Group operates; developments in the Group's financial condition, earnings and
distributable funds and other factors that the Board takes into account when
determining levels of dividends; the Group's ability to satisfy working
capital and other requirements; and/or changes in statutory tax rates or
profit mix.
Furthermore, a review of the reasons why actual results and developments may
differ materially from the expectations disclosed or implied within
forward-looking statements can be found under "Forward-looking statements" and
"Risk management" in the Group's Annual Report for the year ended 31 March
2017. The Annual Report can be found on the Group's website
(vodafone.com/investor). All subsequent written or oral forward-looking
statements attributable to the Company, to any member of the Group or to any
persons acting on their behalf are expressly qualified in their entirety by
the factors referred to above. No assurances can be given that the
forward-looking statements in this document will be realised. Subject to
compliance with applicable law and regulations, Vodafone does not intend to
update these forward-looking statements and does not undertake any obligation
to do so.
For further information:
Vodafone Group Plc
Investor Relations Media Relations
Telephone: +44 7919 990 230 www.vodafone.com/media/contact
Copyright © Vodafone Group 2018
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