Thursday, February 6, 2014
Europe Hits Vodafone Hard
Vodafone said its group revenue declined 4.3% year-on-year on an organic basis in the quarter ending December 31 to 10.98 billion British pounds (17.94 billion US dollars). Service revenue fell 9.6% on an organic basis in Europe, but rose 5.5% in Africa, the Middle East and Asia Pacific.
Vittorio Colao, CEO, said: “Our emerging market businesses are growing strongly, supported by consistent execution and accelerating demand for data. In Europe, conditions are still difficult, and we continue to mitigate these challenges through on-going improvements to our operating model and cost efficiency. In addition, the shift to 4G is gaining momentum and we have seen improving mobile customer net addition trends. We are therefore optimistic that our revenue performance will begin to improve as regulatory headwinds ease and customer appetite for video and content services increases (see graphic)."
Capital spending rose 20% year-on-year to 1.8 billion pounds in the quarter. Colao added: “During the quarter we have made further progress in executing our long-term strategy. Project Spring, our £7 billion organic investment programme, will accelerate our plans to establish stronger network and service differentiation for our customers, with the first elements of the programme already initiated.” source: Vodafone statement
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