Friday, January 25, 2019
Stagnant Vodafone Sees Reasons for Optimism
Vodafone reported a decline of 0.8% in group service revenue on an organic basis for the quarter ending December 31st. However, it said, excluding the impact of UK handset financing, organic service revenue would have risen slightly. "Growth in the majority of markets was offset by declines in Italy and in Spain, which were impacted by increased competition," Vodafone said.
Vodafone Business service revenues declined by 0.5% in the quarter, despite a 3.5% growth in fixed-line revenues "due to ongoing market share gains and strong growth in cloud services." But the mobile revenues in the business division were hit by a weaker performance at Vodacom and increased pricing pressure in Europe, particularly in the SoHo segment, as well as a slowdown in the automotive part of its IoT business. However, Vodafone said IoT connectivity revenues continued to grow strongly, with 27% growth in SIM connections to 80.9 million.
Vodafone also reported that its African payments platform M-Pesa (including Safaricom) maintained good momentum, with active customers growing 14% to 37 million, and transaction volumes up 27% in the quarter. Source: Vodafone statement
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