Tuesday, May 14, 2019
Competitive Headwinds Hit Vodafone
Vodafone reported a 0.6% year-on-year fall in organic service revenue (excluding handset financing and settlements in Germany) for the quarter ending March 31, as it struggled with "increased competition in Spain and Italy and headwinds in South Africa." Group revenues for the financial year ending March 31 were 43.7 billion euros.
Group CEO Nick Read said Vodafone intends "to build Europe’s largest 5G network, reaching over 50 cities by the end of [March 2020] following commercial launches during the summer. In addition to potential new revenue streams, 5G’s improved spectral and energy efficiency supports up to a 10x reduction in the cost per gigabyte, which will allow the group to limit future growth in network operating costs despite strong expected traffic growth."
Vodafone said it now has 37 million customers using its M-Pesa financial services suite, with over 10 billion euros of payments processed over the platform each month across seven African markets. In the year to March 31, M-Pesa grew revenues by 20.7% to 750 million euros, which represented 12% of the group's "emerging consumer" service revenues. "M-Pesa, our African payments platform, has moved beyond its origins as a money transfer service, and now provides enterprise payments, financial services and merchant payment services for mobile commerce," Nick Read noted. Source: Vodafone statement
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