- In the three months to 31 December, revenues fell by 3.6%, latest figures show
- Over the period, 316,000 new broadband customers signed up to Vodafone
- Shares slip 5 per cent to 212p following the lackluster update
Telecoms giant Vodafone closed out 2017 with a whimper as it suffered a 3.6 per cent drop in revenues in the three months to 31 December, with total sales falling to £10.3billion.
Vodafone’s latest results were hampered by the strengthening of the euro, the creation of a new joint venture in the Netherlands and slipping sales across both its European and Africa, Middle East & Asia Pacific divisions.
Stripping out the impact of the euro and the costly joint venture however, Laith Khalaf, a senior analyst at Hargreaves Lansdown, noted Vodafone ‘actually posted modest revenue growth’.
Sales: Vodafone’s quarterly revenues fell by 3.6% its latest results show
Vodafone put the results down to the ‘negative impact from the deconsolidation of Vodafone Netherlands’ after the creation of its joint venture VodafoneZiggo, as well as foreign exchange rate fluctuations.
Growth in its European business slowed due to the ‘drag’ from heavy regulation and handset financing in the UK.
Vodafone said its quarterly trading performance was in line with forecasts and expects full-year underlying earnings to jump by 10 per cent to between £12.9billion to £13billion. Despite the group’s optimism, it’s share price is down 4.23 per cent to 215.10p.
Mr Colao, said Vodafone enjoyed ‘good commercial momentum’ over the quarter as it signed up its 100 millionth 4G customer.
In the third quarter, 316,000 customers across Europe joined Vodafone’s broadband network. In the UK, the group added 6,000 customers to its mobile division in the quarter.
UK service revenues, which cover anything from outgoing and incoming call charges to airtime usage and roaming costs, fell by 4.8 per cent. In India, service revenues fell by 23.1 per cent over the period.
Laith Khalaf said: ‘The new mobile roaming regulations and a shift towards SIM-only contracts have proved a drag on Vodafone’s performance in Europe.
‘Growth in developing countries looks promising though, where many of these markets have leap-frogged fixed-line phone networks and moved straight on to mobile as a primary means of communication.’
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