Vodafone Group: strong momentum led by Italy and Spain

Strong fixed momentum for Vodafone Group led by Italy and Spain. Full year guidance confirmed.

vodafoneVodafone Group Highlights

Group organic service revenue grew 1.7%; Europe 0.7%, AMAP 3.9%

European growth continues as ARPU stabilises: Italy 3.0%, Germany 1.8%, Spain 0.8%, and UK -3.2%

AMAP slowed due to competition in India: Vodacom 4.0%, India -1.9%, Turkey 15.0%

Ongoing 4G adoption drives data growth: 4G customers up 7.6 million to 64.6 million and data volumes +53%

Strong fixed momentum led by Italy and Spain: 417,000 total broadband net adds of which 262,000 are on-net

Enterprise outperformance continues with growth of 3.3%* driven by fixed market share gains and AMAP mobile

Full year guidance confirmed: FCF of at least €4.0 billion, lower end of organic EBITDA growth range of 3-6%

Our overall performance in Europe and Africa remained strong during the third quarter, reflecting good execution. In Europe, service revenue growth continued, led by Italy, Germany and Spain. Mobile contract ARPU continued to stabilise, reflecting the successful adoption of our ‘more-for-more’ propositions, while we remain Europe’s fastest growing broadband company, illustrating our effective convergence strategy. In the UK we have made good progress in improving customer service but face heightened price competition in Enterprise. In AMAP, our strong organic performance in South Africa and Turkey was partially offset by India, where the sector is affected by free services from the new entrant. We anticipate intense competitive pressure in India in the fourth quarter and are taking a series of commercial actions, including the extension of 4G services to 17 leading circles. As announced earlier this week, we have also entered discussions with the Aditya Birla Group about an all-share merger of Vodafone India and Idea. We are reconfirming our guidance for the year and are confident that we will sustain our commercial momentum” commented Vittorio Colao, Vodafone Group Chief Executive.