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July 25, 2018
Vodafone blames accountants and currency for revenue slump

Vodafone has pointed the finger at new accounting rules and fluctuating FX as the reason for a 4.9% decline in revenues over the last three months.

Total revenues across the group stood at €10.9 billion, a year-on-year decrease of 4.9% for the quarter, though the team has stated competition has impacted the fortunes of the business. Italy and Spain are the new headaches for the business, though India took a significant sting with revenues down 22%; the merger with Idea cannot come soon enough.

“The Group’s organic service revenue growth slowed during the first quarter, in line with expectations,” said CEO Vittorio Colao. “The majority of our operations performed well, with ongoing momentum in Germany, further underlying recovery in the UK and continued good growth in AMAP, all of which helped to offset increased competition in Italy and Spain.”

At least in India the team might be able to get back onto the front foot before too long. The merger with Idea Cellular has been given conditional approval from the Department of Telecoms, with the hope this deal might be able to close before the end of August. India has been a bit quieter in recent months, though with the combined business offloading assets to build a war chest to tackle Jio, it is a market which could hit the headlines once again.

Average Vodafone Customer Consumes 3.3gb / Month In Cellular Data far in excess of Ericsson’s Mobility Report for June 2018. These trends make complete sense as Europe starts to rebound and LTE becomes ubiquitious. We know from the experience of moving from dial up modem internet to the first high speed internet connections to the current ultra high speed fibre connections of 1 gpbs; the faster the connectivity path the greater the content consumption.

Vodafone blames accountants and currency for revenue slump