Form 6-K

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Report of Foreign Private Issuer

 

Pursuant to Rules 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

Dated January 26, 2005

 

VODAFONE GROUP

PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

 

 

VODAFONE HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN, ENGLAND
(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F ý   Form 40-F o

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o     No ý

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82

 

 


 

        This Report on Form 6-K contains a news release issued by Vodafone Group Plc on January 26, 2005, entitled “VODAFONE REACHES 150 MILLION CUSTOMERS - STRONGEST QUARTER SINCE DECEMBER 2000”.

 


 

26 January 2005

 

VODAFONE REACHES 150 MILLION CUSTOMERS – STRONGEST QUARTER SINCE DECEMBER 2000

 

Vodafone Group Plc (“Vodafone”) announces today key performance indicators for the quarter ended 31 December 2004.  The main highlights are:

 

                  Strongest quarter of net additions since December 2000 with over 5.4 million organic net additions, bringing the total proportionate customer base to over 151.8 million

 

                  Highest quarter ever for new Vodafone live! customers of 3.9 million, bringing global Vodafone live! controlled customer base to 28.3 million, including 12.9 million in Japan

 

                  ARPU trends continued to develop in line with expectations; non-voice services increased to 16.7% of controlled service revenue

 

                  Successful launch of Vodafone live! with 3G across 13 markets

 

                  In total, over 400,000 Vodafone Mobile Connect customers, including over 170,000 3G enabled customers

 

                  2.4 billion shares repurchased in the financial year to date at a cost of £3.2 billion

 

Arun Sarin, Chief Executive of Vodafone, commented:

 

“I am very pleased to announce another impressive quarter for customer and revenue growth. We have seen consistently strong performances across Europe and in the US, whilst we continue to focus on our turnaround programme in Japan.

 

In the last quarter we saw record new Vodafone live! customer additions in our controlled base of 3.9 million, which contributed to a total of over 28 million customers across our controlled networks.  This highlights our success in attracting and migrating customers to new services.  Our customer proposition is enhanced by Vodafone live! with 3G and we have seen positive early indications following our launch in November.

 

Overall these KPIs are in line with our expectations and we maintain our guidance for the full year to March 2005.”

 



 

United Kingdom

 

Vodafone UK added 641,000 net customers in the quarter, taking the total base to 15.2 million customers, an increase of over 9% since last year.  Churn has continued its improving trend due to ongoing focus on customer retention and loyalty initiatives.  Blended annual ARPU reduced to £314 from £318 for the year to December compared to the year to September 2004, principally due to the impact of the reduction in incoming call termination rates of approximately 30% effective from 1 September 2004.

 

The growth in average customers more than offset the fall in ARPU and led to a 3% growth in service revenue for the quarter when compared to the same quarter last year. Excluding the effect of the reduction in termination rates, service revenue grew by around 7% in the quarter.  Non-voice services as a percentage of service revenue for the year to December 2004 were 17.9%, up from 15.5% for the year to December 2003, with Vodafone live! customers now exceeding 3 million.

 

Net acquisition and retention costs as a percentage of service revenue in the quarter were stable compared to the same period last year, but higher than the quarter to September 2004 due to seasonal promotional activity.

 

 

Germany

 

Net customer additions of 843,000 demonstrated continued strong growth in Germany and resulted in a closing base of 26.9 million customers, with churn remaining stable compared to the previous quarter.

 

Blended annual ARPU for the year to December was €303 compared to €305 for the year to September 2004, reflecting the impact of lower spending new customers.  Bundled minute plans continued to be successful and have a positive impact on ARPU.

 

Strong customer growth was the primary driver behind a 6% increase in service revenue for the quarter compared to the same quarter last year. Non-voice services as a percentage of service revenue for the year to December 2004 were 17.7%, up from 17.2% for the year to December 2003, benefiting from the increase in Vodafone live! customers to 4.3 million.

 

Net acquisition and retention costs as a percentage of service revenue in the quarter were lower than the same period last year, but higher than the quarter to September 2004 due to seasonal promotional activity.

 

 

Italy

 

Proportionate net customer additions were 359,000 in the quarter, leading to a total proportionate customer base of over 17 million. Blended annual ARPU remained stable at €360 for the year to December compared to the year to September 2004.  Churn also remained stable quarter on quarter.

 

2


 

Service revenue for the quarter increased 8% compared to the same period last year.  Non-voice services as a percentage of service revenue increased to 14.4% for the year to December 2004 from 12.7% for the year to December 2003, benefiting from a series of promotions throughout the year and an increase in total Vodafone live! customers in Italy to 2.3 million.

 

Net acquisition and retention costs as a percentage of service revenue in the quarter were higher than the same period last year, reflecting the increase in competitive activity in the Italian market.  However, these costs remain at very low levels when compared to the rest of the Group.

 

Japan

 

The closing proportionate base in Japan was 14.8 million, reflecting net customer additions of 36,000 in the quarter.  The Group’s effective ownership in Vodafone Japan reduced from 98.2% to 97.7% following the completion of the merger of Vodafone K.K. and Vodafone Holdings K.K. on 1 October 2004.  Churn levels remained stable quarter on quarter, benefiting from the continued investment in customer retention activities and the introduction of new handsets.

 

Blended annual ARPU fell to ¥75,133 for the year to December 2004 from ¥76,590 for the year to September 2004.  The fall in ARPU reflects the competitive environment, increasing market penetration and growth in prepaid customers.

 

Service revenue for the quarter decreased by 4% compared to the same quarter last year, due to the fall in ARPU.  Non-voice services as a percentage of service revenue of 21.4% for the year to December 2004 were slightly lower than for the year to December 2003 due to the impact of competition.

 

Net acquisition and retention costs as a percentage of service revenue in the period were stable compared to the same quarter last year.

 

The Group will continue to focus on executing a successful turnaround programme in Japan throughout 2005 and into 2006.

 

Spain

 

Vodafone Spain added 457,000 net customers in the quarter, bringing the total customer base to 10.9 million customers, an increase of over 12% on last year.  Churn has improved both quarter on quarter and year on year.

 

Blended annual ARPU continued to grow strongly, increasing to €408 from €400 for the year to December compared to the year to September 2004, benefiting from the focus on high value customers.

 

The strong growth in ARPU and customers generated service revenue growth of over 20% year on year for the fourth successive quarter.  Non-voice services as a percentage of service revenue increased to 13.1% for the year to December 2004 from 11.0% for the year to December 2003, with Vodafone live! customers increasing by over 700,000 in the quarter to reach a total of 2.2 million.

 

3


 

Net acquisition and retention costs as a percentage of service revenue in the period were higher than the same quarter last year, reflecting the increased investment in acquiring and retaining higher value customers during the current financial year.

 

 

 

- ends -

 

 

For further information:

 

Vodafone Group

Simon Lewis, Group Corporate Affairs Director

Tel: +44 (0) 1635 673310

 

Investor Relations

Media Relations

Charles Butterworth

Bobby Leach

Darren Jones

Ben Padovan

Sarah Moriarty

 

Tel: +44 (0) 1635 673310

Tel: +44 (0) 1635 673310

 

 

Tavistock Communications

Lulu Bridges

John West

Tel: +44 (0) 20 7920 3150

 

Notes to editors

 

(1)              The guidance for the year to March 2005 is contained in Vodafone’s Interim Results Announcement for the six months ended 30 September 2004 in which there is a discussion of forward-looking statements and the risks associated with them.

 

(2)              Service revenue growth is calculated in local currency and before the elimination of intercompany revenue.

 

(3)              Vodafone, Vodafone live! and Vodafone Mobile Connect are trademarks of the Vodafone Group.

 

4


 

VODAFONE GROUP PLC – MOBILE TELECOMMUNICATIONS BUSINESSES

PROPORTIONATE CUSTOMERS – 1 OCTOBER 2004 TO 31 DECEMBER 2004

COUNTRY

 

PERCENTAGE
OWNERSHIP(1)

 

AT 30 SEPTEMBER 2004

 

NET ADDITIONS

 

OTHER MOVEMENTS(2)

 

AT 31 DECEMBER 2004

 

PREPAID(3)

 

 

 

(%)

 

(000s)

 

(000s)

 

(000s)

 

(000s)

 

(%)

 

UK & IRELAND

 

 

 

 

 

 

 

 

 

 

 

 

 

UK

 

100.0

 

14,600

 

641

 

— 

 

15,241

 

61%

 

Ireland

 

100.0

 

1,890

 

39

 

— 

 

1,929

 

72%

 

TOTAL

 

 

 

16,490

 

680

 

— 

 

17,170

 

62%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NORTHERN EUROPE

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

100.0

 

26,092

 

843

 

— 

 

26,935

 

52%

 

Hungary(5)

 

92.8

 

1,498

 

112

 

— 

 

1,610

 

78%

 

Netherlands

 

99.9

 

3,537

 

130

 

— 

 

3,667

 

56%

 

Sweden

 

100.0

 

1,530

 

44

 

— 

 

1,574

 

39%

 

Others

 

 

 

9,993

 

388

 

— 

 

10,381

 

48%

 

TOTAL

 

 

 

42,650

 

1,517

 

— 

 

44,167

 

51%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOUTHERN EUROPE

 

 

 

 

 

 

 

 

 

 

 

 

 

Italy

 

76.8

 

16,654

 

359

 

— 

 

17,013

 

92%

 

Albania

 

99.7

 

587

 

32

 

— 

 

619

 

97%

 

Greece

 

99.4

 

3,704

 

118

 

— 

 

3,822

 

66%

 

Malta

 

100.0

 

165

 

 

— 

 

165

 

90%

 

Portugal

 

100.0

 

3,488

 

149

 

— 

 

3,637

 

74%

 

Spain

 

100.0

 

10,452

 

457

 

— 

 

10,909

 

54%

 

Others

 

 

 

878

 

109

 

— 

 

987

 

66%

 

TOTAL

 

 

 

35,928

 

1,224

 

— 

 

37,152

 

77%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMERICAS

 

 

 

 

 

 

 

 

 

 

 

 

 

United States(2) & (4)

 

44.4

 

18,686

 

753

 

 

19,441

 

6%

 

TOTAL

 

 

 

18,686

 

753

 

 

19,441

 

6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASIA PACIFIC

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan(2)

 

97.7

 

14,851

 

36

 

(78) 

 

14,809

 

11%

 

Australia(2)

 

100.0

 

2,649

 

156

 

(228) 

 

2,577

 

64%

 

New Zealand

 

100.0

 

1,757

 

74

 

— 

 

1,831

 

79%

 

Others

 

 

 

6,421

 

330

 

— 

 

6,751

 

71%

 

TOTAL

 

 

 

25,678

 

596

 

(306) 

 

25,968

 

67%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MIDDLE EAST AND AFRICA

 

 

 

 

 

 

 

 

 

 

 

 

 

Egypt(5)

 

67.0

 

2,142

 

249

 

— 

 

2,391

 

83%

 

Others

 

 

 

5,119

 

400

 

— 

 

5,519

 

89%

 

TOTAL

 

 

 

7,261

 

649

 

— 

 

7,910

 

88%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP TOTAL

 

 

 

146,693

 

5,419

 

(304) 

 

151,808

 

60%

 

 

(1)          All ownership percentages are stated as at 31 December 2004 and exclude options, warrants or other rights or obligations of the Group to increase or decrease ownership in any venture. Ownership interests have been rounded to the nearest tenth of one percent.

(2)          Other movements for the quarter to 31 December 2004 includes 228,000 MVNO customers in Vodafone Australia which had previously been included in the Group’s proportionate customer base but have been excluded in the quarter to 31 December 2004 in accordance with Group policy, a stake decrease of 0.5% in Vodafone Japan from 98.2% to 97.7% following the merger of Vodafone K.K. and Vodafone Holdings K.K. on 1 October 2004 and the acquisition of a local network operator by Verizon Wireless.

(3)          Prepaid customer percentages are calculated on a venture basis. At 31 December 2004, there were 416.4 million total venture customers.

(4)          The Group’s proportionate customer base has been adjusted for Verizon Wireless’s proportionate ownership of its customer base across all its network interests of approximately 98.6% at 31 December 2004. In the absence of acquired interests, this proportionate ownership will vary slightly from quarter to quarter depending on the underlying mix of net additions across each of these networks.

(5)          Subsequent to 31 December 2004, the Group increased its stake in Vodafone Hungary to 100.0% and committed to reduce its stake in Vodafone Egypt to 50.1%.

 

5


 

VODAFONE GROUP PLC – MOBILE TELECOMMUNICATIONS BUSINESSES

VENTURE VODAFONE LIVE! CUSTOMERS

COUNTRY

 

AT
30 SEPTEMBER 2004 (000s)

 

NEW CUSTOMERS (000s)

 

AT
31 DECEMBER 2004 (000s)

 

Germany

 

3,570

 

777

 

4,347

 

Italy

 

1,643

 

659

 

2,302

 

Japan *

 

N/A

 

N/A

 

12,937

 

Spain

 

1,496

 

704

 

2,200

 

UK

 

2,403

 

710

 

3,113

 

Other

 

2,369

 

1,023

 

3,392

 

Controlled Total

 

11,481

 

3,873

 

28,291

 

 

*                 With effect from 31 December 2004, Vodafone live! venture customers in Japan have been included in the above table as the service in Japan has become aligned with the Vodafone live! experience in other countries. Prior to this date, registered Vodafone live! venture customers in Japan, of which there were 13.0 million at 30 September 2004, were excluded from the table and disclosed separately.

 

The table above only includes Vodafone live! venture customers in our controlled operations. There were an additional 2.8 million registered Vodafone live! venture customers in our non-controlled associated undertakings at 31 December 2004 (September 2004: 1.8 million).

 

 

VODAFONE GROUP PLC – MOBILE TELECOMMUNICATIONS BUSINESSES

CONTROLLED ACTIVE CUSTOMER INFORMATION AS AT 31 DECEMBER 2004

 

 

CONTROLLED ACTIVE CUSTOMERS AS AT

 

COUNTRY

 

DECEMBER
2003

 

MARCH
2004

 

JUNE
2004

 

SEPTEMBER
2004

 

DECEMBER
2004

 

Germany

 

92

%

93

%

93

%

92

%

92

%

Italy

 

93

%

93

%

92

%

92

%

92

%

Japan

 

98

%

97

%

97

%

97

%

97

%

Spain

 

95

%

96

%

97

%

92

%

92

%

UK

 

91

%

91

%

91

%

91

%

90

%

Controlled Total

 

93

%

94

%

93

%

93

%

92

%

 

6


 

VODAFONE GROUP PLC – MOBILE TELECOMMUNICATIONS BUSINESSES

MONTHLY REGISTERED TOTAL ARPU FOR THE 15 MONTHS TO 31 DECEMBER 2004

Country

 

 

 

Oct

 

Nov

 

Dec

 

Jan

 

Feb

 

Mar

 

Apr

 

May

 

Jun

 

Jul

 

Aug

 

Sep

 

Oct

 

Nov

 

Dec

 

Germany

 

EUR

 

27.0

 

24.9

 

25.4

 

24.5

 

23.2

 

26.2

 

25.0

 

25.5

 

25.8

 

26.4

 

25.9

 

25.7

 

25.5

 

24.6

 

24.5

 

Italy

 

EUR

 

31.1

 

29.0

 

30.4

 

29.6

 

27.8

 

30.6

 

29.9

 

30.1

 

30.8

 

31.0

 

29.6

 

30.2

 

30.3

 

28.9

 

31.2

 

Japan

 

JPY

 

6,760

 

6,460

 

6,690

 

6,360

 

6,100

 

6,560

 

6,300

 

6,150

 

6,150

 

6,470

 

6,380

 

6,210

 

6,280

 

5,970

 

6,200

 

Spain

 

EUR

 

32.6

 

29.5

 

31.8

 

30.6

 

29.3

 

33.0

 

32.9

 

33.9

 

35.4

 

38.5

 

36.4

 

35.2

 

34.8

 

32.6

 

35.1

 

UK(1)

 

GBP

 

26.8

 

26.0

 

26.2

 

27.0

 

24.1

 

28.3

 

25.3

 

27.8

 

26.8

 

27.3

 

26.8

 

25.8

 

25.6

 

24.6

 

24.4

 

 

ARPU INFORMATION FOR THE 12 MONTH PERIOD TO 31 DECEMBER 2004

 

 

ARPU

 

COUNTRY

 

CURRENCY

 

REGISTERED PREPAID

 

REGISTERED CONTRACT

 

REGISTERED TOTAL

 

UK & IRELAND

 

 

 

 

 

 

 

 

 

UK(1)

 

GBP

 

127

 

574

 

314

 

Ireland

 

EUR

 

370

 

1,186

 

602

 

 

 

 

 

 

 

 

 

 

 

NORTHERN EUROPE

 

 

 

 

 

 

 

 

 

Germany

 

EUR

 

121

 

482

 

303

 

Hungary

 

HUF

 

40,588

 

150,671

 

62,540

 

Netherlands

 

EUR

 

152

 

860

 

459

 

Sweden

 

SEK

 

799

 

5,625

 

3,938

 

 

 

 

 

 

 

 

 

 

 

SOUTHERN EUROPE

 

 

 

 

 

 

 

 

 

Italy

 

EUR

 

306

 

927

 

360

 

Albania

 

ABL

 

20,507

 

294,980

 

28,967

 

Greece

 

EUR

 

211

 

781

 

398

 

Malta

 

MTL

 

94

 

908

 

168

 

Portugal

 

EUR

 

192

 

687

 

336

 

Spain

 

EUR

 

179

 

687

 

408

 

 

 

 

 

 

 

 

 

 

 

ASIA PACIFIC

 

 

 

 

 

 

 

 

 

Japan

 

JPY

 

30,734

 

79,506

 

75,133

 

Australia

 

AUD

 

334

 

949

 

607

 

New Zealand

 

NZD

 

343

 

1,800

 

651

 

 

 

 

 

 

 

 

 

 

 

MIDDLE EAST AND AFRICA

 

 

 

 

 

 

 

 

 

Egypt

 

EGP

 

806

 

3,078

 

1,237

 

 

ARPU – HISTORY

 

 

 

 

 

REGISTERED TOTAL ARPU FOR THE TWELVE MONTH PERIOD TO

 

COUNTRY

 

CURRENCY

 

DECEMBER
2003

 

MARCH
2004

 

JUNE
2004

 

SEPTEMBER
2004

 

DECEMBER
2004

 

Germany

 

EUR

 

311

 

310

 

309

 

305

 

303

 

Italy

 

EUR

 

359

 

361

 

362

 

360

 

360

 

Japan

 

JPY

 

82,917

 

80,695

 

78,365

 

76,590

 

75,133

 

Spain

 

EUR

 

369

 

377

 

389

 

400

 

408

 

UK(1)

 

GBP

 

303

 

309

 

314

 

318

 

314

 

 

(1)          During the period from 1 October 2002 to 31 March 2003, Vodafone UK operated under interim commercial terms with one of its service providers. Final terms were agreed in April 2003. Recognising revenues on a consistent basis during the interim period to the bases before and after this period would result in additional service revenues of £74 million. For consistency and comparability purposes, this revenue has been included in the calculation of UK ARPU but has been excluded from Group turnover in accordance with UK GAAP. The impact of the inclusion of these amounts has been to increase ARPU for the 12 months to December 2003 from £300 to £303.

 

7


 

VODAFONE GROUP PLC – MOBILE TELECOMMUNICATIONS BUSINESSES

NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES

 

 

12 MONTHS TO 31 DECEMBER 2004

 

COUNTRY

 

MESSAGING

 

DATA

 

TOTAL

 

Germany

 

15.1

%

2.6

%

17.7

%

Italy

 

12.9

%

1.5

%

14.4

%

Japan

 

7.2

%

14.2

%

21.4

%

Spain

 

11.3

%

1.8

%

13.1

%

UK

 

15.0

%

2.9

%

17.9

%

Statutory Total

 

12.2

%

4.5

%

16.7

%

Proportionate Total

 

10.3

%

3.7

%

14.0

%

 

 

NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES – HISTORY

 

 

12 MONTHS TO

 

COUNTRY

 

DECEMBER
2003

 

MARCH
2004

 

JUNE
2004

 

SEPTEMBER
2004

 

DECEMBER
2004

 

Germany

 

17.2

%

17.4

%

17.4

%

17.6

%

17.7

%

Italy

 

12.7

%

13.3

%

13.5

%

14.1

%

14.4

%

Japan

 

21.8

%

21.9

%

21.9

%

21.8

%

21.4

%

Spain

 

11.0

%

11.4

%

11.8

%

12.4

%

13.1

%

UK

 

15.5

%

16.1

%

16.6

%

17.3

%

17.9

%

Statutory Total

 

15.9

%

16.1

%

16.3

%

16.5

%

16.7

%

Proportionate Total

 

12.5

%

13.0

%

13.3

%

13.6

%

14.0

%

 

8


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

 

 

VODAFONE GROUP

 

PUBLIC LIMITED COMPANY

 

(Registrant)

 

 

 

 

 

 

 

 

 

Dated: January 26, 2005

By:  /s/ S R SCOTT

 

Name:

Stephen R. Scott

 

Title:

Company Secretary

 

9