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 August 4, 2006

 

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   ü  

 

Form 40-F ___

 

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____

 

No  ü  

 

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 SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN EACH OF AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-110941) AND THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-81825) OF VODAFONE GROUP PUBLIC LIMITED COMPANY AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 


 

This Report on Form 6-K contains Vodafone Group Plc’s (“Vodafone”) key performance indicators for the quarter ended 30 June 2006.

 

All of the financial information presented in this document is unaudited.

 

The Group’s outlook for the financial year ending 31 March 2007 is contained in Vodafone’s Annual Report on Form 20-F for the year ended 31 March 2006. This document contains forward-looking statements which are subject to risks and uncertainties because they relate to future events. Some of the factors which may cause actual results to differ from these forward-looking statements can be found by referring to the information contained under the headings “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” in Vodafone Group Plc’s Annual Report on Form 20-F for the year ended 31 March 2006.

 

At the country level, service revenue growth is calculated in local currency and before the elimination of intercompany revenue. For Romania and South Africa, this calculation also assumes the Group’s increased equity interest is reflected in the whole of the current quarter and the same quarter last year. The basis of calculation for organic growth is included in the Vodafone’s Annual Report on Form 20-F for the year ended 31 March 2006.

 

Certain revenue relating to content delivered by SMS and MMS has been reclassified from messaging revenue to data revenue. All prior period results have been adjusted accordingly.

 

Vodafone, Vodafone live!, Vodafone Zuhause, Vodafone Casa and Stop the Clock are trademarks of the Vodafone Group.

 

References in this press release to “June” and “March” shall, unless the context requires otherwise, be deemed to be references to 30 June 2006 and 31 March 2006 respectively.

 

In April 2006, the Group announced changes to the organisational structure of its operations, effective from 1 May 2006. The results above are presented in accordance with this new organisation structure and all prior period results have been restated accordingly.

 

2


 

KEY PERFORMANCE INDICATORS FOR THE QUARTER ENDED 30 JUNE 2006

 

On 24 July 2006, Vodafone presented its key performance indicators for the quarter ended 30 June 2006. The main highlights are:

 

                  Good overall operating performance in challenging markets and in line with expectations

 

                  Growth in total revenue was 9.2%

 

                  4.5 million proportionate organic net additions, with a further 11.7 million from the acquisition of Telsim in Turkey. Total proportionate customer base now at 186.8 million

 

                  Continued growth in 3G in the quarter with 1.3 million 3G devices added. The total 3G device base is now 9.1 million in the Group’s subsidiaries and joint ventures and a further 2.0 million in the Group’s associates

 

                  3G Broadband through HSDPA now available in 8 of the Group’s markets

 

                  Over 7 million customers now registered for Vodafone Passport

 

                  Vodafone re-iterates its current year guidance

 

CHIEF EXECUTIVE’S STATEMENT

 

This is a robust operating performance in testing markets with revenue for the quarter in line with expectations. A number of our EMAPA businesses have recorded good customer growth and whilst many markets in Europe remain highly competitive, we are on track with our revenue and cost initiatives in this region.

 

Arun Sarin

 

3


 

Group review

 

Vodafone saw continued intense competition across Europe during the quarter, particularly in some of its major markets. However, a number of businesses within the EMAPA region continue to perform very well, including Verizon Wireless in the United States and several of the Group’s emerging market operations. In order to execute against these trends, the Group recently reorganised into three principal business units: Europe, EMAPA and New Businesses.

 

Good customer growth was recorded across many of the Group’s markets during the quarter, with organic proportionate net customer additions of 4.5 million representing annualised quarterly growth in customers of 10.6%. With market penetration rates now typically over 100% in Western Europe, Vodafone is focused on stimulating additional revenue streams from existing customers.

 

Total revenue growth was 9.2%. Termination rate reductions continue to affect the performance in several businesses, most notably Italy.

 

3G sales continue to develop in line with expectations, with 1.3 million net additions in the quarter. This brings the closing total at the end of June to 9.1 million, including 8.2 million consumer devices. 3G net additions in the quarter are over 90% higher than recorded in the same quarter last year. Data revenue growth for the Group’s mobile businesses in the quarter was 40.2% compared with the same quarter last year. In continuing to improve the service offering, 3G Broadband through HSDPA is now available in 8 of the Group’s markets bringing enhanced data speeds to customers, with an initial focus on business users.

 

Overall, these key performance indicators are in line with the Group’s expectations for the full year. The Group anticipates continued investment in customers together with ongoing operating cost management.

 

Europe

 

The European region recorded 891,000 proportionate organic net customer additions in the quarter, bringing the total proportionate base to 94.1 million. Registered 3G devices increased by 1.2 million to 8.7 million.

 

Total revenue growth was 0.5%. Service revenue growth has reduced across many markets in the quarter due to the timing of Easter. Underlying trends for service revenue, excluding the impact from changes in termination rates and seasonal effects, were similar to the quarter to March in Italy, with a slight improvement in Germany and the UK, and continued strong performance in Spain.

 

The Group’s cost initiatives remain on track. In IT application, development and maintenance, Vodafone expects to sign master service agreements with two vendors before the end of the calendar year and the consolidation of data centres is ahead of schedule. The centralisation of network supply chain management is also progressing well with benefits expected in the second half of the current financial year.

 

Germany

 

The German market remains competitive, with net customer additions of 253,000 in the quarter, increasing closing customers to 29.4 million. An additional 312,000 3G devices were registered during the quarter, taking the closing base to 2,337,000. Vodafone Germany now has 894,000 Vodafone Zuhause customers, adding 446,000 customers during the quarter.

 

Annualised blended churn for the quarter increased to 20.7% from 17.3% for the same quarter last year, mainly as a result of the increase in prepaid churn from 21.1% to 26.0% due to the disconnection of inactive customers arising from increased competition in the market.

 

Blended ARPU for the quarter was 9.0% lower than the same quarter last year due to termination rate cuts in December 2005 and higher prepaid inactivity due to competitive pressures, partially offset by strong growth in data revenue. Total voice usage increased 19.8% compared with the same quarter last year due to the success of usage stimulation initiatives.

 

Service revenue declined 2.9% compared with the same period last year, as the increase in the customer base was more than offset by the reduction in termination rates and other factors affecting ARPU, with a decline in voice revenue of 5.1%. Excluding termination rate cuts, underlying service revenue was broadly stable when

 

4


 

compared with the same quarter last year. Data revenue increased by 43.5% as a result of increased penetration of 3G devices and the success of data services including Mobile TV and music, with Vodafone Germany maintaining its position as the leading mobile operator for full track music downloads. Messaging revenue declined 4.7% due to the impact of increased voice, and reduced messaging, promotional activities and revised tariffs for some machine to machine services in the quarter.

 

Increased gross additions and increased investment in retention activities, targeted at higher value customers, led to net acquisition and retention costs as a percentage of service revenue being slightly higher than the same quarter last year.

 

Italy

 

The Italian market continues to be highly competitive, with Vodafone Italy registering 69,000 proportionate net customer additions in the quarter, taking the total proportionate base to 18.6 million. Closing proportionate 3G devices increased by 207,000 to 2,457,000. Vodafone Casa, a tariff option targeted at substituting fixed line voice usage for mobile, was successfully launched in the quarter with the strong take up being ahead of expectations.

 

Annualised blended churn for the quarter rose to 20.8% from 17.3% for the same quarter last year, largely driven by prepaid churn increasing from 17.5% to 21.1%. This was due to the disconnection of inactive customers driven by an increase in multiple SIMs arising from competitive pressures.

 

Blended ARPU for the quarter decreased by 9.2% compared with the same quarter last year, principally as a result of a reduction in termination rates which took effect from 1 September 2005, together with the impact from a higher level of promotional activity, a fall in activity rates as a result of competitive pressures and higher penetration. A number of promotions stimulated underlying total voice usage, which increased by 7.1% compared with the same quarter last year.

 

Service revenue declined by 3.4% compared with the same quarter last year as the reduction in termination rates and other factors impacting ARPU more than offset growth in the customer base, with voice revenue declining by 5.9%. The termination rate cut impacted revenue growth by 5.7%. Messaging revenue increased by 7.3%, benefiting from the success of promotions in the quarter, and data revenue grew by 22.4%, following the increased penetration of 3G devices and data promotions.

 

Net acquisition and retention costs as a percentage of service revenue for the quarter was broadly stable compared with the same period last year, with an increase in the cost per acquisition and upgrade due to the focus on higher value customers offset by a reduction in upgrade volumes.

 

Spain

 

The Group continues to perform strongly in Spain, adding a further 428,000 customers in the current quarter. This represented growth in the closing customer base of 17.8% since 30 June 2005, increasing the total customer base to 13.9 million. A strong and successful focus on attracting contract customers led to 95.2% of the net additions in the quarter being contract customers, increasing the proportion of contract customers in the base to 51%. Vodafone also continued to be a leader in the 3G market in Spain, with an increase of 320,000 in the number of registered 3G devices to 1,222,000 in the quarter.

 

Annualised blended churn for the quarter fell by 1.2 percentage points to 20.5% compared with the same quarter last year. This resulted from a decrease in contract churn to 12.3% reflecting the success of the competitive tariffs and promotions launched during the year and increased upgrade activity. Prepaid churn was stable compared with the same quarter last year.

 

Blended ARPU for the current quarter decreased by 2.5% compared with the same quarter last year, driven by the termination rate reduction in November 2005, pricing pressures in the market and the impact of lower spending new customers. Voice usage increased by 23.5% compared with the same quarter last year assisted by new tariffs and promotions launched during the year and the higher average customer base.

 

Service revenue grew by 15.1% compared with the same quarter last year, primarily due to the growth in the customer base, partially offset by the impact of termination rate reductions. The termination rate cut impacted

 

5


 

revenue growth by 2.2%. Voice revenue increased by 12.5% compared with the same quarter last year with increased voice usage offset by lower ARPU. Messaging revenue grew by 14.6% reflecting the higher average customer base and data revenue increased by 62.8%, which benefited from specific promotions and the increased 3G customer base.

 

Net acquisition and retention costs as a percentage of service revenue increased in the quarter compared with the same quarter last year due to the increased level of contract additions.

 

UK

 

The UK market continues to be extremely competitive, with Vodafone experiencing a decline in the customer base of 119,000 in the current quarter. This comprised 29,000 net additions for contract customers and a decline in prepaid customers of 148,000. Registered 3G devices increased by 18.9% during the quarter to a closing base of 1,228,000.

 

Annualised blended churn for the quarter has remained stable compared with the same quarter in the previous year at 32.8%. Contract churn has fallen by 3.1 percentage points to 20.1% due to customer relationship management activities and an increasing proportion of customers signing up for 18 month contracts. Prepaid churn increased, primarily as a result of the impact of customer self-upgrades.

 

Blended ARPU for the quarter decreased by 3.7% compared with the same quarter last year, driven primarily by higher inactivity rates in prepaid and lower voice ARPU, partially offset by increased data ARPU. The lower voice ARPU was driven by the launch of promotions and propositions such as Stop the Clock, which successfully contributed to voice usage growth of 5.8%.

 

Service revenue growth was 1.3% compared with the same quarter last year. This was achieved mainly by increases in the average customer base and data revenue, offset by lower voice ARPU. Voice revenue declined very slightly compared to the same quarter last year as a result of lower voice ARPU, partially compensated for by the increased average customer base. Messaging revenue increased 6.6% following the increase in the average customer base and the uptake of messaging add-on bundles. Data revenue increased by 16.7% compared with the same quarter last year, resulting from the increase in 3G registered devices and related services, particularly for business customers where Vodafone continues to demonstrate clear market leadership.

 

On 1 July, the UK enhanced the competitiveness of its prepaid service with the launch of its Free Weekends offer, which rewards higher than average voice and text usage.

 

Net acquisition and retention costs as a percentage of service revenue fell this quarter compared with the same quarter last year, due to fewer gross additions generated at lower unit costs and fewer upgrades.

 

Other European Operations

 

The Group’s other European subsidiaries added 260,000 proportionate net additions, including 162,000 in Greece. Service revenue increased by 8.0% in Greece and 5.8% in Portugal compared with the same quarter last year, with stable service revenue in Ireland and a 2.0% decline in the Netherlands due to competitive pressures. The Group’s other European subsidiaries represent approximately 14% of Group total revenue for the quarter ended 30 June 2006.

 

EMAPA

 

Vodafone’s emerging market operations continue to perform well with strong performance in Romania, Egypt and South Africa.

 

Organic proportionate net additions of 3,647,000 were recorded for the EMAPA region, representing annualised quarterly growth in customers of 18.9%, with a further 11.7 million added through the acquisition of Telsim in Turkey. The total proportionate base increased to 92.7 million by the end of June, representing 49.6% of the Group’s total proportionate base.

 

6


 

Total revenue growth was 62.2%, with approximately two thirds of the reported growth resulting from the inclusion of revenue of new subsidiaries and increased stakes in joint ventures since their respective acquisition by the Group.

 

Subsidiaries

 

The Group’s EMAPA subsidiaries added 974,000 net proportionate organic customers in the quarter. Strong performances were recorded in Egypt and Romania. The Group’s newly acquired operation in Turkey has performed ahead of expectations since December and has registered 381,000 net additions in the period from acquisition on 24 May 2006 to the end of June.

 

In Egypt, service revenue increased by 38.6% driven by strong customer growth. Blended ARPU has decreased primarily due to a greater proportion of prepaid customers in the base.

 

Service revenue growth of 31.7% in Romania and 16.7% in Australia was principally driven by an increase in the average customer base compared to the same quarter last year.  ARPU also improved in these countries compared with the same quarter last year due to a focus on higher value customers in Australia and higher prepaid ARPU in Romania due to increased data usage.

 

In the Czech Republic, where market penetration is over 100%, Vodafone’s closing customer base is 16% higher than a year ago with ARPU only slightly lower due to continued focus on contract customers. Service revenue was broadly stable compared to the same quarter last year in New Zealand, due to the impact of increased competition and significant reductions in termination rates.

 

Joint Ventures

 

The Group’s other joint ventures in the EMAPA region reported 1,377,000 proportionate organic net customer additions in the quarter with 761,000 proportionate net additions from Vodacom, the Group’s joint venture in South Africa.

 

Growth of 19.8% in South Africa was driven by strong customer growth. The Group’s joint venture in India, Bharti Airtel, reported results for the quarter to June on 26 July.

 

Associates and investments

 

The Group’s associates and investments added 1,296,000 proportionate organic customers in the quarter.

 

Verizon Wireless registered net additions of over 1.8 million in the quarter with the Group’s proportionate share at 807,000. Verizon Communications reported its interim results and those of Verizon Wireless on 1 August. Vivendi reported its first half 2006 revenue and those of SFR on 27 July and will report interim results on 7 September.

 

New Businesses

 

In its presentation to investors and analysts on 30 May, the Group outlined its plans for developing new and additional revenue streams, particularly in its more mature markets where penetration is already over 100%. The New Businesses unit was, therefore, established to deliver new communications services to customers that address the converging areas of mobile, broadband and the internet. The Group’s initial focus in this area is on extending Vodafone’s service offerings in the home and at the office to meet customers growing voice and broadband needs, including the provision of DSL, through a mobile centric approach.

 

The first market to launch home based services was Germany through its Vodafone Zuhause proposition. With 894,000 registered customers by the end of June, Vodafone Germany is in the process of adding DSL as a

 

7


 

complementary service. The second key market to offer home based services is Italy, which launched Vodafone Casa in May and initial take up has been strong.

 

The Group expects to begin to offer similar services in the majority of its European markets during this financial year and several announcements are planned for the months ahead.

 

8


 

KEY PERFORMANCE INDICATORS

MOBILE TELECOMMUNICATIONS BUSINESSES

 

PROPORTIONATE CUSTOMERS – 1 APRIL 2006 TO 30 JUNE 2006

 

 

COUNTRY

 

PERCENTAGE
OWNERSHIP
(1)

 

AT 31
MARCH 2006

 

NET
ADDITIONS

 

OTHER
MOVEMENTS
(2)

 

AT 30
JUNE 2006

 

PREPAID(3)

 

 

 

 

(%)

 

(‘000s)

 

(‘000s)

 

(‘000s)

 

(‘000s)

 

(%)

 

 

Europe:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

100.0%

 

29,191

 

253

 

-

 

29,444

 

53.4

 

 

Italy

 

76.9%

 

18,490

 

69

 

-

 

18.559

 

92.1

 

 

Spain

 

100.0%

 

13,521

 

428

 

-

 

13,949

 

49.0

 

 

UK

 

100.0%

 

16,304

 

(119)

 

-

 

16,185

 

60.6

 

 

Albania

 

99.9%

 

772

 

19

 

-

 

791

 

96.8

 

 

Greece

 

99.9%

 

4,471

 

162

 

3

 

4,636

 

67.2

 

 

Ireland

 

100.0%

 

2,075

 

15

 

-

 

2,090

 

73.9

 

 

Malta

 

100.0%

 

175

 

2

 

-

 

177

 

89.7

 

 

Netherlands

 

99.9%

 

3,909

 

(28)

 

-

 

3,881

 

51.8

 

 

Portugal

 

100.0%

 

4,276

 

90

 

-

 

4,366

 

79.6

 

 

Total Europe

 

 

 

93,184

 

891

 

3

 

94,078

 

65.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMAPA:(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsidiaries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Australia

 

100.0%

 

3,177

 

(37)

 

-

 

3,140

 

73.6

 

 

Czech Republic

 

100.0%

 

2,214

 

49

 

-

 

2,263

 

47.0

 

 

Egypt

 

50.1%

 

3,314

 

237

 

-

 

3,551

 

90.8

 

 

Hungary

 

100.0%

 

2,063

 

(39)

 

-

 

2,024

 

66.6

 

 

New Zealand

 

100.0%

 

2,068

 

32

 

-

 

2,100

 

77.1

 

 

Romania

 

100.0%

 

6,384

 

351

 

-

 

6,735

 

65.9

 

 

Turkey

 

100.0%

 

-

 

381

 

11,665

 

12,046

 

89.9

 

 

 

 

 

 

19,220

 

974

 

11,665

 

31,859

 

79.2

 

 

Joint Ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Africa(5)

 

50.0%

 

10,968

 

761

 

25

 

11,754

 

89.7

 

 

Other

 

 

 

5,357

 

616

 

-

 

5,973

 

78.8

 

 

 

 

 

 

16,325

 

1,377

 

25

 

17,727

 

83.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States(6)

 

44.4%

 

23,530

 

807

 

4

 

24,341

 

5.5

 

 

Other

 

 

 

18,312

 

489

 

-

 

18,801

 

74.0

 

 

Total

 

 

 

41,842

 

1,296

 

4

 

43,142

 

63.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total EMAPA

 

 

 

77,387

 

3,647

 

11,694

 

92,728

 

67.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

170,571

 

4,538

 

11,697

 

186,806

 

67.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)          All ownership percentages are stated as at 30 June 2006 and exclude options, warrants or other rights or obligations of the Group to increase or decrease ownership in any venture with the exception of India, where the Group’s 10% economic interest represents a 5.6% direct interest in Bharti Airtel Limited and a subscription for convertible debentures in Bharti Enterprises Private Limited, representing a 4.4% indirect economic interest in Bharti Airtel Limited. Ownership interests have been rounded to the nearest tenth of one percent.

(2)          Other movements for the quarter to 30 June 2006 represent the acquisition of minority interests in Vodafone Greece, Vodafone Albania, the acquisition of substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey and the indirect acquisition of a 0.1% interest in Vodacom Group (Pty) Limited in South Africa.

(3)          Prepaid customer percentages are calculated on a venture basis. At 30 June 2006, there were 553.0 million venture customers.

(4)          EMAPA covers Eastern Europe, Middle East, Africa, Asia Pacific and Affiliates.

(5)          Customers in South Africa refers to the Group’s interests in Vodacom Group (Pty) Limited and includes customers in South Africa, the Democratic Republic of Congo, Lesotho, Mozambique and Tanzania. Net additions for the quarter to 30 June 2006 includes 0.2 million proportionate customer disconnections in South Africa during the period resulting from a change in the definition of an active customer to exclude calls forwarded to voicemail from the definition of a revenue generating activity.

(6)          The Group’s ownership interest in Verizon Wireless is 45.0%. However, 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 30 June 2006. 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.

 

9


 

KEY PERFORMANCE INDICATORS

MOBILE TELECOMMUNICATIONS BUSINESSES

 

VODAFONE LIVE! ACTIVE DEVICES

 

 

COUNTRY

 

AT 31
MARCH 2006

 

NET
ADDITIONS

 

AT 30
JUNE 2006

 

 

 

 

(‘000s)

 

(‘000s)

 

(‘000s)

 

 

Europe:

 

 

 

 

 

 

 

 

Germany

 

6,214

 

(20)

 

6,194

 

 

Italy(1)

 

4,097

 

246

 

4,343

 

 

Spain

 

5,514

 

537

 

6,051

 

 

UK

 

4,181

 

195

 

4,376

 

 

Other

 

4,229

 

404

 

4,633

 

 

Total Europe

 

24,235

 

1,362

 

25,597

 

 

 

 

 

 

 

 

 

 

 

Total EMAPA

 

2,835

 

761

 

3,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group Statutory Total(2)

 

27,070

 

2,123

 

29,193

 

 

 

 

 

 

 

 

 

 

 

(1)          Under IFRS, Vodafone Italy is treated as a joint venture. The figures in the table above represent the Group’s share of Vodafone live! active devices.

(2)          The table above only includes Vodafone live! customers in the Group’s subsidiary and joint venture undertakings. At 30 June 2006 there were an additional 6.5 million registered Vodafone live! venture customers in the Group’s associated undertakings.

 

 

3G DEVICES

 

 

COUNTRY

 

AT 31
MARCH 2006

 

NET
ADDITIONS

 

AT 30
JUNE 2006

 

 

 

 

(‘000s)

 

(‘000s)

 

(‘000s)

 

 

Europe:

 

 

 

 

 

 

 

 

Germany

 

2,025

 

312

 

2,337

 

 

Italy(1)

 

2,250

 

207

 

2,457

 

 

Spain

 

902

 

320

 

1,222

 

 

UK

 

1,033

 

195

 

1,228

 

 

Other

 

1,230

 

176

 

1,406

 

 

Total Europe

 

7,440

 

1,210

 

8,650

 

 

 

 

 

 

 

 

 

 

 

Total EMAPA

 

281

 

120

 

401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Group Statutory Total(2)

 

7,721

 

1,330

 

9,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer devices

 

7,061

 

1,178

 

8,239

 

 

Business devices

 

660

 

152

 

812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,721

 

1,330

 

9,051

 

 

 

 

 

 

 

 

 

 

 

(1)          Under IFRS, Vodafone Italy is treated as a joint venture. The figures in the table above represent the Group’s share of 3G devices.

(2)          The table above only includes 3G devices in the Group’s subsidiary and joint venture undertakings. At 30 June 2006 there were an additional 2.0 million Vodafone live!  with 3G and Vodafone Mobile Connect 3G/GPRS data card devices in the Group’s associated undertakings.

 

10



 

KEY PERFORMANCE INDICATORS

MOBILE TELECOMMUNICATIONS BUSINESSES

 

AVERAGE MONTHLY REVENUE PER USER IN THE QUARTER

 

COUNTRY

 

30 JUNE
2005

 

30 SEPTEMBER
2005

 

31 DECEMBER
2005

 

31 MARCH
2006

 

30 JUNE
2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

Total

 

24.3

 

24.4

 

22.9

 

21.5

 

22.1

 

(EUR)

 

Contract

 

39.8

 

41.0

 

38.8

 

37.2

 

38.4

 

 

 

Prepaid

 

9.2

 

9.0

 

8.3

 

7.5

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Italy

 

Total

 

30.4

 

29.9

 

27.7

 

26.4

 

27.6

 

(EUR)

 

Contract

 

79.4

 

75.0

 

73.7

 

71.0

 

72.6

 

 

 

Prepaid

 

25.8

 

25.9

 

23.5

 

22.2

 

23.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spain

 

Total

 

36.2

 

37.7

 

35.3

 

33.3

 

35.3

 

(EUR)

 

Contract

 

58.5

 

60.7

 

56.3

 

52.8

 

54.8

 

 

 

Prepaid

 

15.4

 

16.2

 

15.0

 

13.9

 

15.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UK

 

Total

 

24.6

 

25.1

 

23.8

 

22.7

 

23.7

 

(GBP)

 

Contract

 

46.5

 

47.9

 

44.8

 

43.9

 

45.2

 

 

 

Prepaid

 

9.5

 

9.9

 

9.5

 

8.8

 

8.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Albania

 

Total

 

2,255

 

2,534

 

2,259

 

2,098

 

2,122

 

(ALL)

 

Contract

 

18,783

 

19,815

 

18,499

 

16,777

 

17,240

 

 

 

Prepaid

 

1,680

 

1,936

 

1,701

 

1,593

 

1,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greece

 

Total

 

32.2

 

34.2

 

31.3

 

29.8

 

31.1

 

(EUR)

 

Contract

 

65.1

 

69.7

 

64.2

 

61.5

 

65.6

 

 

 

Prepaid

 

15.1

 

15.7

 

14.1

 

13.4

 

13.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ireland

 

Total

 

51.4

 

53.1

 

50.2

 

48.6

 

48.8

 

(EUR)

 

Contract

 

101.9

 

107.8

 

99.9

 

99.3

 

102.8

 

 

 

Prepaid

 

32.1

 

32.6

 

31.6

 

30.0

 

29.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Malta

 

Total

 

14.0

 

16.2

 

13.0

 

12.1

 

14.7

 

(MTL)

 

Contract

 

74.6

 

91.4

 

61.8

 

54.4

 

72.3

 

 

 

Prepaid

 

7.4

 

7.8

 

7.3

 

6.9

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Netherlands

 

Total

 

37.1

 

36.6

 

34.5

 

33.6

 

35.7

 

(EUR)

 

Contract

 

69.5

 

68.6

 

64.7

 

61.3

 

63.5

 

 

 

Prepaid

 

11.3

 

11.0

 

9.8

 

9.2

 

10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portugal

 

Total

 

26.4

 

27.1

 

24.0

 

23.3

 

23.5

 

(EUR)

 

Contract

 

67.3

 

69.8

 

61.9

 

62.4

 

62.2

 

 

 

Prepaid

 

14.3

 

14.7

 

13.4

 

12.9

 

13.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMAPA Subsidiaries(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Australia

 

Total

 

47.8

 

48.2

 

51.4

 

47.9

 

49.4

 

(AUD)

 

Contract

 

92.8

 

93.6

 

94.3

 

92.0

 

92.7

 

 

 

Prepaid

 

26.7

 

31.1

 

35.0

 

32.0

 

33.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Czech Republic

Total

 

680

 

679

 

679

 

644

 

674

 

(CZK)

 

Contract

 

1,029

 

1,017

 

1,015

 

951

 

978

 

 

 

Prepaid

 

340

 

342

 

337

 

311

 

331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Egypt

 

Total

 

91.4

 

89.4

 

74.1

 

79.0

 

79.4

 

(EGP)

 

Contract

 

268.6

 

283.9

 

274.1

 

289.3

 

292.1

 

 

 

Prepaid

 

60.7

 

62.4

 

52.0

 

56.0

 

57.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hungary

 

Total

 

5,321

 

5,153

 

4,885

 

4,647

 

5,066

 

(HUF)

 

Contract

 

11,302

 

11,264

 

9,666

 

8,809

 

9,129

 

 

 

Prepaid

 

3,391

 

3,046

 

3,043

 

2,887

 

3,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Zealand

Total

 

50.7

 

51.0

 

51.2

 

51.2

 

46.6

 

(NZD)

 

Contract

 

138.9

 

139.7

 

137.2

 

138.5

 

126.1

 

 

 

Prepaid

 

25.9

 

25.6

 

25.9

 

25.7

 

23.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Romania

 

Total

 

14.9

 

15.9

 

15.4

 

13.9

 

15.2

 

(USD)

 

Contract

 

30.2

 

31.1

 

29.5

 

27.0

 

29.5

 

 

 

Prepaid

 

6.3

 

7.1

 

7.0

 

6.0

 

6.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)          On 24 May 2006 the Group acquired substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a result, the Group expects to report Turkey’s average monthly revenue per user in the quarter with effect from the quarter ended 30 September 2006.

 

11


 

KEY PERFORMANCE INDICATORS

MOBILE TELECOMMUNICATIONS BUSINESSES

 

NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE

 

 

QUARTER TO 30 JUNE 2006

COUNTRY

MESSAGING

DATA

TOTAL

 

 

 

 

Germany

14.5%

 

6.7%

21.2%

 

 

 

 

 

Italy(1)

12.7%

 

4.6%

17.3%

 

 

 

 

 

Spain

8.9%

 

6.8%

15.7%

 

 

 

 

 

UK

15.4%

 

5.5%

20.9%

 

 

 

 

 

Group Statutory Total(2)

12.5%

 

4.9%

17.4%

 

 

HISTORIC NON-VOICE SERVICES INFORMATION

 

 

NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE IN THE QUARTER TO

COUNTRY

30 JUNE
2005

30 SEPTEMBER
2005

31 DECEMBER
2005

31 MARCH
2006

30 JUNE
2006

 

 

 

 

 

 

Germany

19.3%

19.5%

20.4%

21.7%

21.2%

 

 

 

 

 

 

Italy(1)

14.9%

16.8%

17.4%

18.0%

17.3%

 

 

 

 

 

 

Spain

13.7%

14.2%

14.8%

15.1%

15.7%

 

 

 

 

 

 

UK

19.3%

19.7%

20.7%

21.3%

20.9%

 

 

 

 

 

 

Group Statutory Total

16.2%

16.6%

17.2%

17.8%

17.4%

 

 

(1)          Under IFRS, Vodafone Italy is treated as a joint venture.

(2)          With effect from the quarter ended 30 June 2006, data revenue has been adjusted to include messaging content revenue which had previously been included in messaging. The impact for the quarter ended 30 June 2006 is to increase the total Group data revenue as a percentage of service revenue by 1.0% to 4.9% and to reduce the total Group messaging revenue as a percentage of service revenue by 1.0% to 12.5%.

 

12


 

KEY PERFORMANCE INDICATORS

MOBILE TELECOMMUNICATIONS BUSINESSES

 

CUSTOMER CHURN

 

 

ANNUALISED CHURN INFORMATION IN THE QUARTER TO

COUNTRY

30 JUNE
2005

30 SEPTEMBER
2005

31 DECEMBER
2005

31 MARCH
2006

30 JUNE
2006

 

 

 

 

 

 

Germany

Total

17.3%

19.7%

21.2%

22.6%

20.7%

 

 

 

 

 

 

 

 

Contract

13.1%

14.3%

16.8%

16.7%

14.6%

 

 

 

 

 

 

 

 

Prepaid

21.1%

24.6%

25.2%

27.7%

26.0%

 

 

 

 

 

 

 

Italy

Total

17.3%

18.7%

19.1%

19.5%

20.8%

 

 

 

 

 

 

 

 

Contract

14.9%

14.5%

16.6%

14.5%

17.2%

 

 

 

 

 

 

 

 

Prepaid

17.5%

19.1%

19.3%

19.9%

21.1%

 

 

 

 

 

 

 

Spain

Total

21.7%

20.7%

20.6%

20.6%

20.5%

 

 

 

 

 

 

 

 

Contract

13.6%

12.5%

13.9%

14.1%

12.3%

 

 

 

 

 

 

 

 

Prepaid

29.0%

28.1%

26.9%

26.9%

28.9%

 

 

 

 

 

 

 

UK

Total

32.4%

33.1%

31.9%

31.2%

32.8%

 

 

 

 

 

 

 

 

Contract

23.2%

21.6%

20.2%

21.2%

20.1%

 

 

 

 

 

 

 

 

Prepaid

38.3%

40.5%

39.5%

37.5%

40.9%

 

 

ACTIVE CUSTOMERS

 

 

ACTIVE CUSTOMERS(1) AT

COUNTRY

30 JUNE
2005

30 SEPTEMBER
2005

31 DECEMBER
2005

31 MARCH
2006

30 JUNE
2006

 

 

 

 

 

 

Germany

93.0%

92.8%

91.5%

90.6%

90.6%

 

 

 

 

 

 

Italy(2)

92.2%

92.8%

92.1%

91.2%

90.9%

 

 

 

 

 

 

Spain

94.8%

95.0%

95.7%

94.3%

93.8%

 

 

 

 

 

 

UK

88.8%

90.6%

90.8%

88.4%

85.7%

 

 

 

 

 

 

Group Statutory Total(1)

91.3%

92.2%

92.1%

91.6%

91.4%

 

 

(1)          An active customer is defined as one who either pays a monthly fee or has made or received a chargeable event in the last 3 months. The Group’s joint ventures in India and Kenya are currently unable to measure active customers under this basis and so have been excluded from the calculation of the Group Statutory Total activity percentages in the table above.

(2)          Under IFRS, Vodafone Italy is treated as a joint venture.

 

13


 

KEY PERFORMANCE INDICATORS

MOBILE TELECOMMUNICATIONS BUSINESSES

 

VOICE USAGE VOLUMES

 

 

TOTAL VOICE MINUTES(1) (MILLIONS) IN THE QUARTER TO

COUNTRY

30 JUNE
2005

30 SEPTEMBER
2005

31 DECEMBER
2005

31 MARCH
2006

30 JUNE
2006

 

 

 

 

 

 

Europe:

 

 

 

 

 

 

 

 

 

 

 

Germany

6,356

6,428

7,010

6,993

7,614

 

 

 

 

 

 

Italy(2)

7,173

7,164

7,521

7,746

7,687

 

 

 

 

 

 

Spain

5,648

5,859

5,966

6,362

6,978

 

 

 

 

 

 

UK

6,810

6,937

7,167

7,145

7,207

 

 

 

 

 

 

Albania

129

144

141

135

148

 

 

 

 

 

 

Greece

1,757

1,896

1,870

1,869

2,075

 

 

 

 

 

 

Ireland

1,263

1,279

1,302

1,289

1,380

 

 

 

 

 

 

Malta

42

47

43

43

49

 

 

 

 

 

 

Netherlands

1,697

1,601

1,755

1,733

1,820

 

 

 

 

 

 

Portugal

1,319

1,384

1,386

1,402

1,472

 

 

 

 

 

 

Sweden

688

681

753

-

-

 

 

 

 

 

 

Total Europe

32,882

33,420

34,914

34,717

36,430

 

 

 

 

 

 

EMAPA:

 

 

 

 

 

 

 

 

 

 

 

  Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

Australia

1,619

1,818

1,957

2,001

2,006

 

 

 

 

 

 

Czech Republic(3)

289

840

899

925

901

 

 

 

 

 

 

Egypt

1,979

2,341

2,278

2,442

2,869

 

 

 

 

 

 

Hungary

741

792

842

866

948

 

 

 

 

 

 

New Zealand

540

559

616

602

597

 

 

 

 

 

 

Romania(3)

525

1,754

1,931

1,914

1,873

 

 

 

 

 

 

 

5,693

8,104

8,523

8,750

9,194

 

 

 

 

 

 

Joint Ventures

2,021

1,957

2,598

4,684

5,763

 

 

 

 

 

 

TOTAL EMAPA

7,714

10,061

11,121

13,434

14,957

 

 

 

 

 

 

Group Statutory Total(4)

40,596

43,481

46,035

48,151

51,387

 

 

(1)          The total voice minute information presented in the table above represents the volume of minutes handled by each local network and includes incoming, outgoing and visitor calls. The voice minute information in respect of the Czech Republic, Germany, New Zealand and Romania reflects minutes billed which are rounded-up under certain tariffs.

(2)          Under IFRS, Vodafone Italy is treated as a joint venture. The figures in the table above represent the Group’s share of the voice minute information.

(3)          MobiFon S.A. in Romania and Oskar Mobil a.s. in the Czech Republic became subsidiaries on 31 May 2005. Voice minutes in the quarter to 30 June 2005 only include volumes during the month of June 2005. Prior to 31 May 2005, MobiFon S.A. was treated as a joint venture and was previously included within Other Joint Ventures.

(4)          On 24 May 2006 the Group acquired substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. As a result, the Group expects to report Turkey’s voice usage volumes with effect from the quarter ended 30 September 2006.

 

14


 

KEY PERFORMANCE INDICATORS

 

 

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:  August 4, 2006

By:      /s/        S R SCOTT

 

Name:  Stephen R. Scott

 

Title:     Company Secretary

 

15