Vodafone group's revenues decline 4.5% in Q1

Data traffic in the quarter increased by 63%.
Vittorio Colao:"Customers in multiple markets are attracted by our ‘more-for-more’ commercial offerings of larger data bundles and extra services."
Vittorio Colao:"Customers in multiple markets are attracted by our ‘more-for-more’ commercial offerings of larger data bundles and extra services."

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Vodafone Group's revenues for the three months ended 30 June 2016 have declined 4.5% year-on-year to GBP13.377 billion ($17.9 billion). The group’s European operations generated GBP8.715 billion, while the Africa, Middle East and Asia Pacific division pulled in a total of GBP4.365 billion.

Group service revenue stood at GBP12.278 billion in the first quarter of Vodafone Group’s 2016-17 fiscal year, down from a restated figure of GBP12.699 billion a year earlier. On an organic basis, however, group service revenue increased by 2.2%.

For the AMAP region, revenue decreased 6.2%, with strong organic growth offset by a 12.6 percentage point adverse impact from foreign exchange movements. On an organic basis service revenue increased 7.7%. Customer usage continued to
grow throughout the region, with voice and data usage up 6.4% and 63% respectively.

Vodacom's service revenue grew 4.4%, with strong customer and data growth in South Africa offset by a slowdown in
international customer growth following new customer registration processes. South Africa service revenue grew 5.7%, supported by customer growth in both prepaid and contract. Data revenue growth remained robust at 18.0% and data now contributes 38% of South Africa’s service revenues.

Vodacom’s International operations outside South Africa, which now represent 25% of Vodacom Group service revenue, saw a sharp slowdown in growth to 4.4%. Customer growth numbers were impacted by stricter compliance on customer registration requirements in Tanzania, the DRC and Mozambique. M-Pesa continues to perform well, with over 8.3 million customers (up from 5.6 million a year ago).

Vodafone Group CEO Vittorio Colao said: "We continued to make good progress during the first quarter. In Europe, our growth remains stable despite regulatory pressure on roaming revenue, with good performance in Germany, Spain and Italy while we are focussed on improving our performance in the UK. Our growth momentum in AMAP remains strong, with excellent performance in South Africa, Turkey and Egypt and ongoing recovery in India. Customers in multiple markets are attracted by our ‘more-for-more’ commercial offerings of larger data bundles and extra services, while we are seeing continued success with our fixed broadband and enterprise strategies."

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