Vodafone Group Plc ("Vodafone") today announces key performance indicators for the three month period to 30 June 2001, including measures which indicate the stabilisation of registered blended average revenue per user ("ARPU").

Customer Activity Levels

The total inactive customer base in Vodafone's controlled subsidiaries at30 June 2001 was 10%, the same level as reported at 31 March 2001. This comprises contract activity levels of 96% and prepaid activity levels of 87% compared to 94% and 88% respectively at 31 March 2001.

Vodafone's larger networks in Germany, Italy and the UK registered activity levels of 90%, 93%, and 84% respectively. The 3% improvement on March in Germany arose primarily as a result of now being able to report activity on an incoming as well as an outgoing basis.  On a like-for'like basis activity in Germany has remained stable. Activity levels in Italy have remained constant in the period to 30 June 2001 at 93%. Prepay activity in the UK has decreased contributing to a 4% decline in activity compared to 31 March 2001 which reflects the high level of upgrading which took place in the Christmas quarter. The figures for the UK are on outgoing calls only and it is expected that activity rates will increase when incoming calls can be systematically measured, which is expected to be available for reporting in the Christmas quarter.

Registered Blended ARPU

Registered blended ARPU, based on a 12 month rolling average, declined from March 2001 to June 2001 by 9.5% in Germany and 4.9% in the UK. ARPU was stable in Italy. The decline in Germany is not unexpected given the exceptionally strong customer growth of lower spending prepaid customers in the year to 31 March 2001. The decline in the UK reflects the change in mix in the customer base.

However, the trend in registered ARPU for the Group over the last six months is showing signs of stabilising, as demonstrated by the following information for the Group's largest controlled networks.

MONTHLY REGISTERED BLENDED ARPU FOR THE 12 MONTHS TO 30 JUNE 2001

Active ARPU

Vodafone introduced a new industry measurement of active customers in March 2001. This is the second quarter for which Vodafone has collated and reported on this information. As there is no historical information beyond the last quarter, Vodafone will include active ARPU numbers when it has a history of performance for a proper basis of comparison. However, the underlying levels of active customers spend continue to be higher than the reported registered ARPU.

Data as a Percentage of Service Revenues

In addition, Vodafone reports data revenues as a percentage of service revenues for its controlled subsidiaries. This reached 8.6% in the year to 30 June 2001, split 8.2% for messaging and 0.4% for internet. In the month of June this figure was 9.1% split 8.7% and 0.4% respectively. For the Group, as a whole on a proportionate basis, including associates, the corresponding figure was 6.6% for the year and 7.7% for the month of June.

Sir Christopher Gent,Chief Executive of Vodafone said: "It is very encouraging to see the beginning of a stabilisation in registered blended ARPU levels, particularly as the customer base has been effected by the change in mix, and is representative of our focus on higher value customers. In addition, our change in commercial policies has improved EBITDA margins and operating profit margins during this quarter in line with what we intended."

 Mobile Telecommunications Businesses (14.2KB PDF)

For further information contact:

Tim Brown, Group Corporate Affairs Director
Melissa Stimpson, Head of Group Investor Relations
Darren Jones, Senior Investor Relations Manager
Jon Earl, Investor Relations Manager
Tel: +44 (0) 1635 673310