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Vodafone Romania reports strong financial performance for the six months ended September 30, 2007

13 November 2007

  • Closing customer base of 8,579,377 representing a year on year growth of 19.9%
  • US $ 776.44 (EURO 570.23) million in service revenue, for a 23.1% growth compared with same period previous year
  • EBITDA reached US $ 391.67 (EURO 287.57) million for a 21.4% year on year growth
  • The highest ARPU in the Romanian telecommunications GSM market, of US $ 15.71 (EURO 11.54), for the six months to September 2007

Vodafone Romania announces key performance indicators for the six months ended September 30, 2007, as reported today by Vodafone Group Plc.

For the half year, Vodafone Romania reported 625,514 net additions, out of which 355,932 in the last quarter alone, for a total of 8,579,377 customer base. This represents a 19.9% growth, as compared with September 30, 2006.

For the six months ended September 2007, service revenue increased by 23.1 %, compared with the same period last year, reaching US $ 776.44 (EURO 570.23) million, while total revenue reached US $ 812.57 (EURO 596.75) million representing a 24.0% year on year growth.

In the July - September 2007 quarter, service revenue reached US $ 397.74 (EURO 289.31) million.

"We are very pleased with the strong financial performance achieved in all key indicators for the last six months. We continue to have a constant and healthy customer base growth reaching 8.579 million users at the end of September 2007, while achieving a strong service revenue growth of 23.1% compared with the same period last year. Our ARPU is the highest in the Romanian telecommunications GSM market reaching US $ 15.71 (EURO 11.54) in the quarter ending September 2007, showing that our customers make the most of Vodafone's services. At the same time, our operational profit has an ascendant trend with an EBITDA of US $391.67 (EURO 287.57) million and an EBITDA margin of 48.2%, for the last six months. Romania remains one of the top performing divisions in Vodafone Group and the Group's engine of growth in Central and Eastern Europe", said Liliana Solomon, CEO Vodafone Romania.

Earnings Before Interests, Taxes, Depreciation and Amortization (EBITDA) grew by 21.4% on a yearly basis, representing US $ 391.67 (EURO 287.57) million, for the six months ended September, 2007, and US $ 204.89 (EURO 149.01) million for the quarter July - September, 2007. EBITDA margin was 48.2% for the half year ending September 2007, and 49.2% for the quarter ending September 2007.

Monthly Average Revenue per User (ARPU) increased by 1.0% compared with the same period previous year, to US $ 15.71 (EURO 11.54) for the first six months ended September 2007. Annualized ARPU was US $ 188.51 (EURO 138.44) which is the highest ARPU in the Romanian telecommunications GSM market. For the quarter ending September 2007, ARPU reached US $ 15.76 (EURO 11.46), which is 0.6% higher as compared with the previous quarter.

The number of Vodafone Romania 3G devices went up to 495,578, by September 30, 2007.

Postpaid subscribers accounted for 34.1% and prepaid for 65.9% of Vodafone Romania's total subscriber base which represented a 1.3% growth in the postpaid ratio as compared to the same period last year.

Vodafone Romania, a subsidiary of Vodafone Group Plc., had 8.579 million customers, as of September 30, 2007. Vodafone is the world's leading international mobile communications group with equity interests in 25 countries across 5 continents and 241 million proportionate customers at the end of September 2007, as well as 39 partner networks.

The Key Performance Indicators in USD were restated into EURO based on Vodafone Group average exchange rates for each month of the fiscal year 2007-2008.