IFRS 15 was adopted on 1 April 2018 for our statutory reporting, without restating prior year figures. This report shows our performance on both an IFRS 15 and an IAS 18 basis for comparative purposes.

 

Highlights

  • Group total revenue of €10.9 billion (IFRS 15 basis), down 4.9% reflecting the adoption of IFRS 15 and FX headwinds
  • Q1 organic service revenue grew 0.3%* on an IAS 18 basis, or 1.1%* based on IFRS 15 (which is not impacted by the drag from UK handset financing)
  • Europe declined by 1.3%* (IAS 18), but grew 0.5%* excluding drags from regulation and UK handset financing
  • AMAP grew 7.0%* (IAS 18), with growth that was faster than local inflation in South Africa, Turkey and Egypt
  • India declined by 22.3%* (IAS 18) due to price competition and MTR cuts, but was down only 1.4% compared to Q4
  • Growth engines supporting solid commercial momentum: Mobile data traffic grew 57%; 196,000 broadband net adds, and a record 289,0001 converged net adds; Enterprise grew 0.9%*, or 2.0%* excluding regulation
  • Guidance reiterated: underlying2 organic adjusted EBITDA growth of 1-5%, FCF pre-spectrum of at least €5.2 billion

 

Quarter ended 30 June

 

   
  2018
IFRS 15
€m
2017
IAS 18
€m
Statutory
Growth
%
 
Group revenue 10,910 11,474 (4.9)  
Europe 7,966 8,299 (4.0)  
Africa, Middle East & Asia Pacific ('AMAP') 2,652 2,881 (7.9)  
         

Alternative performance measures3

 
      Growth Growth
  2018
IAS 18
€m
2017
IAS 18
€m
IAS 18
Organic*
%
IFRS 15
Organic*
%
Group service revenue 9,850 10,282 0.3 1.1
Europe 7,494 7,624 (1.3) (0.4)
AMAP 2,223 2,430 7.0 7.2

Vittorio Colao, Group Chief Executive, commented:

“The Group’s organic service revenue growth slowed during the first quarter, in line with expectations. The majority of our operations performed well, with ongoing momentum in Germany, further underlying recovery in the UK and continued good growth in AMAP, all of which helped to offset increased competition in Italy and Spain. Our commercial performance was solid, with further broadband market share gains in Europe, a record number of customers adopting our converged propositions, and the continued success of our world-leading IoT platform. In India, where competition remains intense, we have now received conditional approval from the Department of Telecoms for the merger of Vodafone India and Idea Cellular, which we aim to close before the end of August, allowing us to unlock substantial synergies. The Group’s overall performance (including good progress in reducing absolute operating costs for the third year running) provides us with the confidence to reiterate our outlook for the year”.

 

For further information:

Investor Relations
Telephone: +44 7919 990230

Media Relations
www.vodafone.com/media/contact

Notes:

* All amounts in this document marked with an “*” represent organic growth which presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates. Organic growth is an alternative performance measure. See “Alternative performance measures” on page 9 for further details and reconciliations to the respective closest equivalent GAAP measure.

  1. Converged net additions are shown excluding the first time inclusion in Germany of prepaid mobile customers with fixed products.
  2. Organic adjusted EBITDA growth excluding the impact of settlements and UK handset financing.
  3. Alternative performance measures are non-GAAP measures that are presented to provide readers with additional financial information that is regularly reviewed by management and should not be viewed in isolation or as an alternative to the equivalent GAAP measure. See “Alternative performance measures” on page 9 for more information and reconciliations to the closest respective equivalent GAAP measure and “Definition of terms” on page 13 for further details.