Interim Management Statement for the Quarter Ended 31 December 2014
Q3 Group organic service revenue declined 0.4%*; Europe -2.7%*, AMAP 5.9%*
Steady recovery in Europe, return to growth in UK: Germany -1.0%*, UK 0.9%*, Italy -7.4%*, Spain -8.9%*
Continued momentum in AMAP despite tougher conditions in South Africa: India 15.0%*, Vodacom -3.9%*, Turkey 11.8%*
Strong progress on Project Spring: mobile build 50% complete, European 4G coverage 65%
4G now available in 18 markets, with 13.7 million 4G customers across the Group
Integration of KDG and Ono on track, with synergies in line with expectations
Full year guidance confirmed, EBITDA £11.6 billion to £11.9 billion, free cash flow positive after all capex. Guidance excludes Ono
|Quarter ended 31 December 2014||Change|
|Reported ||Organic |
|Group service revenue||9,789||12.4||-0.4|
|Africa, Middle East and Asia Pacific ('AMAP')||3,062||2.4||5.9|
|Free cash flow1||-11||n/m|
Vittorio Colao, Group Chief Executive, commented:
“We have achieved another quarter of improving revenue trends in most of our major markets. Growth in India has accelerated again, driven by data. In Europe, improved commercial execution in both mobile and fixed over the last few quarters, combined with strong data demand and a more stable pricing environment, is supporting the steady recovery in the top line. Our recent cable acquisitions continue to perform well, with good progress made on integration.
“Our Project Spring investment programme is well advanced, with 4G coverage in Europe now 65%, dropped call rates down to 0.64%, and 26 million homes now passed by our own next generation networks: our customers are really beginning to notice the difference in experience that this investment delivers. We are confident that, over time, this will translate into further improvements in customer perception, ARPU and churn.”
* All amounts in this document marked with an “*” represent organic growth which presents performance on a comparable basis including merger and acquisition activity and movements in foreign exchange rates.
1 Free cash flow excludes restructuring costs for the quarter ended 31 December 2014 of £70 million (2013: £26 million).
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