Trading update for the quarter ended 30 June 2015
Q1 Group organic service revenue grew 0.8%*; Europe -1.5%*, AMAP 6.1%*
Continued recovery in Europe: Germany -1.2%*, UK 0.2%*, Italy -2.0%*, Spain -5.5%*
Momentum in AMAP, South Africa back to growth: India 6.9%*, Vodacom 4.5%*, Turkey 15.0%*
Strong progress on Project Spring, mobile build 71% complete, European 4G coverage 75%
24.1 million 4G customers across 18 markets
Progress in unified communications: 12.3 million fixed broadband customers, launched broadband in UK
Second consecutive quarter of enterprise growth, service revenue +1.8%*
|30 June 2015||Reported||Organic*|
|Group revenue||10,113||(0.9)||3.3 |
|Group service revenue||9,169||(2.9)||0.8|
|Africa, Middle East and Asia Pacific ('AMAP')1 ||2,986||4.0||6.1|
Vittorio Colao, Chief Executive, commented:
“We have made a good start to the year. Our emerging markets have maintained their strong momentum and more of our European businesses are returning to growth, as customer demand for 4G and data takes off. We continue to hit our Project Spring build milestones and customers are beginning to value the improvement in service that is resulting: contract churn in Europe is now falling and mobile ARPU trends are stabilising in a number of key markets. Our other key growth areas – unified communications and enterprise – are performing strongly, benefiting from the increased capabilities and footprint that our higher levels of investment are delivering. However, our markets are, as always, highly competitive and we therefore have to remain very focused on efficiency, cost control, and excellent value and service to customers, while continuing to deliver a good return for shareholders.
For further information:
Telephone: +44 7919 990230
* 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.
1 The Group has amended its reporting to reflect changes in the internal management of its Enterprise business. The primary change has been that on 1 April 2015, the Group redefined its segments to report international voice transit service revenue within common functions rather than within the service revenue amount disclosed for each country and region. The service revenue amounts presented for the quarter ended 30 June 2014 have been restated onto a comparable basis together with all disclosed organic service revenue growth rates. There is no impact on total Group service revenues.