Vodafone’s Performance in Italy in Fiscal 1H16
Overview of Vodafone's Fiscal 1H16 Results
Vodafone’s service revenue in Italy
In the last part of the series, we looked at the performance of Vodafone (VOD) in the UK during fiscal 1H16. Here, we’ll look at Vodafone’s performance in Italy during the period. Vodafone’s revenue in Italy fell ~9.4% YoY, or year-over-year, to ~2.1 billion pounds in fiscal 1H16. Meanwhile, Vodafone Italy’s service revenue fell ~12.3%% YoY to ~1.9 billion pounds. On an organic level—excluding currency and merger and acquisition impacts—Vodafone’s revenue rose ~1.2% YoY in Italy during the period. However, organically, the service revenue here fell ~2% YoY during fiscal 1H16.
During 1H16, Vodafone’s fixed-line service revenue in Italy fell ~6.8% YoY to around 0.3 billion pounds. Meanwhile, Vodafone’s mobile service revenue in Italy dropped ~13.9% YoY to ~1.5 billion pounds.
Vodafone’s mobile customer metrics in Italy
In fiscal 2Q16, Vodafone Italy’s mobile customers fell ~5.3% YoY to about 24.7 million. During fiscal 2Q16, on a net basis, the company lost ~36,000 contract customers in this geography. Meanwhile, the company’s prepaid net losses of customers were ~171,000 in Italy during fiscal 2Q16.
Vodafone’s mobile ARPU (average revenue per user) in Italy grew ~2.2% YoY to ~13.8 euros in fiscal 2Q16. This growth came from the prepaid customers. Vodafone’s prepaid ARPU in Italy rose ~11.9% YoY to ~12.2 euros. Meanwhile, the company’s contract ARPU fell ~14.9% YoY to ~21.1 euros in Italy in fiscal 2Q16.
The iShares Global Telecom ETF (IXP) had ~7.4% of its holdings in Vodafone at the end of September 2015. Note that ETF held a total of ~37.9% in AT&T (T), Verizon (VZ), and Telefonica (TEF) on the same date.
Browse this series on Market Realist:
