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Southern European markets hit Vodafone revenues

Issues in Vodafone’s southern European deployments continue to drag down revenues, despite a strong performance in emerging markets

Vodafone today reported group revenues just shy of £11.4bn, 2% lower than the same period in 2011.

The mobile operator continues to suffer from poor performances in its southern European markets. Vodafone said revenues had dropped year-on-year by 11.3% in Spain and 13.8% in Italy alone. 

Vodafone's overall revenues for the region fell 17% to £2.34bn.

But even stronger market places in the UK and Germany showed drops in revenue, falling 5.2% and 0.2% respectively. However the northern European market overall remained positive, growing 5.9% to £4.8bn.

“Our results continue to reflect very difficult market conditions in Europe,” said Vittorio Colao, CEO of the Vodafone Group. 

“We are addressing this through firm actions on cost efficiency, and continuing to invest in areas of growth potential.”

Such areas include Long Term Evolution (LTE) technology or 4G, which it has now rolled out in six markets – Germany, Portugal, Italy, South Africa, Greece and Romania – and plans to deploy in the UK later this year, following Ofcom’s spectrum auction.

Vodafone has also been making progress in emerging markets, with revenues rising by 9% in India and an even more impressive 18.4% in Turkey.

Its investment in Verizon Wireless continued to pay off too, with service revenue growing by 8.7% thanks to “strong customer additions”.

“We continue to make progress in our Vodafone 2015 strategy, with good revenue growth in data and emerging markets, the launch of LTE services in another four markets and the acquisition of new spectrum,” added Colao.

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