Info-tech

New customers, smartphone demand boost Vodafone revenues

Vidya Ram London | Updated on November 10, 2017 Published on February 03, 2011




A strong demand for smart phones in the UK and a large surge in new customers in India and Turkey drove Vodafone to a strong result in the quarter ending December. Service revenues rose to £11.9 billion, a 3 per cent gain, the firms said on Thursday.

With a 31.7 per cent growth in service revenues, Turkey was by far the strongest performer, though the Indian division also turned in a strong performance with 16.7 per cent growth. That growth was driven by an 8.7 million net rise in new customers in the quarter, and an increased usage of voice services as the firm cut prices in the face of steep competition. Around 1.1 per cent of the revenue increase was contributed by telecom tower firm Indus Towers, the joint venture between Vodafone Essar, the Bharti Group and the Idea Group.

The firm said it hoped to launch the 3G network during this quarter, following the auctions last year.

Firm on India tax charges

Vodafone remained firm in its stance on Indian tax liabilities following the Hutchison deal in 2007. “Vodafone International Holdings considers that neither it nor any other members of the Group is liable for such withholding tax or is liable to be made an agent of Hutchison,” said the firm in its quarterly management statement.

Elsewhere, Vodafone delivered a strong performance, with service revenues rising 7 per cent in the UK, which Vodafone attributes to the rising popularity of data services on smart phones. There was also a 4.6 per cent rise in revenues at Vodacom in South Africa, and 6.5 per cent growth in its African, West Asian and Asia-Pacific Operations. Continental Europe proved the weakest spot for the company, with reported revenues falling some 1.9 per cent overall, with steep falls in Spain, Italy and Germany.

The firm said it was on track to meet its guidance for the year, with adjusted operating profit to be towards the upper end of its £11.8-£12.2 billion range. However, it does not include the impact of the launch of the iPhone by its US joint venture, Verizon Wireless.

Published on February 03, 2011

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.