UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
6-K
Report
of Foreign Private Issuer
Pursuant
to Rules 13a-16 or 15d-16 under
the
Securities Exchange Act of 1934
Dated
July 23, 2021
Commission
File Number: 001-10086
VODAFONE
GROUP
PUBLIC
LIMITED COMPANY
(Translation
of registrant’s name into English)
VODAFONE
HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form
20-F x Form 40-F ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate
by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
¨ No x
If
“Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-____.
This Report
on Form 6-K contains a Stock Exchange Announcement dated 23 July 2021 entitled ‘Vodafone
Group Plc
Q1 FY22 trading update’.
Vodafone
Group Plc
Q1 FY22 trading update
23
July 2021
Growth
in Europe and Africa
|
·
|
Group
service revenue growth of 3.3%* (Q4: 0.8%*), with growth across both Consumer and Business
segments
|
|
·
|
Strong
service revenue trend, including one-off growth of around 1.0 percentage point following
COVID-19 disruption last year
|
|
·
|
Good
service revenue growth in Germany of 1.4%* (Q4: 1.2%*)
|
|
|
Q1 FY22
|
|
|
Q1 FY21
|
|
|
Reported
|
|
|
Organic
|
|
Q1
performance summary1
|
|
€m
|
|
|
€m
|
|
|
growth
|
|
|
growth2
|
|
Service revenue
|
|
|
9,390
|
|
|
|
9,110
|
|
|
|
3.1
|
%
|
|
|
3.3
|
%
|
- of which Germany
|
|
|
2,872
|
|
|
|
2,840
|
|
|
|
1.1
|
%
|
|
|
1.4
|
%
|
Other revenue
|
|
|
1,711
|
|
|
|
1,396
|
|
|
|
22.6
|
%
|
|
|
20.2
|
%
|
Total revenue
|
|
|
11,101
|
|
|
|
10,506
|
|
|
|
5.7
|
%
|
|
|
5.6
|
%
|
1.
|
Our
segmental reporting has been updated to include Vantage Towers A.G. as a separate reporting
segment for the year ending 31 March 2022. See page 4.
|
2.
|
Organic
growth is a Non-GAAP measure. All amounts marked with an "*" in the commentary
represent organic growth. See page 8.
|
|
·
|
Europe
mobile contract churn 1.6 percentage points lower than Q1 FY20 (pre-pandemic), but commercial
activity yet to return to normal conditions
|
|
·
|
Roaming
and visitor revenue grew 56% year-on-year, but still 54% lower than Q1 FY20 (pre-pandemic)
|
|
·
|
Vodafone
Business service revenue growth of 2.7%*, driven by strong growth in IoT and digital services
|
|
·
|
Strong
growth in Africa, with M-Pesa transaction volumes increasing 45% year-on-year
|
|
·
|
On
track to deliver FY22 guidance with Adjusted EBITDAaL expected to be between €15.0
– €15.4 billion and Adjusted FCF of at least €5.2 billion
|
Nick
Read, Group Chief Executive, commented:
|
|
“I
am pleased to report that we are back to service revenue growth in Europe, as well as Africa. This growth was broad-based within both
Consumer and Business segments, with the vast majority of our markets contributing. This is a result of our commercial and operating
momentum built over the past 3 years as part of our strategic transformation.
|
|
In
Europe, the operating and retail environment has not yet returned to normal conditions, but we are delivering a good service revenue
performance. In our Business segment, we are seeing stronger growth with our public sector and corporate customers, whilst further
building a pipeline of demand for our digital services, such as IoT, security and cloud.
|
|
In
May we announced, for the first time, our medium-term growth ambition. We have entered the year in line with this ambition, on track
to deliver our guidance for the year, and with a continued focus to optimise our portfolio, to accelerate the delivery of shareholder
value.”
|
For more information, please contact:
|
|
Investor Relations
|
Media Relations
|
Investors.vodafone.com
|
Vodafone.com/media/contact
|
ir@vodafone.co.uk
|
GroupMedia@vodafone.com
|
|
|
Registered
Office: Vodafone House, The Connection, Newbury, Berkshire RG14 2FN, England. Registered in England No. 1833679
A
webcast Q&A session will be held at 10:00 on 23 July 2021. The webcast and supporting information can be accessed at investors.vodafone.com
Operating
review
A new generation connectivity & digital services provider
We
are focused on growing our converged connectivity markets in Europe, and mobile data and payments in Africa. The next phase of our strategy
focuses on three customer commitments and three enabling strategies, all of which work together towards realising our vision to become
a new generation connectivity and digital services provider for Europe and Africa, enabling an inclusive and sustainable digital society.
Customer
commitments
|
Enabling
strategies
|
·
Best connectivity products and services
|
·
Simplified and most efficient operator
|
·
Leading innovation in digital services
|
·
Social contract shaping the digital society
|
·
Outstanding digital experiences
|
·
Leading gigabit networks
|
Strategic
progress summary
|
|
Units
|
|
|
Q1
FY22
|
|
|
Q1
FY21
|
|
Best
connectivity products & services
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
mobile contract customers1
|
|
|
million
|
|
|
|
65.6
|
|
|
|
64.5
|
|
Europe
broadband customers1
|
|
|
million
|
|
|
|
25.6
|
|
|
|
25.2
|
|
Europe
Consumer converged customers1
|
|
|
million
|
|
|
|
7.9
|
|
|
|
7.4
|
|
Europe
mobile contract customer churn
|
|
|
%
|
|
|
|
13.0
|
|
|
|
11.4
|
|
Africa
mobile customers2
|
|
|
million
|
|
|
|
181.6
|
|
|
|
165.4
|
|
Africa
data users2
|
|
|
million
|
|
|
|
86.6
|
|
|
|
82.1
|
|
Business
service revenue growth3
|
|
|
%
|
|
|
|
2.7
|
|
|
|
(2.9
|
)
|
Leading
innovation in digital services
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
TV subscribers1
|
|
|
million
|
|
|
|
22.3
|
|
|
|
22.2
|
|
IoT
SIM connections
|
|
|
million
|
|
|
|
129.8
|
|
|
|
107.3
|
|
Africa
M-Pesa customers2
|
|
|
million
|
|
|
|
49.7
|
|
|
|
42.8
|
|
Africa
M-Pesa quarterly transaction volume2
|
|
|
billion
|
|
|
|
4.5
|
|
|
|
3.1
|
|
Outstanding
digital experiences
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital
channel sales mix (acquisition)4
|
|
|
%
|
|
|
|
23.0
|
|
|
|
–
|
|
Digital
channel sales mix (upsell and retention)4
|
|
|
%
|
|
|
|
23.0
|
|
|
|
–
|
|
1.
Including VodafoneZiggo | 2. Africa including Safaricom | 3. Organic growth | 4. Based on Germany, Italy, UK, Spain only
Consumer
Europe (52% of service revenue)
In
Europe, we are a leading converged connectivity provider with 7.9 million converged customers, 113 million mobile connections, 142 million
marketable NGN broadband homes, we cover 98% of the population in the markets we operate in with 4G, and we have launched 5G in 243 cities
in 10 markets in Europe. We have achieved this leading position by focusing on our core fixed and mobile connectivity. We are enhancing
our products through capacity and speed upgrades, unlimited mobile plans, a distinct tiered branding hierarchy and convergent product
bundles. In Consumer, we maintained our leadership/co-leadership NPS position in three of our four biggest European markets. During the
quarter, retail footfall across our four largest markets improved compared to last year, but still remained 40% lower than pre-pandemic
levels.
Consumer
Africa and Turkey (16% of service revenue)
In
Africa, we are the leading provider of mobile data and mobile payment services. We have 182 million mobile customers in 8 markets which
represent 40% of Africa’s total gross domestic product. We cover 67% of the population in the African markets in which we operate
with 4G services.
Our
M-Pesa financial services platform grew strongly. During the quarter, the platform processed almost 4.5 billion transactions, an increase
of 45% year-on-year. The VodaPay ‘super-app’ will be launched in South Africa, with over 70 merchants already joining the
eco-system.
Vodafone
Business (27% of service revenue)
In
March 2021, we held a virtual briefing on Vodafone Business for investors and analysts (investors.vodafone.com/vbbriefing). This briefing
outlined that: we operate in attractive markets; we have unique scale and capabilities; we have strong operating momentum; and we are
on a clear growth pathway.
Our
commercial momentum reaccelerated during the quarter, with service revenue growth of 2.7%* (Q4: nil%*). The strong performance was driven
by growth in IoT and digital services, such as connectivity and cloud & security, and an easier comparative due to COVID-related
disruption to projects in the prior year. We continued to see strong demand from SMEs and the public sector, with improvements also driven
by the automotive sector and large multinationals. We became the first operator in Europe to launch Mobile Edge Computing (‘MEC’)
with Amazon Web Services Wavelength and launched Cybersecurity-as-a-Service (‘CaaS’) in Germany. We continued to support
SMEs with our V-Hub service, with 1.6 million visitors from 9 of our markets during the quarter. In Business, we maintained our leadership/co-leadership
NPS position in 15 of the 16 markets in which we operate.
Digital
services & experiences
We
will be expanding on our plans for outstanding digital services & experiences at a virtual investor briefing in September 2021. During
this event we will outline our progress on digitalising the consumer value chain in Europe; our performance and plans for financial services
and Africa; and expand on our end-to-end IoT solutions for business.
Our
Purpose
We connect for a better future
We
believe that Vodafone has a significant role to play in contributing to the societies in which we operate and we want to enable an inclusive
and sustainable digital society. We continue to make progress against our purpose strategy and provided a full update on our progress
in our recently published FY21 Annual Report and supplementary materials. We have also made a number of announcements with respect to
our purpose strategy during Q1.
Europe’s
largest network, powered by 100% renewables, driving carbon enablement
In
June, we announced that our entire European operations – including mobile and fixed networks, data centres, retail and offices
– will be 100% powered by electricity from renewable sources from 1 July 2021. As of today, our entire European network uses energy
generated from solar, wind or hydro sources. This marks a key step towards our goal of reducing our own carbon emissions to ‘net
zero’ by 2030 and across our entire value chain by 2040.
In
addition, we continue to improve our own energy efficiency. Our energy use in FY21 remained broadly stable despite significantly higher
data consumption. At our recent Technology Investor Briefing (investors.vodafone.com/vtbriefing), we explained that this was due to the
use of more efficient mobile technology, the decommissioning of legacy equipment, and the application of advanced analytics across our
network.
Our
networks and technologies also play a crucial role in helping to address climate change – last year, the Carbon Trust calculated
that our products and services enabled our Business customers to avoid around 7.1 million tonnes of CO2e in their own operations in FY21
(five times our own carbon footprint).
Circular
economy
In
May, we jointly launched the Europe-wide Eco Rating labelling scheme, working with four other major European operators and open to the
whole industry. The initiative aims to give consumers a simple way to identify and compare the most sustainable mobile phones. The
Eco Rating scores the environmental performance of a device across its life cycle – from extraction of raw materials, through its
entire use, to recycling or disposal at end of life. As well as providing better consumer choice, the scheme encourages suppliers
to reduce the environmental impact of their devices and supports the acceleration of the transition towards a more circular
model for mobile phones.
Performance
review
Growth in Europe and Africa
|
·
|
Group
revenue increased by 5.7%, supported by service revenue growth in Europe and Africa, and
a recovery in handset sales following COVID-19 disruption in the prior year
|
|
·
|
Group
service revenue growth of 3.3%* (Q4: 0.8%*), with growth across Consumer and Business segments
|
|
·
|
Strong
service revenue trend, including one-off growth of around 1.0 percentage point following
COVID-19 disruption last year
|
|
·
|
On
track to deliver FY22 guidance with Adjusted EBITDAaL expected to be between €15.0
– €15.4 billion and Adjusted FCF of at least €5.2 billion
|
Explanatory
note:
Following
the IPO of Vantage Towers A.G. in March 2021, Vodafone has updated its segmental reporting structure to reflect the way in which the
Group now manages its operations. Vantage Towers A.G. is now reported as a new segment within the Vodafone Group’s financial results.
This change in reporting structure has taken effect for FY22 onwards and has no impact on service revenue. Total revenue is unaffected
as charges from Vantage Towers A.G. to operating companies are eliminated on consolidation. A separate announcement that presents FY21
performance on a proforma basis for the new segmental reporting was published on 22 July 2021 and can be found on our website: investors.vodafone.com.
However, there will be no change to our statutory information for comparative periods, which will remain as previously disclosed.
All
amounts marked with an “*” in the commentary below represent organic growth which presents performance on a comparable basis,
including merger and acquisition activity and foreign exchange rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Other
|
|
|
Vantage
|
|
|
Common
|
|
|
Elimi-
|
|
|
|
|
|
|
Germany
|
|
|
Italy
|
|
|
UK
|
|
|
Spain
|
|
|
Europe
|
|
|
Vodacom
|
|
|
Markets
|
|
|
Towers1
|
|
|
Functions
|
|
|
nations1
|
|
|
Group
|
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
|
€m
|
|
Q1 FY22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
|
2,872
|
|
|
|
1,076
|
|
|
|
1,256
|
|
|
|
925
|
|
|
|
1,228
|
|
|
|
1,126
|
|
|
|
829
|
|
|
|
–
|
|
|
|
125
|
|
|
|
(47
|
)
|
|
|
9,390
|
|
Other revenue
|
|
|
340
|
|
|
|
166
|
|
|
|
296
|
|
|
|
105
|
|
|
|
156
|
|
|
|
338
|
|
|
|
91
|
|
|
|
303
|
|
|
|
220
|
|
|
|
(304
|
)
|
|
|
1,711
|
|
Total revenue
|
|
|
3,212
|
|
|
|
1,242
|
|
|
|
1,552
|
|
|
|
1,030
|
|
|
|
1,384
|
|
|
|
1,464
|
|
|
|
920
|
|
|
|
303
|
|
|
|
345
|
|
|
|
(351
|
)
|
|
|
11,101
|
|
Organic service revenue growth (%)2
|
|
|
1.4
|
%
|
|
|
(3.6
|
%)
|
|
|
2.5
|
%
|
|
|
0.8
|
%
|
|
|
4.2
|
%
|
|
|
7.9
|
%
|
|
|
18.4
|
%
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 FY21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
|
2,840
|
|
|
|
1,120
|
|
|
|
1,193
|
|
|
|
920
|
|
|
|
1,171
|
|
|
|
950
|
|
|
|
840
|
|
|
|
–
|
|
|
|
109
|
|
|
|
(33
|
)
|
|
|
9,110
|
|
Other revenue
|
|
|
327
|
|
|
|
110
|
|
|
|
270
|
|
|
|
74
|
|
|
|
147
|
|
|
|
203
|
|
|
|
97
|
|
|
|
–
|
|
|
|
210
|
|
|
|
(42
|
)
|
|
|
1,396
|
|
Total revenue
|
|
|
3,167
|
|
|
|
1,230
|
|
|
|
1,463
|
|
|
|
994
|
|
|
|
1,318
|
|
|
|
1,153
|
|
|
|
937
|
|
|
|
–
|
|
|
|
319
|
|
|
|
(75
|
)
|
|
|
10,506
|
|
Notes:
|
1.
|
Vantage
Towers A.G. is a new reporting segment for the year ending 31 March 2022. See explanatory
note above.
|
|
2.
|
Organic
growth is a Non-GAAP measure. See page 8.
|
Further
geographic performance information is available as a spreadsheet at investors.vodafone.com/reports-information/results-reports-presentations
Germany
Good service revenue growth maintained
Service
revenue grew by 1.4%* (Q4: 1.2%*) and quarterly trends remained broadly similar due to offsetting impacts from the COVID-19 pandemic.
Roaming and visitor revenue increased in Q1 having been materially impacted by lower international travel over the last 12 months. This
benefit was offset by lower variable call usage, which peaked during last year’s lockdown. Retail service revenue grew by 1.9%*
(Q4: 1.8%*).
Fixed
service revenue grew by 0.6%* (Q4: 1.4%*). The quarter-on-quarter trend was driven by lower variable call usage, partially offset by
good Business demand. Retail activity in Q1 continued to be heavily impacted by COVID-19 lockdown measures, however customer footfall
started to recover as restrictions eased towards the end of the quarter. We added 33,000 cable customers in the quarter, including 27,000
migrations from legacy DSL broadband. Almost half of our cable broadband customer base now subscribes to speeds of at least 250Mbps,
and gigabit speeds are now available to 22.5 million households across our hybrid fibre cable network.
Our
TV customer base declined by 75,000, reflecting lower gross customer additions given reduced retail activity during the COVID-19 pandemic.
At the end of last year, we launched the ‘DAZN’ Pay-TV channel and our new Apple set-top box product, having already launched
Vodafone TV on the Unitymedia footprint. The full benefit from these actions was not visible in our commercial results due to lockdown
restrictions. Our converged customer base continued to grow, with 29,000 Consumer additions in Q1. We now have almost 1.7 million Consumer
converged accounts.
Mobile
service revenue increased by 2.3%* (Q4: 0.9%*), primarily due to higher roaming and visitor revenue compared to the prior year. Contract
churn improved by 1.3 percentage points year-on-year to a record low of 10.7%. We also added a further 1.5 million IoT connections in
the quarter, supported by strong demand from the automotive sector. In June, we launched a digital-only second brand, SIMon mobile in
the value segment of the market.
We
switched off our 3G network on 1 July 2021, with spectrum re-assigned to increase the capacity, speed and coverage of our 4G network,
with 4G being up to 70% more energy efficient than 3G. Our 4G network now covers 99% of the population and our 5G network is available
to more than 25 million people. We also launched Europe’s first 5G standalone network in April. Standalone 5G enables higher speeds,
enhanced reliability and ultra-low latency, in addition to using 20% less energy on customers’ devices.
Italy,
UK, Spain and Other Europe
Growth supported by good performance and one-off benefits
Italy
Service
revenue declined by 3.6%* (Q4: -7.8%*), driven by continued price competition in the mobile value segment. The improvement in quarterly
trends was largely driven by an easier prior year comparative due to COVID-19, but also supported by the ongoing stabilisation of the
Consumer mobile customer base. Roaming and visitor revenue grew year-on-year and Business activity was higher compared to the prior year.
Market
mobile number portability (‘MNP’) volumes remained below last year’s level, despite the easing of national lockdown
measures. Our active mobile prepaid customer base remained unchanged quarter-on-quarter. Our second brand ‘ho.’ continued
to grow, with 115,000 net additions and now has 2.6 million customers. In June, we started migrating PostePay MVNO customers onto our
network, and we expect the migration to complete by the end of July. In fixed, our customer base remained stable at almost three million.
We also added 13,000 fixed-wireless access customers during the quarter, which are included in our mobile net additions.
Through
our own next generation network and partnership with Open Fiber, our broadband services are now available to 8.4 million households.
In addition, we cover 4.5 million households and businesses with fixed-wireless access, offering speeds of up to 100Mbps.
UK
Service
revenue grew by 2.5%* (Q4: -0.6%*). The improvement in quarterly trends was driven by lower comparative performance related to COVID-19
disruption in the prior year and good commercial performance in the current year, notably in Consumer prepaid. COVID-19 disruption eased,
leading to higher roaming and visitor revenue and the resumption of fixed project work in Business. This was partially offset by a reduction
in mobile termination rates which took effect as of June.
Our
commercial momentum reaccelerated in the quarter as retail store restrictions eased, adding 65,000 mobile contract customers in Q1. In
June, we launched ‘Vodafone Evo’, an innovative mobile contract proposition offering customers a combination of flexible
contracts, trade-in options, and early upgrades. We also announced an exclusive retail partnership with the Dixons Carphone Group, covering
300 stores and digital channels, with improved terms compared to our previous arrangement. We added 29,000 broadband customers in the
quarter, with good demand for our new Vodafone ‘Pro Broadband’ product, which we launched in March. We now have 940,000 broadband
customers, of which 467,000 are converged. Business demand for our SME and corporate products also remained strong, including for productivity
and security solutions.
Spain
Service
revenue grew by 0.8%* (Q4: -1.3%*) with the quarterly improvement in trends largely driven by roaming and visitor revenue. Q1 significantly
benefited from an easier prior year comparison following strict COVID-19 restrictions and customer support measures put in place last
year. However, this was partially offset by continued price competition.
The
market remains highly competitive, particularly in the value segment. We grew our mobile contract customer base by 27,000 during the
quarter, supported by strong public sector demand. Our second brand ‘Lowi’ added 60,000 mobile customers and now has a total
customer base of 1.3 million. In May, we announced price increases applying to the main Vodafone brand, effective across our customer
base from 15 July 2021.
Other
Europe
Service
revenue increased by 4.2%* (Q4: -0.2%*), with all markets growing during the quarter. The strong quarterly improvement was driven by
the year-on-year growth in roaming and visitor revenue and increased prepaid activity, with top-ups notably lower in Q1 last year as
a result of COVID-19 restrictions, as well as good commercial momentum.
In
Portugal, retail activity increased and we added 28,000 mobile contract customers and 16,000 fixed broadband customers. In Ireland, our
mobile contract customer base increased by 17,000 and mobile contract churn remained low at 8.6%. In Greece, we added 13,000 mobile contract
customers, supported by prepaid migrations, as well as 52,000 prepaid customers as lockdown restrictions eased and international tourism
grew year-on-year.
Vodacom
Good growth in South Africa, with an acceleration in international markets
Vodacom
service revenue grew by 7.9%* (Q4: 7.3%*). Growth accelerated in Vodacom’s international markets following significant growth in
M-Pesa transaction volumes and the reintroduction of M-Pesa peer-to-peer fees, which were temporarily suspended in some markets during
the COVID pandemic last year. This benefit was partially offset by lower growth in South Africa due to a strong prior year comparative.
In
South Africa, service revenue grew year-on-year but the rate of growth slowed quarter-on-quarter. The lower growth was attributable to
the expiry of temporary government support measures and social grants, which had supported consumer discretionary spend in the prior
year. We added 8,000 mobile contract customers and 515,000 prepaid customers, with the latter supported by our new ‘active day’s
management’ prepaid initiative, which encourages data use with daily allocations. Financial Services customers in South Africa
increased by 14% to 13.3 million, reflecting the expansion of our service offerings, and 68% of our mobile customer base now uses data
services.
In
Vodacom’s international markets, M-Pesa now represents 23.7% of total service revenue, an increase of 4.4 percentage points year-on-year,
and 65% of our customers are now using data services.
Further
information on our operations in Africa can be accessed here: vodacom.com.
Other
Markets
Growth rates accelerate as lockdown restrictions ease
Service
revenue increased by 18.4%* (Q4: 13.1%*), with the quarter-on-quarter improvement reflecting the impact of COVID-19 on roaming and visitor
revenue in the prior year, as well as increased demand for data across our markets.
Service
revenue growth in Turkey accelerated, reflecting price increases and the easing of lockdown restrictions. Mobile contract customer additions
were 223,000, supported by migrations from prepaid customers. Contract churn improved by 5.7 percentage points year-on-year to 15.2%.
Service
revenue growth in Egypt also accelerated, supported by the easing of lockdown restrictions, customer base growth and increased data usage.
During the quarter, we added 65,000 mobile contract customers and 447,000 prepaid mobile customers.
Vantage
Towers
Continued momentum and on track to meet FY22 guidance
Total
revenue increased to €303 million as more than 200 new tenancies were added during the quarter, bringing the tenancy ratio to 1.41x.
Vantage Towers continued to contribute to Europe’s digital transformation and reached a number of new partnership agreements with
customers during the quarter. Vantage Towers reported its results on 22 July 2021. Further information on Vantage Towers can be accessed
here: vantagetowers.com.
Following
the IPO of Vantage Towers, we have updated our segmental reporting structure to reflect the way in which we now manage our operations.
Vantage Towers is now reported as a new segment within our financial results. A separate announcement that presents FY21 performance
on a proforma basis for the new segmental reporting was published on 22 July 2021 and can be found on our website: investors.vodafone.com.
There will be no change to our statutory information for comparative periods, which will remain as previously disclosed.
Non-GAAP
measures
In
the discussion of the Group’s reported operating results, non-GAAP measures are presented to provide readers with additional financial
information that is regularly reviewed by management. However, this additional information presented is not uniformly defined by all
companies including those in the Group’s industry. Accordingly, it may not be comparable with similarly titled measures and disclosures
by other companies. Additionally, certain information presented is derived from amounts calculated in accordance with IFRS but is not
itself a measure defined under GAAP. Such measures should not be viewed in isolation or as an alternative to the equivalent GAAP measure.
The
non-GAAP measures discussed in this document are listed below.
Non-GAAP measure
|
|
Closest equivalent GAAP
measure
|
|
Definition
|
|
Reconciled on page
|
|
Organic service revenue growth
|
|
Reported service revenue growth
|
|
Service revenue comprises all revenue related to the provision of ongoing services including, but not limited to, monthly access charges, airtime usage, roaming, incoming and outgoing network usage by non-Vodafone customers and interconnect charges for incoming calls.
|
|
|
9
|
|
Organic mobile service revenue growth
|
|
Reported mobile service revenue growth
|
|
Mobile service revenue relates to the provision of mobile services.
|
|
|
9
|
|
Organic fixed service revenue growth
|
|
Reported fixed service revenue growth
|
|
Fixed service revenue relates to the provision of fixed line ('fixed') and carrier services.
|
|
|
9
|
|
Organic retail service revenue growth
|
|
Reported retail service revenue growth
|
|
Retail service revenue comprises Service revenue excluding Mobile Virtual Network Operator ('MVNO') and Fixed Virtual Network Operator ('FVNO') wholesale revenues.
|
|
|
9
|
|
Definition
and use of organic growth measures
All
amounts in this document marked with an “*” represent organic growth. This measure presents performance on a comparable basis,
including merger and acquisition activity and movements in foreign exchange rates.
Whilst
organic growth is not intended to be a substitute for reported growth, nor is it superior to reported growth, we believe that the measure
provides useful and necessary information to investors and other interested parties for the following reasons:
|
-
|
It
provides additional information on underlying growth of the business without the effect of
certain factors unrelated to its operating performance;
|
|
-
|
It
is used for internal performance analysis; and
|
|
-
|
It
facilitates comparability of underlying growth with other companies (although the term “organic”
is not a defined term under IFRS and may not, therefore, be comparable with similarly titled
measures reported by other companies).
|
We
have not provided a comparative in respect of organic growth rates as the current rates describe the change between the beginning and
end of the current period, with such changes being explained by the commentary in this document. If comparatives were provided, significant
sections of the commentary for prior periods would also need to be included, reducing the usefulness and transparency of this document.
Quarter
ended 30 June 2021
|
|
Q1
FY22
|
|
|
Q1
FY21
|
|
|
Reported
growth
|
|
|
Other
activity
(incl. M&A)
|
|
|
Foreign
exchange
|
|
|
Organic
growth*
|
|
|
|
€m
|
|
|
€m
|
|
|
%
|
|
|
pps
|
|
|
pps
|
|
|
%
|
|
Service
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany
|
|
|
2,872
|
|
|
|
2,840
|
|
|
|
1.1
|
|
|
|
0.3
|
|
|
|
–
|
|
|
|
1.4
|
|
Mobile
service revenue
|
|
|
1,254
|
|
|
|
1,226
|
|
|
|
2.3
|
|
|
|
–
|
|
|
|
–
|
|
|
|
2.3
|
|
Fixed
service revenue
|
|
|
1,618
|
|
|
|
1,614
|
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
–
|
|
|
|
0.6
|
|
Italy
|
|
|
1,076
|
|
|
|
1,120
|
|
|
|
(3.9
|
)
|
|
|
0.3
|
|
|
|
–
|
|
|
|
(3.6
|
)
|
Mobile
service revenue
|
|
|
782
|
|
|
|
815
|
|
|
|
(4.0
|
)
|
|
|
–
|
|
|
|
–
|
|
|
|
(4.0
|
)
|
Fixed
service revenue
|
|
|
294
|
|
|
|
305
|
|
|
|
(3.6
|
)
|
|
|
0.9
|
|
|
|
–
|
|
|
|
(2.7
|
)
|
UK
|
|
|
1,256
|
|
|
|
1,193
|
|
|
|
5.3
|
|
|
|
0.2
|
|
|
|
(3.0
|
)
|
|
|
2.5
|
|
Mobile
service revenue
|
|
|
895
|
|
|
|
846
|
|
|
|
5.8
|
|
|
|
–
|
|
|
|
(3.1
|
)
|
|
|
2.7
|
|
Fixed
service revenue
|
|
|
361
|
|
|
|
347
|
|
|
|
4.0
|
|
|
|
0.9
|
|
|
|
(2.8
|
)
|
|
|
2.1
|
|
Spain
|
|
|
925
|
|
|
|
920
|
|
|
|
0.5
|
|
|
|
0.3
|
|
|
|
–
|
|
|
|
0.8
|
|
Other
Europe
|
|
|
1,228
|
|
|
|
1,171
|
|
|
|
4.9
|
|
|
|
0.1
|
|
|
|
(0.8
|
)
|
|
|
4.2
|
|
Vodacom
|
|
|
1,126
|
|
|
|
950
|
|
|
|
18.5
|
|
|
|
–
|
|
|
|
(10.6
|
)
|
|
|
7.9
|
|
Other
Markets
|
|
|
829
|
|
|
|
840
|
|
|
|
(1.3
|
)
|
|
|
–
|
|
|
|
19.7
|
|
|
|
18.4
|
|
Vantage
Towers
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
Common
Functions
|
|
|
125
|
|
|
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
|
|
(47
|
)
|
|
|
(33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
service revenue
|
|
|
9,390
|
|
|
|
9,110
|
|
|
|
3.1
|
|
|
|
0.2
|
|
|
|
–
|
|
|
|
3.3
|
|
Other
revenue
|
|
|
1,711
|
|
|
|
1,396
|
|
|
|
22.6
|
|
|
|
(1.0
|
)
|
|
|
(1.4
|
)
|
|
|
20.2
|
|
Revenue
|
|
|
11,101
|
|
|
|
10,506
|
|
|
|
5.7
|
|
|
|
0.1
|
|
|
|
(0.2
|
)
|
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
growth metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vodafone
Business - Service revenue
|
|
|
2,542
|
|
|
|
2,464
|
|
|
|
3.2
|
|
|
|
0.3
|
|
|
|
(0.8
|
)
|
|
|
2.7
|
|
Germany
- Retail service revenue
|
|
|
2,800
|
|
|
|
2,755
|
|
|
|
1.6
|
|
|
|
0.3
|
|
|
|
–
|
|
|
|
1.9
|
|
Quarter
ended 31 March 2021
|
|
Q4
FY21
|
|
|
Q4
FY20
|
|
|
Reported
growth
|
|
|
Other
activity
(incl. M&A)
|
|
|
Foreign
exchange
|
|
|
Organic
growth*
|
|
|
|
€m
|
|
|
€m
|
|
|
%
|
|
|
pps
|
|
|
pps
|
|
|
%
|
|
Service
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany
|
|
|
2,885
|
|
|
|
2,852
|
|
|
|
1.2
|
|
|
|
–
|
|
|
|
–
|
|
|
|
1.2
|
|
Mobile
service revenue
|
|
|
1,274
|
|
|
|
1,262
|
|
|
|
1.0
|
|
|
|
(0.1
|
)
|
|
|
–
|
|
|
|
0.9
|
|
Fixed
service revenue
|
|
|
1,611
|
|
|
|
1,590
|
|
|
|
1.3
|
|
|
|
0.1
|
|
|
|
–
|
|
|
|
1.4
|
|
Italy
|
|
|
1,084
|
|
|
|
1,189
|
|
|
|
(8.8
|
)
|
|
|
1.0
|
|
|
|
–
|
|
|
|
(7.8
|
)
|
Mobile
service revenue
|
|
|
788
|
|
|
|
870
|
|
|
|
(9.4
|
)
|
|
|
0.1
|
|
|
|
–
|
|
|
|
(9.3
|
)
|
Fixed
service revenue
|
|
|
296
|
|
|
|
319
|
|
|
|
(7.2
|
)
|
|
|
3.4
|
|
|
|
–
|
|
|
|
(3.8
|
)
|
UK
|
|
|
1,231
|
|
|
|
1,287
|
|
|
|
(4.4
|
)
|
|
|
2.4
|
|
|
|
1.4
|
|
|
|
(0.6
|
)
|
Mobile
service revenue
|
|
|
880
|
|
|
|
909
|
|
|
|
(3.2
|
)
|
|
|
–
|
|
|
|
1.4
|
|
|
|
(1.8
|
)
|
Fixed
service revenue
|
|
|
351
|
|
|
|
378
|
|
|
|
(7.1
|
)
|
|
|
8.3
|
|
|
|
1.0
|
|
|
|
2.2
|
|
Spain
|
|
|
951
|
|
|
|
972
|
|
|
|
(2.2
|
)
|
|
|
0.9
|
|
|
|
–
|
|
|
|
(1.3
|
)
|
Other
Europe
|
|
|
1,233
|
|
|
|
1,233
|
|
|
|
–
|
|
|
|
(1.1
|
)
|
|
|
0.9
|
|
|
|
(0.2
|
)
|
Vodacom
|
|
|
1,078
|
|
|
|
1,091
|
|
|
|
(1.2
|
)
|
|
|
0.1
|
|
|
|
8.4
|
|
|
|
7.3
|
|
Other
Markets
|
|
|
827
|
|
|
|
881
|
|
|
|
(6.1
|
)
|
|
|
0.2
|
|
|
|
19.0
|
|
|
|
13.1
|
|
Common
Functions
|
|
|
136
|
|
|
|
137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
|
|
(59
|
)
|
|
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
service revenue
|
|
|
9,366
|
|
|
|
9,594
|
|
|
|
(2.4
|
)
|
|
|
0.4
|
|
|
|
2.8
|
|
|
|
0.8
|
|
Other
revenue
|
|
|
1,815
|
|
|
|
1,691
|
|
|
|
7.3
|
|
|
|
(0.8
|
)
|
|
|
3.6
|
|
|
|
10.1
|
|
Revenue
|
|
|
11,181
|
|
|
|
11,285
|
|
|
|
(0.9
|
)
|
|
|
0.2
|
|
|
|
2.9
|
|
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
growth metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vodafone
Business - Service revenue
|
|
|
2,522
|
|
|
|
2,658
|
|
|
|
(5.1
|
)
|
|
|
3.4
|
|
|
|
1.7
|
|
|
|
–
|
|
Germany
- Retail service revenue
|
|
|
2,812
|
|
|
|
2,762
|
|
|
|
1.8
|
|
|
|
–
|
|
|
|
–
|
|
|
|
1.8
|
|
Definitions
Term
|
|
Definition
|
Adjusted
EBITDAaL
(previously labelled Adjusted EBITDA. The metrics have the same definition).
|
|
Operating
profit after depreciation on lease-related right of use assets and interest on leases but excluding depreciation, amortisation and
gains/losses on disposal of owned fixed assets and excluding share of results in associates and joint ventures, impairment losses,
restructuring costs arising from discrete restructuring plans, other operating income and expense and significant items that are
not considered by management to be reflective of the underlying performance of the Group.
|
Adjusted
free cash flow (‘Adjusted FCF’)
|
|
Adjusted
free cash flow is free cash flow before spectrum, restructuring, integration costs and Vantage Towers growth capital additions. Growth
capital additions is on a cash basis and includes expenditure on new sites, ground lease optimisation and other adjacency opportunities
as defined by Vantage Towers.
|
Africa
|
|
Comprises
the Vodacom Group and businesses in Egypt and Ghana.
|
ARPU
|
|
Average
revenue per user, defined as customer revenue and incoming revenue divided by average customers.
|
Churn
|
|
Total
gross customer disconnections in the period divided by the average total customers in the period.
|
Common
Functions
|
|
Comprises
central teams and business functions.
|
Converged
customer
|
|
A
customer who receives fixed and mobile services (also known as unified communications) on a single bill or who receives a discount
across both bills.
|
Eliminations
|
|
Refers
to the removal of intercompany transactions to derive the consolidated financial statements.
|
Europe
|
|
Comprises
the Group’s European businesses.
|
GAAP
|
|
Generally
Accepted Accounting Principles.
|
IFRS
|
|
International
Financial Reporting Standard.
|
Incoming
revenue
|
|
Comprises
revenue from termination rates for voice and messaging to Vodafone customers.
|
Internet
of Things (‘IoT’)
|
|
The
network of physical objects embedded with electronics, software, sensors, and network connectivity, including built-in mobile SIM
cards, that enables these objects to collect data and exchange communications with one another or a database.
|
Mobile
customer revenue
|
|
Represents
revenue from mobile customers from bundles that include a specified number of minutes, messages or megabytes of data that can be
used for no additional charge (‘in-bundle’) and revenues from minutes, messages or megabytes of data which are in excess
of the amount included in customer bundles (‘out-of-bundle’). Mobile in-bundle and out-of-bundle revenues are combined
to simplify presentation.
|
Next
generation networks (‘NGN’)
|
|
Fibre
or cable networks typically providing high-speed broadband over 30Mbps.
|
Other
Europe
|
|
Other
Europe markets include Portugal, Ireland, Greece, Romania, Czech Republic, Hungary and Albania.
|
Other
Markets
|
|
Other
Markets comprise Turkey, Egypt and Ghana.
|
Other
revenue
|
|
Other
revenue includes connection fees, equipment revenue, interest income and lease revenue.
|
Reported
growth
|
|
Based
on amounts reported in euros as determined under IFRS.
|
Roaming
and Visitor
|
|
Roaming:
allows customers to make calls, send and receive texts and data on our and other operators’ mobile networks, usually while
travelling abroad. Visitors: revenue received from other operators or markets when their customers roam on one of our markets’
networks.
|
SME
|
|
Small
and medium sized enterprises.
|
Notes
|
1.
|
All
figures in this trading update are unaudited.
|
|
2.
|
References
to Vodafone are to Vodafone Group Plc and references to Vodafone Group are to Vodafone Group
Plc and its subsidiaries unless otherwise stated. Vodafone, the Vodafone Speech Mark Devices,
Vodacom and Together we can are trade marks owned by Vodafone. Vantage Towers is a trade
mark owned by Vantage Towers AG. Other product and company names mentioned herein may be
the trade marks of their respective owners.
|
|
3.
|
All
growth rates reflect a comparison to the quarter ended 30 June 2020 unless otherwise stated.
|
|
4.
|
References
to “Q4” and “Q1” are to the three months ended 31 March 2021 and
30 June 2021, respectively, unless otherwise stated. References to the “year”,
“financial year” or “FY22” are to the financial year ending 31 March
2022. References to the “last year”, “last financial year” or “FY21”
are to the financial year ended 31 March 2021 unless otherwise stated.
|
|
5.
|
Vodacom
refers to the Group’s interest in Vodacom Group Limited (‘Vodacom’) as
well as its operations, including subsidiaries in South Africa, DRC, Tanzania, Mozambique
and Lesotho.
|
|
6.
|
Quarterly
historical information is provided in a spreadsheet available at https://investors.vodafone.com/reports-information/results-reports-presentations
|
|
7.
|
This
trading update contains references to our and our affiliates’ websites. Information
on any website is not incorporated into this update and should not be considered part of
this update.
|
Forward-looking
statements
This
report contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995
with respect to the Group’s financial condition, results of operations and businesses and certain of the Group’s plans and
objectives.
In
particular, such forward-looking statements include, but are not limited to, statements with respect to: expectations regarding the Group’s
financial condition or results of operations and the guidance for Adjusted EBITDA and Adjusted free cash flow for the financial year
ending 31 March 2022; the Group’s sustainable business strategy and 2025 targets; expectations for the Group’s future performance
generally; expectations regarding the operating environment and market conditions and trends, including customer usage, competitive position
and macroeconomic pressures, price trends and opportunities in specific geographic markets; intentions and expectations regarding the
development, launch and expansion of products, services and technologies, either introduced by Vodafone or by Vodafone in conjunction
with third parties or by third parties independently, including the launch of VodaPay; expectations regarding the Group’s environmental
targets, expectations regarding the integration or performance of current and future investments, associates, joint ventures, non-controlled
interests and newly acquired businesses.
Forward-looking
statements are sometimes, but not always, identified by their use of a date in the future or such words as “will”, “anticipates”,
“could”, “may”, “should”, “expects”, “believes”, “intends”, “plans”
or “targets” (including in their negative form or other variations). By their nature, forward-looking statements are inherently
predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not
occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed
or implied by these forward-looking statements. These factors include, but are not limited to, the following: external cyber-attacks,
insider threats or supplier breaches; general economic and political conditions including as a consequence of the COVID-19 pandemic,
of the jurisdictions in which the Group operates, including as a result of Brexit, and changes to the associated legal, regulatory and
tax environments; increased competition; increased disintermediation; levels of investment in network capacity and the Group’s
ability to deploy new technologies, products and services; rapid changes to existing products and services and the inability of new products
and services to perform in accordance with expectations; the ability of the Group to integrate new technologies, products and services
with existing networks, technologies, products and services; the Group’s ability to generate and grow revenue; a lower than expected
impact of new or existing products, services or technologies on the Group’s future revenue, cost structure and capital expenditure
outlays; slower than expected customer growth, reduced customer retention, reductions or changes in customer spending and increased pricing
pressure; the Group’s ability to extend and expand its spectrum position to support ongoing growth in customer demand for mobile
data services; the Group’s ability to secure the timely delivery of high-quality products from suppliers; loss of suppliers, disruption
of supply chains and greater than anticipated prices of new mobile handsets; changes in the costs to the Group of, or the rates the Group
my charge for, terminations and roaming minutes; the impact of a failure or significant interruption to the Group’s telecommunications,
networks, IT systems or data protection systems; the Group’s ability to realise expected benefits from acquisitions, partnerships,
joint ventures, franchises, brand licences, platform sharing or other arrangements with third parties; acquisitions and divestments of
Group businesses and assets and the pursuit of new, unexpected strategic opportunities; the Group’s ability to integrate acquired
business or assets; the extent of any future write-downs or impairment charges on the Group’s assets, or restructuring charges
incurred as a result of an acquisition or disposition; a developments in the Group’s financial condition, earnings and distributable
funds and other factors that the Board takes into account in determining the level of dividends; the Group’s ability to satisfy
working capital requirements; changes in foreign exchange rates; changes in the regulatory framework in which the Group operates; the
impact of legal or other proceedings against the Group or other companies in the communications industry and changes in statutory tax
rates and profit mix.
Furthermore,
a review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking
statements can be found under “Forward-looking statements” and “Principal risk factors and uncertainties” in
the Group’s annual report for the financial year ended 31 March 2021. The annual report can be found on the Group’s website
(https://investors.vodafone.com/reports-information/latest-annual-results). All subsequent written or oral forward-looking statements
attributable to the Company or any member of the Group or any persons acting on their behalf are expressly qualified in their entirety
by the factors referred to above. No assurances can be given that the forward-looking statements in this document will be realised. Any
forward-looking statements are made of the date of this presentation. Subject to compliance with applicable law and regulations, Vodafone
does not intend to update these forward-looking statements and does not undertake any obligation to do so.
Copyright
© Vodafone Group 2021
-ends-
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorised.
|
VODAFONE
GROUP
|
|
PUBLIC LIMITED
COMPANY
|
|
(Registrant)
|
Dated: July
23, 2021
|
By:
|
/s/
R E S MARTIN
|
|
Name:
Rosemary E S Martin
|
|
Title:
Group General Counsel and Company Secretary
|
Vodafone (NASDAQ:VOD)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Vodafone (NASDAQ:VOD)
Historical Stock Chart
Von Apr 2023 bis Apr 2024