Form 6-K

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Report of Foreign Private Issuer

 

Pursuant to Rules 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

Dated July 20, 2007

 

VODAFONE GROUP

PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

 

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   ü       Form 40-F          

 

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  ü                      

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

 


 

This Report on Form 6-K contains a news release issued by Vodafone Group Plc on, July 19 2007, entitled “INTERIM MANAGEMENT STATEMENT FOR THE FIRST QUARTER”.


 

19 July 2007

 

INTERIM MANAGEMENT STATEMENT FOR THE FIRST QUARTER

 

Vodafone Group Plc (“Vodafone”) today announces its interim management statement for the quarter ended 30 June 2007.

 

The key highlights of the quarter are:

            Group revenue of £8.3 billion, representing 7.5% growth on last year, with organic growth of 4.0%

 

            Group service revenue growth of 8.0% with growth of 4.2% on an organic basis. Organic service revenue growth of 1.4% for Europe and 18.2% for EMAPA

 

            9.1 million proportionate organic net mobile additions for the quarter compared with 4.8 million for the same quarter last year. Total proportionate mobile customer base at 30 June 2007 of 232.0 million

 

            Group mobile customer base for subsidiaries and joint ventures of 200.4 million at 30 June 2007, including 30.8 million in Vodafone Essar in India. Organic net mobile additions of 9.3 million in the quarter

 

            Further strong growth in retail net customer additions of 1.6 million at Verizon Wireless

 

            2.6 million 3G devices added in the quarter, bringing the total 3G device base to 18.5 million. Organic growth in non-messaging data revenue of 32.2%

 

            Vodafone At Home now available in 11 markets and Vodafone Office in 12 markets

 

            Vodafone reiterates its current year outlook with the financial performance for the quarter in line with expectations

 

 

 

 

 

Arun Sarin, Chief Executive, commented:

 

We have made a good start to the financial year, with a strong performance from the EMAPA region offsetting continued challenging markets in Europe. We continue to make progress in the execution of our strategic objectives. Our new Indian business has delivered strong growth in the quarter, with its integration into the Group progressing well. We are reiterating our guidance for the current financial year.”

 


 

 

GROUP REVIEW

 

Following the introduction of the Transparency Rules in the UK in January 2007, which implement the EU Transparency Directive, the Group is providing an interim management statement that provides details of the Group’s performance and financial position, together with any material events, for the quarter.

 

Operating review

 

 

Quarter ended 30 June

 

 

 

 

 

Group revenue

 

2007

 

2006

 

% change

 

 

 

£m

 

£m

 

£

 

Organic

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

8,253

 

7,679

 

7.5

 

4.0

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

5,934

 

5,599

 

6.0

 

1.2

 

Messaging revenue

 

950

 

851

 

11.6

 

9.5

 

Data revenue

 

452

 

334

 

35.3

 

32.2

 

Fixed line operators and DSL revenue

 

372

 

358

 

3.9

 

10.8

 

Other service revenue

 

5

 

-

 

 

 

 

 

Service revenue

 

7,713

 

7,142

 

8.0

 

4.2

 

 

 

Group revenue increased by 7.5% to £8.3 billion. The net impact of acquisitions and disposals, principally due to Turkey and India, contributed 5.3 percentage points to revenue growth offset by 1.8 percentage points from adverse movements in exchange rates.

 

The Europe region recorded organic total revenue growth of 1.1%, whilst the EMAPA region delivered organic growth of 18.7%. The quarter showed continued strong performances in Spain and several of the Group’s emerging market operations, with sustained revenue growth in the UK. The overall competitive environment in Europe remains challenging.

 

Organic voice revenue growth of 1.2% reflects continued strong growth in outgoing voice minutes offset by effective price declines, together with the expected impact from the Group’s European roaming price reductions and the cancellation of top up fees in Italy. Data revenue growth remains strong driven by business services and the increasing penetration of 3G devices, up over 100% since June last year to 18.5 million, supporting strong growth in connectivity revenue.

 

Group mobile customers in subsidiaries and joint ventures increased to 200.4 million at the end of the quarter from 163.0 million at 31 March 2007, with 30.8 million added through Vodafone Essar (formerly Hutchison Essar) in India. On a proportionate basis, the closing customer base reached 232.0 million, with 9.1 million organic proportionate mobile net additions in the quarter.

 

 

Review of strategic objectives

 

The Group continues to focus on executing against its strategic objectives.

 

Revenue stimulation and cost reduction in Europe

 

The Group’s focus in Europe is to drive additional usage and revenue from core voice and messaging services and to reduce the cost base.

 

Outgoing voice revenue growth for the quarter in Europe was 0.5%, up slightly compared with the previous quarter. A 20.3% fall in effective price per minute has been offset by initiatives to stimulate additional usage, with 26.2% growth in total voice usage, including 15.6% growth on a per customer basis. Messaging revenue growth for the quarter was 8.5%, up slightly on the previous quarter principally through successful propositions in Italy.

 

12.6 million Vodafone Passport customers are already benefiting from lower roaming prices. In addition, all European customers are benefiting from the Group having delivered on its commitment to reduce roaming prices by 40% in April 2007 compared with summer 2005.

 

The Group’s cost reduction programmes remain on track. The majority of operating companies have now started outsourcing IT application development and maintenance to EDS and IBM and the Group’s data centre consolidation programme is substantially complete. For the 2008 financial year, the Group expects for the total of the Europe region and common functions mobile capital expenditure to be 10% of mobile revenue and mobile operating expenses to be broadly stable when compared with the 2006 financial year.

 

 

 

 

2


 

Innovate and deliver on our customers’ total communications needs

 

The Group is targeting an additional 10% of revenue from its total communications initiatives over the next three years.

 

Fixed location pricing plans have now been launched in six markets for consumers and 12 markets for business customers. The Group now has 3.5 million Vodafone At Home customers on fixed location tariffs and 2.5 million Vodafone Office customers.

 

Vodafone is now offering fixed consumer broadband services through its mobile operations in ten markets, with four markets launching services since the end of May. In addition, Arcor in Germany had 2.2 million DSL customers at 30 June 2007, up 47% compared with June last year.

 

During the quarter, Germany, Italy, the Netherlands and the UK refreshed their mobile internet offering and launched fixed price browsing tariffs to encourage greater data usage, benefiting from partnerships with industry leading partners such as Google, YouTube, MySpace and eBay.

 

Since July 2007, the Group’s European customers have been able to benefit from lower data roaming charges, with a daily fixed rate of €12 for unlimited usage.

 

Overall, Group data revenues have increased by 32.2% on an organic basis compared with the same quarter last year.

 

Deliver strong growth in emerging markets

 

Further strong performances have been delivered during the quarter in the Group’s emerging markets, with organic service revenue growth of 42.8% in Egypt, 26.8% in Romania and 20.6% from Vodacom.

 

The Group’s more recent acquisitions in India and Turkey have delivered strong year on year total revenue growth in local currency of 50% and 32% respectively, calculated by assuming the Group owned these businesses for the whole of both quarters.

 

Actively manage our portfolio to maximise returns

 

On 8 May 2007, the Group completed its acquisition of companies with interests in Vodafone Essar in India for a cash consideration of US$10.9 billion and acquired debt of approximately US$2 billion. The Group has also granted Essar options to sell all or part of its shareholding for a maximum consideration of US$5 billion between the third and fourth anniversary of the completion of the acquisition.

 

Net debt at 30 June 2007 has increased significantly since 31 March 2007 with the contribution from free cash flow generated in the quarter more than offset by the increase in net debt of approximately £9 billion resulting from the transactions and agreements in India.

 

On 18 July 2007, the Group received $1.3 billion in respect of a 4.99% stake in Bharti Airtel following an irrevocable agreement by a Bharti group company on 9 May 2007 to purchase 5.60% of Bharti Airtel by November 2008.

 

 

Outlook

 

The overall performance for the quarter is consistent with expectations and the Group is therefore reiterating its outlook statement for the year ending 31 March 2008. The Group’s expectations for average foreign exchange rates for the 2008 financial year are unchanged from those announced on 29 May 2007.

 

Group revenue is expected to be in the range of £33.3 billion to £34.1 billion. Adjusted operating profit is expected to be in the range of £9.3 billion to £9.8 billion, with the Group EBITDA margin lower year on year. Total depreciation and amortisation charges are anticipated to be around £5.8 billion to £5.9 billion, higher than the 2007 financial year, primarily as a result of the Vodafone Essar acquisition.

 

The Group expects capitalised fixed asset additions to be in the range of £4.7 billion to £5.1 billion, including in excess of £1.0 billion in India.

 

Reported free cash flow is expected to be in the range of £4.0 billion to £4.5 billion. This is after taking into account £0.6 billion of expected tax payments and associated interest in respect of the potential settlement of a number of long standing tax issues, a net cash outflow of approximately £0.8 billion anticipated in respect of India and £0.5 billion from deferred payments and the reversal of certain timing differences that benefited the 2007 financial year. The outlook for free cash flow is stated including the impact of known spectrum or licence payments only.

 

3


 

REGIONAL RESULTS

 

Europe

 

 

Quarter ended 30 June

 

           % Change

 

 

 

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

£m

 

£m

 

£

 

Organic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

6,219

 

6,220

 

-

 

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

4,315

 

4,469

 

(3.4

)

(2.4

)

 

 

Messaging revenue

 

764

 

711

 

7.5

 

8.5

 

 

 

Data revenue

 

398

 

312

 

27.6

 

28.9

 

 

 

Fixed line operators and DSL revenue

 

368

 

340

 

8.2

 

9.7

 

 

 

Other service revenue

 

5

 

-

 

 

 

 

 

 

 

Service revenue

 

5,850

 

5,832

 

0.3

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended 30 June

 

 

 

 

 

 

 

 

 

2007

 

2006

 

           % Change

 

Service revenue

 

£m

 

£m

 

£

 

Organic

 

Underlying(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

1,238

 

1,339

 

(7.5

)

(6.3

)

(3.0

)

Italy

 

1,005

 

1,051

 

(4.4

)

(3.1

)

0.4

 

Spain

 

1,110

 

1,001

 

10.9

 

12.5

 

17.9

 

UK

 

1,209

 

1,153

 

4.9

 

4.9

 

5.6

 

Arcor

 

375

 

346

 

8.4

 

9.9

 

 

 

Other

 

1,028

 

1,036

 

(0.8

)

0.6

 

4.7

 

Eliminations

 

(115

)

(94

)

 

 

 

 

 

 

 

 

5,850

 

5,832

 

0.3

 

1.4

 

4.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Key performance indicators

 

Germany

 

Italy

 

Spain

 

UK

 

Other

 

Europe

 

Organic growth

 

%

 

%

 

%

 

%

 

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing mobile customers

 

7.4

 

17.3

 

8.8

 

9.0

 

8.3

 

10.0

 

Mobile voice usage

 

30.0

 

16.2

 

22.2

 

24.4

 

9.0

 

20.5

 

 

(1) Estimated impact of revenue arrangements now presented net of associated direct costs and termination rates reductions

 

 

Customers

 

The Europe region recorded 2.3 million net customer additions in the quarter compared with 0.9 million in the same quarter last year, with year on year growth in both contract and prepaid net additions.

 

Strong net additions in Italy and the UK reflect changes in commercial strategies implemented after the June quarter last year. In Germany, the increase in net additions is partly attributable to wholesale contract arrangements started in the quarter.

 

The total customer base reached 103.5 million at the end of the quarter, up 10.0% on an organic basis since the same quarter last year.

 

Usage

 

Total voice usage increased by 20.5% on an organic basis compared with the same quarter last year. Outgoing call volumes increased by 26.2% on an organic basis resulting from a 9.2% growth in average customers and a 15.6% growth in outgoing usage per customer, reflecting similar overall trends to the previous quarter.

 

Total outgoing voice usage growth remained strong in the region’s major markets, with improved growth in Italy from various successful commercial initiatives offsetting lower growth in Spain arising from lower promotional activity than in the prior year.

 

Revenue

 

Organic service revenue growth for the quarter was 1.4%, compared with 1.9% growth for the previous quarter. The lower growth rate principally reflects the impact in the current quarter from the cancellation of top up fees in Italy and the Group’s reduction of European roaming prices by 40% between summer 2005 and April 2007, with particular impact this quarter in Germany and the UK, offsetting other underlying improvements. Spain continued to sustain strong local currency growth in service revenue, primarily through the year on year increase in the customer base.

 

4


 

Voice revenue

 

Voice revenue declined by 2.4% on an organic basis compared with the same quarter last year, having declined 0.9% in the previous quarter. Outgoing voice revenue remained broadly stable year on year for the region, with the negative impact in Italy from the cancellation of top up fees, offset by successful commercial initiatives in Italy and improved trends in Spain and the UK. Incoming voice revenue continues to decline, with a 3.8% fall principally due to the impact from termination rate reductions in Germany together with an additional impact this quarter from termination rate reductions in Spain. Roaming and international visitor revenues declined 11.9% year on year, as expected, from the impact of the Group’s initiatives on retail and wholesale roaming.

 

Messaging revenue

 

The Europe region recorded 8.5% organic growth in messaging revenue compared with the same quarter last year, slightly higher than the growth recorded in the previous quarter. Strong growth in messaging usage and revenue was recorded in Italy from the continued success of propositions launched in the previous quarters.

 

Data revenue

 

Data revenue growth remained strong, increasing by 28.9% on an organic basis, similar to the growth in the previous quarter. Data revenue continues to benefit from growth in business services and the increasing penetration of 3G devices, which have nearly doubled since June 2006 to 17.1 million. Handheld business devices increased by 87% since June last year, with Vodafone Mobile Connect data cards up 70%. Increasing device penetration has improved significantly the rate of growth in the UK and Italy, offsetting lower but nonetheless strong growth in Germany and Spain.

 

Fixed line operator and DSL revenue

 

Arcor generated 9.9% local currency growth in service revenue compared with the same quarter last year, driven by a 47% year on year increase in DSL customers to 2.2 million.

 

Associates and investments

 

The Group’s interests in France are now managed by the Europe region. SFR recorded 31,000 proportionate net additions in the quarter, bringing the proportionate mobile customer base to 7.9 million. Vivendi will report further financial information for SFR on 25 July 2007.

 

5


 

EMAPA

 

 

Quarter ended 30 June

 

 

 

 

 

 

 

 

 

2007

 

2006

 

        % Change

 

 

 

 

 

£m

 

£m

 

£

 

Organic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

2,021

 

1,436

 

40.7

 

18.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

1,638

 

1,144

 

43.2

 

17.0

 

 

 

Messaging revenue

 

189

 

142

 

33.1

 

15.6

 

 

 

Data revenue

 

55

 

25

 

120.0

 

64.5

 

 

 

Fixed line operators and DSL revenue(1)

 

4

 

18

 

(77.8

) 

-

 

 

 

Service revenue

 

1,886

 

1,329

 

41.9

 

18.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended 30 June

 

 

 

 

 

 

 

 

 

2007

 

2006

 

        % Change

 

 

 

Service revenue

 

£m

 

£m

 

£

 

Organic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eastern Europe

 

714

 

477

 

49.7

 

12.9

 

 

 

Middle East, Africa & Asia

 

837

 

559

 

49.7

 

28.9

 

 

 

Pacific

 

335

 

293

 

14.3

 

9.5

 

 

 

 

 

1,886

 

1,329

 

41.9

 

18.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key performance indicators

 

Eastern
Europe

 

Middle East,
Africa &
Asia

 

Pacific

 

EMAPA

 

 

 

Organic growth

 

%

 

%

 

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing mobile customers

 

24.2

 

39.9

 

8.9

 

29.2

 

 

 

Mobile voice usage

 

25.8

 

45.9

 

14.4

 

32.1

 

 

 

 

(1) Includes the Group’s joint venture interest in the fixed line operations of Bharti Airtel in the prior year

 

The EMAPA region recorded 6.9 million organic customer net additions in the quarter compared with 2.9 million in the same quarter last year, with India and Turkey accounting for 3.3 million of the year on year increase. Customer growth remained particularly strong in Egypt and South Africa.

 

The total customer base reached 96.9 million compared with 53.5 million at June last year, including a net additional 28.4 million customers in India year on year.

 

Reported revenue growth of 40.7% included 27.9 percentage points benefit from acquisitions and disposals, primarily relating to the timing of the acquisitions in Turkey and India, offset by 5.9 percentage points adverse impact from exchange rate movements, particularly in South Africa.

 

Organic growth in service revenue in the quarter of 18.2% compares with 19.6% in the previous quarter, primarily reflecting an incremental impact from termination rate reductions in the quarter across several markets. Customer growth remains the key driver of the organic increase in service revenue, with average customers up 27.2% on an organic basis.

 

Eastern Europe

 

Organic growth in service revenue of 12.9% in Eastern Europe compared with 16.3% growth in the previous quarter, with the inclusion of the Czech Republic in the organic calculation for the first time and an incremental impact from termination rate reductions accounting for substantially all of the difference.

 

The principal driver of the organic growth in Eastern Europe continued to be Romania, where the customer base has reached 8.2 million. Local currency service revenue growth in Romania was 26.8%, similar to growth in the previous quarter, with 22.8% growth in average customers and 3.3% growth in ARPU from a focus on higher value contract customers.

 

Customer growth in Turkey remains strong with 1.0 million net additions in the quarter following the rebranding of the business to Vodafone on 31 March 2007, bringing the closing customer base to 14.9 million, up 32.0% on the same quarter last year. Year on year total revenue growth for the quarter was 32%, assuming the Group owned the business for the whole of both quarters.

 

Middle East, Africa and Asia

 

Organic service revenue growth in Middle East, Africa and Asia was 28.9%, similar to growth in the previous quarter, with 37.3% organic growth in average customers.

 

Egypt delivered local currency growth in service revenue of 42.8%, compared with 35.9% growth in the previous quarter. Organic customer net additions were 1.0 million, with a positive reaction to the introduction of lifetime validity for prepaid customers. Average customers have increased by 50.0% compared with the same quarter last year.

 

 

6


 

Vodacom Group, the Group’s joint venture with principal operations in South Africa, reported local currency growth in service revenue of 20.6%, slightly lower than the previous quarter reflecting lower average customer growth as market penetration rises. The Group’s share of net additions was 1.1 million, bringing the share of the closing customer base to 16.2 million. Data revenue growth remains very strong at around 70% in local currency, with rapid growth in mobile broadband connectivity devices.

 

The Group’s new business in India has registered 3.0 million customer net additions from completion of the acquisition until the end of the quarter, bringing the closing customer base to 30.8 million, up 75% on June last year. Year on year total revenue growth for the quarter was 50%, assuming the Group owned the business for the whole of both quarters.

 

Pacific

 

The Pacific area delivered 9.5% organic growth in service revenue, similar to the previous quarter, with improved underlying trends from a focus on higher value contract customers in Australia and non-voice services in New Zealand, offset by an incremental impact from termination rate reductions in the quarter in both countries.

 

Associates and investments

 

Verizon Wireless

 

In the US, Verizon Wireless maintained strong growth in retail customers, with 1.6 million retail net additions, the same as the previous quarter. Total net customer additions were 1.3 million, after 0.3 million reseller net disconnections, with the Group’s proportionate share at 0.6 million.

 

The closing proportionate customer base reached 27.9 million, up 13.2% on June last year. Verizon Communications will report its June quarter results, including those of Verizon Wireless, on 30 July 2007.

 

Other

 

The Group’s investments registered 0.9 million proportionate organic customers in the quarter.

 

 

- ends-

 

 

For further information:

 

 

 

 

 

Vodafone Group

 

 

 

 

 

Investor Relations

 

Media Relations

 

 

 

Tel: +44 (0) 1635 664447

 

Tel: +44 (0) 1635 664444

 

 

Notes to editors:

 

1.

 

Vodafone, the Vodafone logos, Vodafone live!, Vodafone At Home, Vodafone Office, Vodafone Passport and Vodafone Mobile Connect are trademarks of the Vodafone Group.

 

 

 

2.

 

References to ‘the previous quarter’ are to the quarter ended 31 March 2007 unless otherwise stated.

 

 

 

3.

 

Eliminations within the Europe results table represent intercompany revenue between the segments within the Europe region.

 

 

 

4.

 

The basis of the calculation for organic growth is included on page 159 of the Group’s Annual Report for the year ended 31 March 2007. For organic revenue growth the main adjustments within the EMAPA region are for the acquisitions of Telsim in Turkey and Vodafone Essar in India, and the change in status of Vodafone’s interest in Bharti Airtel to an investment, as well as foreign exchange movements. For the Europe region, the principal adjustments are for foreign exchange movements.

 

 

 

5.

 

The Group’s outlook for the year ending 31 March 2008 is contained in Vodafone’s Preliminary Results Announcement for the year ended 31 March 2007.

 

FORWARD-LOOKING STATEMENTS

 

This press release contains forward-looking statements which are subject to risks and uncertainties because they relate to future events. In particular, such forward-looking statements include statements with respect to Vodafone’s expectations as to expected savings from cost reduction initiatives, including the IT AD&M programme; expectations as to levels of capital expenditure and operating expenditure; targeted revenue from the Group’s total communications initiatives; and the Group’s expectations for revenue, adjusted operating profit, capitalised fixed asset additions and free cash flow for the 2008 financial year contained within the outlook statement on page 3 of this document. Some of the factors which may cause actual results to differ from these forward-looking statements can be found by referring to the information under the headings “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” in Vodafone Group Plc’s Annual Report for the year ended 31 March 2007. The Annual Report can be found on our website (www.vodafone.com).

 

7


KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES

 

MOBILE CUSTOMERS(1) – 1 APRIL 2007 TO 30 JUNE 2007

 

COUNTRY (in thousands)

AT 1 APR
2007

NET
ADDITIONS

OTHER
MOVEMENTS(2)

AT 30 JUN
2007

PREPAID(3)

Europe:

 

 

 

 

 

Germany

30,818

800

-

31,618

54.4%

Italy

21,034

729

-

21,763

91.9%

Spain

14,893

286

-

15,179

44.2%

UK

17,411

236

-

17,647

60.3%

 

84,156

2,051

-

86,207

65.3%

Other Europe:

 

 

 

 

 

Albania

956

48

-

1,004

96.3%

Greece

5,057

180

-

5,237

69.7%

Ireland

2,177

10

-

2,187

72.9%

Malta

186

2

-

188

89.5%

Netherlands

3,880

10

-

3,890

44.1%

Portugal

4,751

24

-

4,775

79.3%

 

17,007

274

-

17,281

68.8%

Europe

101,163

2,325

-

103,488

65.8%

EMAPA:

 

 

 

 

 

Eastern Europe:

 

 

 

 

 

Czech Republic

2,475

50

-

2,525

47.4%

Romania

7,954

269

-

8,223

65.9%

Hungary

2,163

1

-

2,164

58.9%

Turkey

13,900

1,025

-

14,925

89.1%

Poland

2,483

50

-

2,533

58.8%

 

28,975

1,395

-

30,370

70.6%

Middle East, Africa & Asia:

 

 

 

 

 

Egypt

9,652

975

356

10,983

94.5%

Kenya

2,433

332

-

2,765

98.6%

South Africa(4)

15,075

1,129

-

16,204

89.4%

India

-

3,049

27,703

30,752

87.9%

 

27,160

5,485

28,059

60,704

90.3%

Pacific:

 

 

 

 

 

Australia

3,367

16

-

3,383

72.9%

New Zealand

2,244

24

-

2,268

75.2%

Fiji

139

7

-

146

95.4%

 

5,750

47

-

5,797

74.9%

EMAPA

61,885

6,927

28,059

96,871

83.3%

Group customers

163,048

9,252

28,059

200,359

75.2%

 

 

 

 

 

 

Reconciliation to proportionate:

 

 

 

 

 

Minority interests in above:

 

 

 

 

 

Europe

(7)

-

-

(7)

 

EMAPA

(5,897)

(1,617)

(9,346)

(16,860)

 

 

(5,904)

(1,617)

(9,346)

(16,867)

 

Associates & investments:

 

 

 

 

 

United States

27,322

602

-

27,924

5.3%

Other

21,927

879

(2,185)

20,621

79.0%

 

49,249

1,481

(2,185)

48,545

 

Proportionate customers(5)

206,393

9,116

16,528

232,037

71.1%

 

 

 

 

 

 

Europe

109,032

2,356

-

111,388

65.8%

EMAPA

97,361

6,760

16,528

120,649

72.1%

 

Notes:

(1)

Group customers are now presented on a controlled (fully consolidated) and jointly controlled (proportionately consolidated) basis in accordance with the Group’s current segments.

(2)

Other movements principally relate to the acquisition of Vodafone Essar.

(3)

Prepaid customer percentages are calculated on a venture basis. At 30 June 2007, there were 691.9 million venture customers.

(4)

South Africa refers to the Group’s interests in Vodacom Group (Pty) Limited and its subsidiaries, including those located outside of South Africa.

(5)

Proportionate customers are based on equity interests as at 30 June 2007. The calculation of proportionate customers for Vodafone Essar also assumes the exercise of call options that could increase the Group’s equity interest from 51.95% to 66.98%.  These call options can only be exercised in accordance with Indian law prevailing at the time of exercise.

 

8


 

KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES

 

MOBILE CUSTOMER CHURN

 

 

 

ANNUALISED CHURN INFORMATION IN THE QUARTER ENDED

COUNTRY

 

30 JUN
2006

30 SEP
2006

31 DEC
2006

31 MAR
2007

30 JUN
2007

Germany(1)

Total

20.7%

22.1%

20.1%

24.2%

20.7%

 

Contract

14.6%

13.5%

15.7%

14.9%

14.0%

 

Prepaid

26.0%

29.5%

23.9%

31.9%

26.4%

Italy

Total

20.8%

21.7%

19.4%

20.6%

18.1%

 

Contract

17.2%

13.6%

14.8%

14.1%

15.9%

 

Prepaid

21.1%

22.4%

19.8%

21.2%

18.3%

Spain(2)

Total

20.5%

37.0%

23.4%

24.7%

22.4%

 

Contract

12.3%

13.4%

15.3%

16.6%

14.8%

 

Prepaid

28.9%

62.5%

32.8%

34.5%

31.7%

UK

Total

32.8%

37.6%

35.4%

29.8%

34.1%

 

Contract

20.1%

18.8%

17.9%

17.4%

15.9%

 

Prepaid

40.9%

49.9%

47.0%

37.9%

46.0%

 

Notes:

(1)     The customer churn for Germany in the quarter ended 31 December 2006 benefited from a regulatory driven change in the prepaid disconnection policy, which reduced disconnections by 291,000 in the quarter. The underlying prepaid customer churn, excluding this change, was 31.1% and total churn was 24.0%.

(2)     The customer churn for Spain in the quarter ended 30 September 2006 includes the effect of 584,000 disconnections following a change in the application of disconnection policies.  The underlying customer churn, excluding these disconnections, was 20.1%.

 

 

3G DEVICES(1)

 

 

QUARTER ENDED 30 JUNE 2007

COUNTRY (in thousands)

AT 31 MAR
2007

NET
ADDITIONS

AT 30 JUN
2007

 

 

 

 

Germany

3,720

476

4,196

Italy

3,762

330

4,092

Spain

2,890

688

3,578

UK

1,938

685

2,623

Other Europe

2,353

236

2,589

Europe

14,663

2,415

17,078

EMAPA

1,205

227

1,432

Group

15,868

2,642

18,510

 

 

 

 

Consumer devices

14,246

2,460

16,706

Business devices

1,622

182

1,804

Group

15,868

2,642

18,510

 

Note:

(1)     3G devices only include those in the Group’s subsidiary and joint venture undertakings. At 30 June 2007, there were an additional 3.3 million (31 March 2007: 3.0 million) registered Vodafone live! with 3G and Vodafone Mobile Connect 3G/GPRS data card venture customers in the Group’s associated undertakings.

 

9


 

KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES

 

MOBILE VOICE USAGE VOLUMES

 

 

TOTAL VOICE MINUTES(1) IN THE QUARTER ENDED

COUNTRY (in millions)

3O JUN
2006

30 SEP
2006

31 DEC
2006

31 MAR
2007

30 JUN
2007

 

 

 

 

 

 

Europe:

 

 

 

 

 

Germany

7,614

7,979

8,650

9,230

9,897

Italy

7,687

8,050

8,256

8,439

8,932

Spain

6,978

7,533

7,655

8,248

8,530

UK

7,207

7,579

8,160

8,790

8,963

Albania

148

166

160

167

196

Greece

2,075

2,216

2,113

1,985

2,168

Ireland

1,380

1,422

1,462

1,420

1,490

Malta

49

55

50

48

55

Netherlands

1,820

1,711

1,868

1,900

2,006

Portugal

1,472

1,606

1,586

1,612

1,657

Europe

36,430

38,317

39,960

41,839

43,894

 

 

 

 

 

 

EMAPA:

 

 

 

 

 

Eastern Europe:

 

 

 

 

 

Czech Republic

901

868

919

916

985

Hungary

948

980

1,030

1,030

1,110

Romania(2)

1,873

2,059

2,231

2,339

2,540

Turkey(3)

2,494

6,451

5,781

6,224

6,583

Joint Venture

575

641

717

681

769

 

6,791

10,999

10,678

11,190

11,987

Middle East, Africa & Asia:

 

 

 

 

 

Egypt

2,869

3,462

3,670

4,156

4,794

India(4)

-

-

-

-

26,713

Joint Ventures

5,160

5,713

6,638

5,781

3,016

 

8,029

9,175

10,308

9,937

34,523

Pacific:

 

 

 

 

 

Australia

2,006

2,141

2,238

2,222

2,179

New Zealand

597

597

672

771

793

Joint Venture

28

33

34

32

38

 

2,631

2,771

2,944

3,025

3,010

EMAPA

17,451

22,945

23,930

24,152

49,520

Group

53,881

61,262

63,890

65,991

93,414

 

Notes:

(1)     The total voice minute information presented in the table above represents network minutes, or the volume of minutes handled by each local network, and includes incoming, outgoing and visitor calls. The voice minute information in respect of Germany, Czech Republic and New Zealand reflects billed minutes, under which calls are rounded up to the nearest minute under certain tariffs.

(2)     During the quarter ended 31 December 2006, Vodafone Romania restated usage volumes for all quarters in the prior year. Previous volumes were billed minutes and this has now been restated to network minutes.

(3)     On 24 May 2006, the Group acquired substantially all the assets and business of Telsim Mobil Telekomunikasyon Hizmetleri in Turkey. The quarter ended 30 June 2006 has been restated to include voice minutes from the acquisition date.

(4)     Vodafone Essar is included from the date of acquisition.

 

10


 

KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES

 

MOBILE NON-VOICE SERVICE REVENUE AS A PERCENTAGE OF SERVICE REVENUE(1)

 

 

QUARTER ENDED 30 JUNE 2007

COUNTRY

MESSAGING

DATA

TOTAL

 

 

 

 

Germany

14.1%

10.2%

24.3%

Italy

15.7%

5.5%

21.2%

Spain

8.9%

7.2%

16.1%

UK

17.6%

7.3%

24.9%

Europe

13.9%

7.2%

21.1%

EMAPA

10.1%

2.9%

13.0%

Group

12.9%

6.1%

19.0%

 

 

 

 

HISTORIC MOBILE NON-VOICE SERVICE REVENUE INFORMATION(1)

 

 

NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUE IN THE QUARTER ENDED

COUNTRY

30 JUN
2006

30 SEP
2006

31 DEC
2006

31 MAR
2007

30 JUN
2007

 

 

 

 

 

 

Germany

21.2%

21.6%

22.9%

24.4%

24.3%

Italy

17.3%

17.5%

18.7%

20.4%

21.2%

Spain

15.7%

14.7%

15.3%

16.0%

16.1%

UK

20.9%

21.7%

23.2%

24.3%

24.9%

Europe

18.5%

18.6%

19.9%

21.0%

21.1%

EMAPA

12.7%

14.5%

15.2%

12.0%

13.0%

Group

17.4%

17.8%

18.9%

18.9%

19.0%

 

Note:

(1)    Service revenue from the mobile telecommunications businesses excludes fixed line operators and DSL revenue.

 

11


 

KEY PERFORMANCE INDICATORS - MOBILE TELECOMMUNICATIONS BUSINESSES

 

AVERAGE MONTHLY MOBILE REVENUE PER USER IN THE QUARTER

 

COUNTRY

 

30 JUN
2006

30 SEP
2006

31 DEC
2006

31 MAR
2007

30 JUN
2007

 

 

 

 

 

 

 

Europe:

 

 

 

 

 

 

Germany

Total

22.1

22.4

20.9

19.3

19.5

(EUR)

Contract

38.4

39.0

36.7

34.7

34.9

 

Prepaid

7.6

7.6

7.0

6.1

6.2

Italy

Total

27.6

27.1

25.8

23.4

23.2

(EUR)

Contract

72.6

68.0

71.1

69.5

69.8

 

Prepaid

23.3

23.2

21.5

19.1

18.8

Spain

Total

35.3

36.4

35.3

33.8

36.3

(EUR)

Contract

54.8

55.2

51.3

48.9

52.0

 

Prepaid

15.0

15.4

16.0

15.0

16.4

UK

Total

23.7

24.5

23.6

22.7

23.1

(GBP)

Contract

45.2

46.5

43.7

43.4

43.5

 

Prepaid

8.9

9.4

9.5

8.6

8.9

Albania

Total

2,122

2,311

2,086

1,868

1,844

(ALL)

Contract

17,240

17,941

16,329

14,612

14,403

 

Prepaid

1,606

1,782

1,605

1,419

1,366

Greece

Total

31.1

31.0

27.6

24.7

25.5

(EUR)

Contract

65.6

66.8

61.6

56.5

60.0

 

Prepaid

13.7

13.4

11.4

10.1

10.2

Ireland

Total

48.8

46.9

45.6

44.6

45.4

(EUR)

Contract

102.8

99.4

94.5

92.5

94.3

 

Prepaid

29.3

28.0

27.9

27.2

27.1

Malta(1)

Total

14.7

16.6

12.6

12.0

14.0

(MTL)

Contract

39.2

38.2

36.0

34.7

36.3

 

Prepaid

11.2

13.4

9.2

8.5

10.5

Netherlands

Total

35.7

36.9

31.7

36.1

37.9

(EUR)

Contract

63.5

64.6

52.0

57.8

59.7

 

Prepaid

10.1

10.4

9.8

9.8

10.6

Portugal

Total

23.5

24.4

22.8

22.1

22.4

(EUR)

Contract

62.2

62.8

57.8

54.2

54.9

 

Prepaid

13.0

13.9

13.2

13.2

13.2

 

 

 

 

 

 

 

EMAPA Subsidiaries:

 

 

 

 

 

Australia

Total

49.4

52.4

54.0

51.3

50.5

(AUD)

Contract

92.7

96.4

98.8

97.1

96.2

 

Prepaid

33.9

36.2

37.2

34.1

33.0

Czech Republic

Total

674

670

658

613

635

(CZK)

Contract

978

966

946

897

916

 

Prepaid

331

334

331

295

320

Egypt

Total

79.4

88.1

79.4

75.0

75.6

(EGP)

Contract

292.1

309.7

289.9

295.8

308.8

 

Prepaid

57.1

66.7

61.4

59.1

60.4

Hungary

Total

5,066

5,339

5,171

4,749

4,935

(HUF)

Contract

9,129

9,097

8,529

7,847

8,010

 

Prepaid

3,125

3,359

3,250

2,839

2,873

India

Total

N/A

N/A

N/A

N/A

N/A

(INR)

Contract

N/A

N/A

N/A

N/A

N/A

 

Prepaid

N/A

N/A

N/A

N/A

N/A

New Zealand

Total

46.6

46.6

50.7

49.3

47.1

(NZD)

Contract

126.1

125.3

128.9

122.8

117.2

 

Prepaid

23.2

22.5

23.7

23.4

21.4

Turkey

Total

N/A

16.5

14.4

14.4

15.7

(TRY)

Contract

N/A

31.4

28.2

28.7

29.2

 

Prepaid

N/A

14.8

12.9

12.9

14.1

Romania

Total

15.2

15.9

15.6

14.0

15.7

(USD)

Contract

29.5

30.8

30.6

27.1

31.2

 

Prepaid

6.7

7.3

7.0

6.1

6.6

 

Notes:

(1)          During the quarter ended 30 June 2007, Vodafone Malta restated previously published prepaid and contract average monthly mobile revenue per user to reflect a revised analysis of historic service revenue.

(2)          For acquired operations, average monthly mobile revenue per user is published with effect from the quarter following each acquisition.

 

12


 

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 20, 2007

By:

/s/ S R SCOTT

 

Name:

Stephen R. Scott

 

Title:

Group General Counsel and Company

 

              Secretary