Takings for first quarter down 17% in Italy, 10% in Spain, 5% in Germany and 4% in UK
Vodafone has said it does not expect any let up in the pressures weighing on its business, having reported first-quarter results hit by regulation and recession across Europe.
The British group, which has been battling price cuts ordered by the regulator, economic pressures and competition throughout its European markets, said on Friday it expected the next three months to follow the same trends after reporting yet another sharp drop in its key revenue measurement.
With competition increasing in its once-reliable markets of Germany and Britain, and with Italy and Spain posting double-digit revenue falls, Vodafone posted a 3.5% drop in its key organic service revenue figure in the three months ending in June.
The fall in the measure was based on revenue coming from ongoing services, stripping out the impact of one-off costs such as handset sales.
It was a slight improvement on the record 4.2% fall in the fourth quarter. But it is still a sharp drop for a group that was posting growth only 12 months ago.
"Conditions in Europe remain challenging in northern and central and southern Europe," chief executive Vittorio Colao said.
The falls across the core region of Europe took the shine off some of Vodafone's better-performing businesses, including India which showed signs of stability and an increasing demand for internet services after years of a ferocious price war.
"Vodafone's first quarter was in line with consensus expectations but the detail points to a further deterioration in revenue trends in the core European businesses," analysts at Espirito Santo said.
The tougher competition in Germany has surprised investors who only last year saw the market as a haven of growth and high margins.
Vodafone, which has 454 million mobile customers globally, reported a worse than expected 5.1% drop in service revenue in Germany, its biggest European market, and a 4.5% fall in Britain.
Spain, where Vodafone has struggled throughout the downturn, was down 10.6% and Italy down 17.6%, as rivals stepped up the competition and customers saved money by making fewer calls and retaining older handsets. Reported by guardian.co.uk 1 day ago.
Vodafone has said it does not expect any let up in the pressures weighing on its business, having reported first-quarter results hit by regulation and recession across Europe.
The British group, which has been battling price cuts ordered by the regulator, economic pressures and competition throughout its European markets, said on Friday it expected the next three months to follow the same trends after reporting yet another sharp drop in its key revenue measurement.
With competition increasing in its once-reliable markets of Germany and Britain, and with Italy and Spain posting double-digit revenue falls, Vodafone posted a 3.5% drop in its key organic service revenue figure in the three months ending in June.
The fall in the measure was based on revenue coming from ongoing services, stripping out the impact of one-off costs such as handset sales.
It was a slight improvement on the record 4.2% fall in the fourth quarter. But it is still a sharp drop for a group that was posting growth only 12 months ago.
"Conditions in Europe remain challenging in northern and central and southern Europe," chief executive Vittorio Colao said.
The falls across the core region of Europe took the shine off some of Vodafone's better-performing businesses, including India which showed signs of stability and an increasing demand for internet services after years of a ferocious price war.
"Vodafone's first quarter was in line with consensus expectations but the detail points to a further deterioration in revenue trends in the core European businesses," analysts at Espirito Santo said.
The tougher competition in Germany has surprised investors who only last year saw the market as a haven of growth and high margins.
Vodafone, which has 454 million mobile customers globally, reported a worse than expected 5.1% drop in service revenue in Germany, its biggest European market, and a 4.5% fall in Britain.
Spain, where Vodafone has struggled throughout the downturn, was down 10.6% and Italy down 17.6%, as rivals stepped up the competition and customers saved money by making fewer calls and retaining older handsets. Reported by guardian.co.uk 1 day ago.
