Menu
Vodafone increases network investments to give its European fortunes a boost

Vodafone increases network investments to give its European fortunes a boost

Vodafone's service revenue in Europe is dropping, but the company expects a return to economic growth there

Vodafone now plans to invest £7 billion (US$11.1 billion) in network and service improvements to turn around its sagging service revenue in Europe, the mobile operator said as it announced its results for six months to Sept. 30.

Vodafone's group revenue for the six months to Sept. 30 was £22 billion, down 3.2 percent year on year excluding the effects of acquisitions, discontinued operations and exchange rate fluctuations. Net income was £18 billion, thanks in large part to a £14.2 billion income tax credit. For the corresponding period a year earlier, Vodafone reported a £2 billion net loss.

In general, Vodafone performed well in emerging countries, driven a higher smartphone penetration and data usage, but the situation in Europe remained very tough, it said in a statement. For example, Vodafone's service revenue in Italy dropped by 16.7 percent excluding acquisitions, discontinued operations and exchange rate fluctuations, and in Spain it dropped by 13.4 percent on the same basis, while the service revenue in India grew by 13.5 percent.

However, Vodafone was encouraged by an expected return to economic growth in Europe over the next two years. The economic outlook for Europe, coupled with the transition to 4G, makes this the right time for Vodafone to pursue further development and differentiation, it said.

Vodafone's plan is to invest £7 billion in mobile and fixed networks over the next two financial years. The operator will use the funds to accelerate its roll out of LTE. Small cells and Wi-Fi will also be used to improve network performance, Vodafone said. The operator will increase its DSL and fiber footprint in Europe, and in the enterprise sector it will invest in a build-out of its hosting capabilities. Just like many other operators it is investing in machine-to-machine services, as well.

The last six months have been a very busy time for Vodafone, which closed the acquisition of Kabel Deutschland and announced it was selling its share in Verizon Wireless for US$130 billion.

Send news tips and comments to mikael_ricknas@idg.com

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersVodafone Groupfinancial resultsinvestments

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments