Vodafone Ireland gains subscribers

Vodafone Ireland said it gained an additional 106,816 customers during the third quarter, giving it a total of 2

Vodafone Ireland said it gained an additional 106,816 customers during the third quarter, giving it a total of 2.12 million mobile subscribers.

The company said it had 177.607 fixed line and DSL business customers at the end of three month period under review and that it also acquired new post-pay customers along with its acquisition of BT’s 87,000 retail base.

Vodafone Ireland now has over 251,000 broadband customers and a 24 per cent share of combined mobile broadband and DSL subscriptions.

The operator remains the biggest provider of prepay mobile services in Ireland with 1.46 million customers, despite a decline in the number of customers. The firm said its prepay base has been affected by the large numbers of people leaving Ireland in recent months

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The company’s total telecoms base amounted to 2.29 million at the end of the third quarter.

Vodafone customers increased their voice minutes of use by 1.2 per cent to 257 per customer and increased the number of texts they sent by 6.4 per cent to 183 per customer, compared to the previous quarter.

Total texts sent in the quarter increased by 21.4 per cent to 1.16 billion while total voice minutes declined by 1.8 per cent to 1.59 billion compared to the same quarter the previous year. Average mobile blended monthly ARPU decreased by 8.7 per cent to €38.80 in the same period, the company said.

Vodafone's parent, which is the world's largest mobile phone service operator by revenue, said today it is to step up cost cutting after a successful start to a programme which boosted cashflow in the first half of the year.

The Vodafone Group reported first-half revenue, earnings and adjusted operating profits which were all in line with forecasts and reaffirmed its profit guidance for the year.

But a combination of foreign currency benefits, reduced working capital and the cost cuts meant the group beat forecasts for free cash flow, up 29.1 per cent, and it now expects that to be at the upper end of its original target for the full year.

Vodafone launched a £1 billion cost cutting scheme a year ago and accelerated the rate in May after confronting saturated markets in Europe and a slowing rate of growth from increased competition in emerging markets. Today said it would deliver that programme a year ahead of plan and would now extend this to a further £1 billion of cost savings by 2012.

In Europe organic service revenue for the group from the provision of ongoing services was down 4.5 per cent due to the tough economy and increasing competition.

Organic service revenue declined in Africa and Central Europe by 3.2 per cent with growth in the African Vodacom unit being offset by weakness in Turkey and Romania.

India, a key market for Vodafone had service revenue growth of 20.5 per cent after adding an extra 14.1 million customers.

Vodafone reported first half earnings before interest, tax, depreciation and amortisation (Ebitda) up 2.9 per cent to £7.5 billion, in line with expectations.

It also reported half-year revenues up 9.3 per cent to £21.8 billion. Revenues were down 3 per cent on an organic basis.

Additional reporting: Reuters

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist