Vodafone share price: Group’s total quarterly revenue dips

on Feb 2, 2017
Updated: Oct 21, 2019

Vodafone (LON:VOD) has updated investors on its quarterly performance this morning.

**Highlights from Vodafone’s statement:**
Group total revenue was €13.7 billion and Group service revenue was €12.3 billion. Total revenue declined 3.9%, including a 4.0 percentage point negative impact from foreign exchange rate movements.
On an organic basis, service revenue increased 1.7%* (Q2: 2.4%*). The Q3 organic growth rate excludes Netherlands, which is classified as a joint venture and going forwards will be accounted for under the equity method following the creation of VodafoneZiggo Holding B.V on 31 December 2016.

Europe continued to grow (Q3: 0.7%*, Q2: 1.0%*), however our performance in AMAP slowed (Q3: 3.9%*, Q2: 7.1%*) due to competitive pressure and de-monetisation impacts in India. Excluding India, Group growth was broadly similar (Q3: 2.2%*, Q2: 2.0%*).
Vittorio Colao, Group Chief Executive, commented:
“Our overall performance in Europe and Africa remained strong during the third quarter, reflecting good execution. In Europe, service revenue growth continued, led by Italy, Germany and Spain. Mobile contract ARPU continued to stabilise, reflecting the successful adoption of our ‘more-for-more’ propositions, while we remain Europe’s fastest growing broadband company, illustrating our effective convergence strategy. In the UK we have made good progress in improving customer service but face heightened price competition in Enterprise.

In AMAP, our strong organic performance in South Africa and Turkey was partially offset by India, where the sector is affected by free services from the new entrant. We anticipate intense competitive pressure in India in the fourth quarter and are taking a series of commercial actions, including the extension of 4G services to 17 leading circles. As announced earlier this week, we have also entered discussions with the Aditya Birla Group about an all-share merger of Vodafone India and Idea.
We are reconfirming our guidance for the year and are confident that we will sustain our commercial momentum.”
**More to follow…**
As of 07:06 GMT, Thursday, 02 February, Vodafone Group plc share price is 196.77p.

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