Vodafone grows 4G sales and profits

Mobile phone company Vodafone has reported a rise in quarterly sales for the first time in almost three years on increased demand for 4G services.

Mobile phone company Vodafone has reported a rise in quarterly sales for the first time in almost three years on increased demand for 4G services.Profits for 2014 also received a significant boost from the sale of Vodafone’s US Verizon business and comes as the network reported core earnings for the year to 31 March of £11.9 billion.

Vodafone said group sales rose 10.1% in the year to £42.2 billion, while service revenue rose 9.4% to £38.5 billion.

The mobile operator has spent the last 12 months investing in speeding up its network and boosting coverage.

Although small, the 0.1% rise in fourth-quarter organic service revenue followed 10 quarters of declines and means its overall earnings could also stabilise in 2016.

Vodafone said 4G service speeds were now available across 70% of its European network.

But it remained cautious in its outlook, warning that it would continue to invest in its network this year.

It added it would also continue to make improvements to customer service, in order to reduce the number of customers leaving it in its most mature market.

Vodafone forecast core earnings would be in the same region as this financial year, of between £11.5 billion and £12 billion.

Vittorio Colao, Vodafone group chief executive, said the group had seen increasing signs of stabilisation across many of its European markets, supported by very strong demand for data. He added revenue trends were improving as a result of a growing number of customers.
Quad play

The group’s acquisition of German and Spanish cable TV and broadband firms Kabel Deutschland and ONO – designed to ensure Vodafone did not get outflanked by rivals offering Television, fixed-line broadband and telephone service, alongside mobile phone packages – had also provided a strong platform for further growth in Europe, Vodafone said.

Mr Colao added: “We have significant opportunities ahead of us, with only 13% of our European mobile customers using 4G, and our market share in fixed services only a fraction of our share in mobile.

“In addition, businesses around the world are increasingly looking to put mobility at the centre of their own strategies. With the assets and skills we have today, further enhanced by the completion of Project Spring, we will be strongly positioned to provide ever-improving services to customers and seize these opportunities.”

May 25, 2015  Tags: , , , , , , ,   Posted in: Business Growth, Business Profits, Business Sales, Business Win, Digital Business, Exporting Businesses, Global Business, Technological Businesses, Uncategorized, Winning Business

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