Ireland counters Vodafone downturn
Growth from emerging markets has helped cushion the impact of Europe’s weak economies in the last two years, but the key market of India showed signs of slowing in the last three months.
Vodafone group chief executive Vittorio Colao said that, due to the poor results, the company had to cut costs.
“Inevitably we are now about to embark on a new wave of cost initiatives,” he said. “It is what you have to do when times are tough.”
In Ireland, Vodafone reported a 0.5% rise in its total customer base. The mobile phone operator now has a total customer base of 2.44 million at the quarter ended Jun 30, according to its interim management statement.
Smartphone and data usage continue to drive growth for Vodafone Ireland. The number of customers using smart phones on the network has risen by 56% year-on-year, to 823,000. Over half (53%) of Vodafone Ireland customers now use internet on their mobile devices, including phones, tablets and notebooks, an increase of 14% year-on-year.
Vodafone’s fixed line voice and broadband products were strong performers. The company has added 21,000 customers fixed line customers to take the total to 241,00.
Vodafone Ireland’s contract base was 752,000, representing growth of 3.7%, and a net addition of 27,000, on the same period last year. Vodafone Ireland does not expect to be hit by the group’s plans to increase cost-saving measures. A spokesperson for Vodafone Ireland that they will continue to manage back-end costs.
“Vittorio Colao outlined that Vodafone will continue to manage its cost base across the group,” the spokesperson said. “This does not relate specifically to any new cost-efficiency programmes but we will continue to ensure the business is as efficient as possible.”
A recent network-sharing deal between 3 and Vodafone Ireland is expected to save both companies about €250m.
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