Vodafone still well despite 4% hit

VODAFONE shares took a near 4% hit yesterday on fears of increased competition, despite doubling dividend payments and unveiling a €6.54bn share buyback programme.

But the world’s largest mobile phone operator continues to do well in Ireland, generating record average revenue per user (ARPU) figures here. But it is losing the growth battle to stiff competition from O2 and Meteor. Vodafone now has 1,952,000 Irish customers.

And the company is to create 100 new jobs at its Leopardstown HQ at a call centre for its international customers.

Goodbody Stockbrokers’ Neil Clifford said: “During FY05, Irish ARPU was €50.67 per month, compared to monthly ARPUs in other European countries of: Germany €24.91, UK €36.98, Italy €29.91 and Netherlands €37.67.”

For the twelve months ended 31 March 2005, Vodafone Ireland reported prepaid ARPU of €375 (€31.25 per month) and postpaid ARPU of €1,198 (€99.83 per month) leaving Vodafone with a blended ARPU for the year of €608 (€50.67 per month). Seven in ten of Vodafone Ireland’s customers are prepaid.

Vodafone’s chief executive Arun Sarin divulged that growth at the company was slowing after €238 billion of acquisitions under his predecessor, Chris Gent.

Vodafone said the margin on earnings before interest, tax, depreciation and amortisation (EBITDA) may be “flat to 1 percentage point lower” compared with last year’s.