Irish gift of the gab rings up profits for Vodafone

IRISH customers of the world’s biggest mobile phone network are second only to the Japanese when it comes to talking.

Our gift of the gab helped Vodafone’s Irish sector increase revenue by 12% last year, maintaining its reputation as one of the best performers of all the network’s global operations.

Unaudited figures suggest profits for the year to March 31 will be in the region of €330 million, up 16% on the previous year. The full figure will not be announced until the end of September.

Worldwide, Vodafone reported annual profits of £10 billion (€15bn), up 19%, after sales increased by 10% during the year to £33.6bn (€50bn).

In Ireland, Vodafone’s turnover grew by 12%, reflecting increased voice and data usage. The revenue that Vodafone receives from each customer, known as Average Revenue Per User, (ARPU) grew from €553 to €582.

Vodafone said the data continue to show its 1,864,000 Irish customers talk more than those in most other countries. The company has 54% of the Irish market.

“The figures released today are the highlights of a good all-round operational performance,” said Vodafone Ireland chief executive Paul O’Donovan. “Irish consumer appetite for mobile services continues to strengthen with voice usage on the Vodafone network in Ireland over 50% higher than the group average, and total data usage second only to Japan.”

Irish customers are spending about 7% more per year on mobile services than they did a year ago. ARPU in Ireland was the highest in the world save for Japan, where ARPU came to €621 (82,917 yen).

Vodafone Ireland also announced cheaper roaming tariffs from today, reflecting growing complaints from politicians and the communications regulator ComReg that Irish customers deserve a better deal.

The new tariffs represent price reductions of between 10% and 40% for roamers. The company says the new roaming service will dramatically simplify roaming prices by offering Vodafone customers only five “zones” worldwide and the best value when roaming with a local Vodafone network. However, those who choose to roam on a rival network will have to pay increased fares.

Suggestions that Irish customers were being overcharged were strongly refuted by Mr O’Donovan.

“Irish customers use their mobiles for longer than those in most other countries. They get a very good deal,” he said.

Vodafone has long argued Irish consumers use their phones more and, along with rival O2, the company presented evidence to an Oireachtas sub-committee last year to prove its case.

But last month, ComReg described such evidence as inconclusive and said it is aiming to force Vodafone and O2 to sell wholesale airtime to other operators at fixed prices to boost competition. Both firms are resisting the move.