Vodafone increases profits and usage

MORE than one billion text messages were sent by Vodafone customers in Ireland in the months leading up to Christmas — as global group sales soared 14% to £10.47 billion (€11.6bn).

Vodafone said its Irish customers exceeded the European average for voice minutes and messages sent, with customers here using on average 253 voice minutes and sending 160 messages in the three months to the end of 2008. This compares to a European average of 148 voice minutes and 77 messages.

Vodafone Ireland said that it had a customer base of 2.23 million at the end of the quarter while its fixed line and DSL business stood at 80,149, bringing Vodafone Ireland’s total base to 2.31 million.

The company said it grew its mobile broadband base in the quarter to 102,000.

For the first time, more than one billion text messages were sent, a 20% increase on the same quarter last year.

Total voice minutes in the last quarter increased by almost 7% to 1.65 billion compared to the same quarter in 2007.

Director of strategy with Vodafone Ireland Gerry Fahy said: “Despite intense competition, Vodafone has continued to deliver good value products and services to our personal and business customers.

“Vodafone will continue to drive innovation in the mobile and fixed line businesses as we implement our strategy of total telecommunications.”

Mr Fahy said Vodafone is undergoing a period of change as it repositions the business to meet the “challenges and opportunities” of the new market conditions.

On a group level Vodafone said third-quarter sales rose 14% as the pound slid and revenue climbed in India.

Sales in the three months to December 31 climbed to £10.47bn (€11.6bn) from £9.16bn a year ago.

The pound slumped 23% against the euro in 2008, increasing the value of Vodafone’s euro-denominated sales when converted to pounds. Excluding currency swings and acquisitions, revenue fell 1% as growth in Asia and Africa failed to make up for a decline in Europe, where the company generates two-thirds of its sales.

“Currency changes obviously helped Vodafone,” said John Clarke, a telecommunications analyst with Brewin Dolphin Securities.