Vodafone adds 112,000 customers in Ireland

Vodafone Ireland has reported a 14 per cent year-on-year growth in contract subscribers, adding 112,000 contract customers in the year to March 31st 2014.

In total, the company said that it maintained its total customer base of 2.4 million, and is the mobile market leader with 2.1 million mobile customers.

The communications group also pointed to a continued rise in the use of smartphones, with 61 per cent of its customers now using phones which are connected to the internet.

On a global basis, revenues at the group fell by 1.9 per cent to £43.6 billion, with EBITDA down 7.4 per cent at £12.8 billion in the 12 months to March 31st. Final dividend per share was 7.47 pence, giving total dividends per share of 11.0 pence, up 8 per cent.

Vodafone said core earnings would fall in 2015 due to the investment needed in the business as it recorded impairments of £6.6 billion due to fierce competition and regulatory changes in Europe. The world’s second-largest mobile operator has reported record falls in underlying revenue in the last 18 months, as a result of numerous European rivals, regulator-imposed price cuts and European consumers reducing the number of calls they made during the recession.

On Tuesday it wrote down the value of its assets in Germany, Spain, Portugal, Czech Republic and Romania by £6.6 billion and said core earnings in 2015 would fall due to vital spending on its network to boost speed and coverage.

After selling its US business in a $130 billion deal, Vodafone plans to invest around £19 billion over the next two years, which includes the money assigned as part of its investment programme called Project Spring. The company has been allocated significant additional investment for Ireland as part of this investment programme.

These investments will bring core earnings down to a range of £11.4 billion to £11.9 billion for 2015, from the £12.8 billion pounds it recorded in 2014 - itself down 7.4 per cent, though results were in line with forecasts and helped by an improvement in underlying trading in the fourth quarter.

“Our operational performance has been mixed,” chief executive Vittorio Colao said. “The group’s emerging markets businesses have performed strongly throughout the year. In Europe, where we continue to face competitive, regulatory and macroeconomic pressures, we have taken steps to improve our commercial performance, particularly in Germany and Italy, and are beginning to see encouraging early signs.”

(Additional reporting: Reuters)