Service revenue rises 0.8% at Vodafone Ireland

Vodafone raises free cash flow guidance after good first half

Mobile group Vodafone raised its forecast for this year’s free cash flow on Tuesday after it reported 6.5 per cent growth in adjusted core earnings in its first half, driven by a good performance in Germany, its largest market. Photograph: Dominic Lipinski/PA Wire

Mobile group Vodafone raised its forecast for this year’s free cash flow on Tuesday after it reported 6.5 per cent growth in adjusted core earnings in its first half, driven by a good performance in Germany, its largest market. Photograph: Dominic Lipinski/PA Wire

 

The Irish arm of mobile group Vodafone said its service revenue and customer base grew in the second quarter of the year, as the wider Vodafone group raised its free cash flow guidance.

Service revenue at Vodafone Ireland was €203 million for the period, a rise of 0.8 per cent year on year, driven by continued growth in mobile – both contract and prepaid – and fixed broadband. Roaming revenues also rose during the period.

Vodafone Ireland said its total number of mobile customers rose 1.5 per cent, adding more than 28,000 additional contract and prepaid customers. The company’s total fixed broadband customer base increased by 5.3 per cent year-on-year to 309,000.

“We are very pleased to see increased growth across all core areas of our business this quarter, driven by continued investment and expansion across our mobile and fixed broadband services. Growth has been particularly strong across our mobile contract base, reflecting continued satisfaction with the reach, reliability, and strength of our network in Ireland,” said Anne O’Leary, CEO of Vodafone Ireland.

“This quarter also saw us take important and exciting steps to increase our positive social impact. Through Vodafone Foundation we were pleased to announce a new first of its kind programme in Ireland, Hi Digital, a five-year dedicated, nationwide digital skills training programme for over 65s, in partnership with Alone and Active Retirement Ireland. The programme will help in addressing the ever-growing digital divide between generations in Ireland and we are delighted to be working with our two charity partners to help support getting older people online.”

Vodafone Ireland also announced a strategic partnership with Kerry-based technology company, Net Feasa, to deliver a new globally connected intermodal smart container solution (IoTPASS) for the freight logistics industry.

On a group basis, Vodafone raised its forecast for this year’s free cash flow on Tuesday after it reported 6.5 per cent growth in adjusted core earnings in its first half, driven by a good performance in Germany, its largest market.

The British company raised the floor of its full-year earnings guidance to €15.2 billion from €15.0 billion, with the top remaining at €15.4 billion, and upped its free cash flow target to at least €5.3 billion from at least €5.2 billion.

Chief executive Nick Read said the results demonstrated “solid commercial momentum”.

“Our strengthened performance in Africa and Europe puts us on track to be at the top end of our guidance for this year, as well as firmly within our medium-term financial ambitions,” he said.

Vodafone said its total revenue grew 5 per cent to €22.5 billion in the six months to end-September, driven by service revenue growth in Europe and Africa and a recovery in handset sales following Covid-19 disruption in the prior year.

Adjusted core earnings came in at €7.6 billion, with growth boosted by a 0.7 point margin increase.

Analysts will likely nudge up forecasts after the results. They had expected Vodafone to report earnings of €15.2 billion this year and cash flow of €5.23 billion euro, according to a company-compiled consensus. – Reuters