Vodafone rings up 28% rise
Wednesday 05 June 1996
UK turnover increased to pounds 1.24bn from pounds 1.08bn the year before, a much slower rate of growth than the 630,000 net gain in subscribers, to just over 2.45 million. Chris Gent, managing director, said the falling trend in average revenue per subscriber was a result of the greater proportion of lower-spending individuals connected compared with business users.
But he said there were signs that this trend might be reversed by newly introduced "bundled" tariff packages, where customers are offered some free usage with subscriptions. This had shown a "very encouraging start".
Vodafone said churn rates, the rate at which subscribers cancel, had edged down to 25.6 per cent by the end of March from 28.5 per cent a year earlier as a result of stringent controls.
Vodafone had not been expected to be hit as much as its biggest rival, Cellnet, by cancellations, following the strong entry of Orange into the digital mobile phone market.
He said new tariffs could slow the anticipated decrease in revenue per subscriber during the new few years as more personal customers mix with Vodafone's business-based subscribers. Revenue per customer for the year to March was pounds 484.
Vodafone said strong demand for mobile telecommunications continued world- wide. Subscribers abroad more than doubled last year to 585,000, 20 per cent of total users.
The company may spend up to pounds 700m in infrastructure development and exploring international opportunities in the year to end-March 1997, Ken Hydon, finance director, said. Net debt could exceed pounds 600m by March next year, with borrowings likely to be used to fund further strategic investments. But he added that "naturally, if a large investment opportunity arose we could issue shares".
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...