Vodafone Ireland sales grow but mobile subscriptions fall

Vodafone Ireland says its total revenues increased by almost 2 per cent last year to €953.7 million, which it mainly attributed to a strong performance by its fixed-line and broadband division.

Revenues at Vodafone’s fixed-line division were up more than 12 per cent to €214.7 million in the year to the end of March, and its customer base for fixed-line services rose by 17,400 to 239,000 accounts.

Subscriptions to its mobile services, however, appear to have dipped below 2 million for the first time in more than a decade. The company said it grew its cohort of contract mobile phone customers by 41,700.

It said mobile data usage is up by 72 per cent, as customers get more attached to content-rich services available on smartphones. Vodafone says that 1 million 4G devices are registered on its mobile network here.

Vodafone launched quad play services - phone, television, mobile and broadband - in the Irish market in January. It has also invested in a wholesale fibre joint venture with ESB, called Siro.

“Over the past 15 years Vodafone Ireland has invested €1 billion in our network and services and plans to invest in excess of €200 million across fixed, mobile and in our IT transformation programme,” said Anne O’Leary, Vodafone Ireland chief executive.

Meanwhile, the wider Vodafone group said its earnings growth would accelerate this year after a programme to improve its networks boosted demand in Europe and helped the group to return to underlying growth in 2016 revenue and core earnings for the first time since 2008.

The world’s second-largest mobile phone operator reported full-year revenue of £41 billion , up 2.3 per cent on an underlying basis and broadly meeting market forecasts, reflecting a better performance in South Africa, Egypt and Turkey.

It posted earnings before interest, tax, depreciation and amortization of £11.6 billion, slightly shy of forecasts but up 2.7 per cent and said it expected this rate to accelerate to 3-6 per cent this year.

The return to growth in Europe - the first since the end of 2010 - came as Vodafone reached the end of its Project Spring multi-billion pound investment programme to improve its networks.

Chief Executive Vittorio Colao said the programme had transformed the quality of the group's technology and customer experience. "I am confident we will sustain our positive momentum in the coming year, allowing us to maintain attractive returns for our shareholders," he said.

(Additional reporting: Reuters)