Feeds

Recession-battered Europeans still squeezing Vodafone's pips

Don't panic, it expected to stumble on sales AGAIN

Beginner's guide to SSL certificates

Mobile operator Vodafone is still feeling the recession's squeeze in Europe as it posted another drop in revenues for the quarter ending last month.

The British group said its service revenue, including joint ventures, for the quarter was £10.155bn, down 3.5 per cent year on year following a 4.2 per cent slip in the previous three months.

Price pressures and increased competition in stronger markets, such as Germany and the UK, combined with ongoing crappy economic conditions across Southern Europe to hit Vodafone where it hurts. The firm said it was continuing to attempt to cut its costs.

"Against a background of significant revenue pressures in Europe we continue to drive cost efficiencies through a range of initiatives including further network sharing agreements (most recently with Wind in Greece), offshoring of business functions to shared service centres, centralisation of procurement costs, and ongoing reductions in support function costs," Vodafone said.

The results, including a 5.1 per cent drop in service revenue in Germany and a 4.5 per cent fall in the UK, were in line with its expectations, it added.

The company wrote down the value of its businesses in Italy and Spain, which are among the hardest hit by the recession, by £7.7bn in the last financial year and the pressures show no sign of easing. Service revenue was down 10.6 per cent in Spain and 17.6 per cent in Italy.

To try to revive things in Europe, Vodafone has been investing in new businesses and launching new services. The group paid €7.7bn for Germany's largest cable operator Kabel Deutschland so it can offer telly, broadband, fixed line and mobile phone bundles. It has also launched a new tariff in 16 markets called Vodafone Red, which lets users pay a price monthly depending on how much data they use and hands out unlimited calls and texts for free. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.