Rate of decline slows in Vodafone's United Kingdom business

Vodafone’s strong performance on the Continent was offset by weaker figures from India and the UK

Vodafone’s strong performance on the Continent was offset by weaker figures from India and the UKToby Melville Reuters

"Our focused investment strategy delivered a further improvement in our revenue market share in our leadership circles, based on regulatory disclosures for the prior quarter", the telco said.

Vodafone added 3.4 million 3G/4G customers in India during the fiscal first quarter to June.

What Vodafone saidAlthough competition in India remains intense, service revenues stabilised compared with the prior quarter. "This did, however, stimulate a 78% year-on-year growth in monthly data usage per customer to 1.1GB (Q4: 0.6GB)", Vodafone said.

The mobile operator's overall current revenue also fell 3.3 percent to €11.47 billion ($13.27 billion) compared to €11.87 billion the same period a year ago showing the negative impact of forex rate movements and deconsolidation of Vodafone Netherlands.

In Ireland the company's service revenue declined 2.5pc in the quarter, however excluding MRTs, revenue in Ireland grew 1.1pc supported by what the company said was "ongoing fixed customer growth".

"Despite the on-year decline, sequential quarterly trends are stabilizing as SIM consolidation is beginning to improve ARPU in the low-value segment, helping offset pricing pressure in the mid and high-value segments of the base", the company said in an official statement.

The number of contract customers declined in the quarter by 2,000, with Vodafone claiming the cause was its decision to phase out MVNO Talk Mobile. It ended the June quarter with a customer base of 211.9 million.

Vodafone's chief executive Vittorio Colao said that they made a good start to the year in Europe, where their commercial momentum is still going strong and growth accelerated across Africa, Middle East and Asia Pacific (AMAP) region.

In May 2017, Vodafone announced that Vodafone Group would exchange a 35% indirect interest in Safaricom for 226.8 million new ordinary Vodacom shares, enabling the company to simplify the management of its sub- Saharan African holdings. The merger is expected to be completed in 2018 and Vodafone will own 45.1% of the combined group while Aditya Birla Group, Idea's parent company, will own 26%.

"Vodafone India has been classified as discontinued operations for Group reporting purposes". However, the Group did add 8.8 million 4G customers in its first quarter, bringing total numbers in the area to 83.5 million.

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