Vodafone Ireland Preliminary Results Announcement for the year ended 31 March 2004
Vodafone Ireland Delivers Continued Strong Performance 3G - Open for Business with launch of Data Card Lower Prices for Roamers - Available from Today Irish Shareholder Queries to be Managed from Ireland
[Vodafone Press Release] - 25th May 2004
Vodafone Group Plc. today issued its preliminary results for the year ended 31 March 2004. The following information relates to Vodafone Ireland's performance during the period and should be read in conjunction with the Group press release.
Vodafone Ireland Delivers Continued Strong Performance
Vodafone Ireland's subscriber base now exceeds 1.8million customers, rising from 1,740,000 to 1,864,000 in the twelve months to 31 March 2003. The addition of 124,000 customers in the past year reflects the leading position the company has maintained in an increasingly competitive marketplace.
Blended ARPU on a twelve-month rolling basis grew to €582 from €553 at March 2003. Post pay customer ARPU increased to €1123 from €1085, and pre pay ARPU rose to €361 from €336 over the same period. The increase in the customer base and ARPU drove a 12% increase in turnover when compared with the last financial year. Operating profit before goodwill amortisation increased by 16%, driven by the higher turnover and improvements in operating efficiency.
Vodafone Ireland's voice and data usage levels grew during the year and continue to lead the Group's European operations. Vodafone Ireland's monthly MOU (minutes of use) continues to be more than 50% higher than the Group average of 125 minutes, and remains the highest in the Group's controlled businesses. In addition, Vodafone Ireland's data performance - at 20.5% of its total service revenues, represents the highest levels in the Group's European operations. The average proportion of data as a percentage of total service revenues in the Group for the 12 months to 3I March 2004 was 16.1%. Vodafone Ireland's data ratio was over 4 percentage points higher. This strong performance in driving data services is attributed to continued high usage of text across the Vodafone Ireland base, strong sales and usage of Vodafone's Mobile Connect Card and the presence of over 230,000 Vodafone live! customers. At 12%, Ireland has the highest penetration of Vodafone live! handsets per customer base in the controlled Group. The service has been widely recognised in the industry as an enabler of data services usage by removing significant barriers through its easy to use applications.
3G Open for Business - A First for Ireland
Vodafone Ireland confirmed today that it will launch its first third generation (3G) services for businesses next month. The Vodafone Mobile Connect 3G/GPRS Datacard will be available through retail stores and business sales channels. With rates of up to 7 times the speed of the current GPRS datacard it will increase the speed and efficiency of popular office applications in a mobile environment.
The company has established three 3G roaming agreements with the UK, Spain and Japan, with further plans to extend agreements with other European countries in the coming months. In the past six months Vodafone Ireland has more than doubled the number of on-air third-generation sites, representing the most aggressive roll-out of any 3G network in Ireland. As at 31 March 2004 Vodafone had over 280 3G sites providing high speed data access to over 45% of the population.
Lower Prices for Roamers - Available from Today
Vodafone also confirmed the availability from today of its new roaming tariffs - Vodafone World - which represent price reductions of between 10 and 40% for roamers. This new roaming service will dramatically simplify roaming prices by offering Vodafone customers only five 'zones' worldwide and the best value ever when roaming with a local Vodafone network. The five zones comprise the UK; Near Europe; The Americas; Asia, Africa, the Middle East, Australia and Far Europe and offer Vodafone Ireland customers a single rate for making calls home, a single rate for taking calls and a standard text message rate, wherever you are. These costs apply at all times - day or night, weekday or weekend. Vodafone World offers complete clarity and transparency by replacing thousands of separate rates with just one key rate per zone on the Vodafone networks.
Irish Shareholder Queries to be Managed from Ireland
Vodafone Ireland also announced today that from July 1st Ordinary shareholders resident in Ireland can direct their queries to Computershare's office in Dublin. Previously queries were handled at Computershare's UK office in Bristol and this arrangement will remain available if preferred. However, going forward, any queries (either in writing, by telephone, e-mail or by fax) about the administration of holdings of ordinary shares, such as change of address, change of ownership or dividend payments, can be directed to Computershare in Dublin. The move will benefit Vodafone's 420,000 shareholders resident in Ireland, who will now be able to call a local number for queries or visit Computershare's office in Sandyford.
Commenting on Vodafone Ireland's performance, Dave Boorman, Chief Financial Officer, Vodafone Ireland, said: "The performance announced today emphasises Vodafone's continuing leadership in the Irish marketplace. It reflects a successful year where operating efficiency gains, continued customer growth, and increases in usage and ARPU have all contributed to revenue benefits and profit improvement. Despite intensified competition, including the introduction of FMNP (Full Mobile Number Portability) during the summer, we have won 124,000 new customers in the past year, which has contributed significantly to overall growth. We are particularly pleased with the accelerated adoption of our Vodafone live! products and services and their usage.
"Our excellent financial performance has allowed us to maintain the high levels of investment in our business here. We continue to invest in our 2G network, whilst accelerating the rollout of our 3G network, to ensure our customers receive the best coverage and quality of services now and in the future".
Paul Donovan, CEO, Vodafone Ireland added: "The figures released today are the highlights of a good all-round operational performance, reflecting the success of Vodafone's compelling, brand-driven, customer propositions. Irish consumer appetite for mobile services continues to strengthen with voice usage on the Vodafone network in Ireland over 50% higher than the Group average, and total data usage second only to Japan. The addition of over 124,000 customers to our base in the year is further proof of the growing trend in Ireland of abandoning fixed line communication in favour of mobile, because it is cheaper and more convenient for many categories of users.
"We are pursuing an increasingly segmented approach to servicing our customers needs and throughout the year delivered on a series of insight-led propositions. This continuous dialogue with customers enables us to tailor innovative, responsive and cost effective communications solutions. Throughout the year we delivered on a programme of pricing innovation, including the announcement last week of a range of new roaming tariffs which ensure that customers roaming on Vodafone networks across the world are getting the best deals. This move follows closely behind our recent price reductions for business customers, our current offering of a 10% cost reduction for prepaid customers, and reflects an ongoing programme of pricing enhancements. We remain resolute on delivering a superior quality service to our customers and continue to find ways to reduce costs, innovate and add value.
"One of the key developments during the year was the expansion of our Corporate Social Responsibility programme and the publication of our first CSR report. This report reviewed our progress to date and also identified how we might improve on the steps we are taking on this journey.
"Vodafone Ireland is determined that our people and our products and services will make a vital difference, not just by facilitating effective communications but by ensuring that communities around Ireland directly benefit from the work we do. In a co-operative approach with Government we committed €4million over 3 years as one of the telecommunications operators to jointly commit towards the rollout of broadband to all 4,100 primary and secondary schools. Another key achievement during the year was the establishment of the Vodafone Ireland Foundation and the award of funding to fourteen Irish projects. Vodafone Ireland has committed to an additional investment of over €500,000 to fund grant making activities to Irish registered charities through the Foundation in 2004/05," he concluded.
