Vodafone announced today its financial results for the year ended 31 March 2018, which demonstrate strong growth for the company in revenue, mobile market share and fibre connections. Innovations in both mobile and fixed, including Vodafone TV and Vodafone Pass, underpinned the strong performance.
Total Revenue grew by +$5.1m year on year to $2,030m as we grew our mobile customer base faster than the rest of the market*. In addition, more customers took up our interest free handset offers, growing Vodafone’s estimated share of handsets sold in the past 12 months to 44%**.
Vodafone CEO Russell Stanners commented on the company’s performance, saying, “Market response to innovations we launched over the last year including Vodafone Pass and, more recently Unlimited Mobile with free Netflix***, have enabled us to maintain our market-leading Average Revenue Per User (ARPU) in mobile.”
Successful My Flex and Vodafone Pass campaigns materially contributed to Vodafone’s strong mobile performance. Since the launch of Vodafone Pass in November 2017, customers have taken up 2.6 million passes, which offer endless data for Kiwis’ choice of Social, Music, Video or Chat content. Launched just last month, Unlimited Mobile with Netflix on us for $79.99 per month*** is being embraced by customers and compliments Vodafone’s portfolio of worry-free mobile options.
Vodafone made a profit after tax of $39.0m, representing a year on year drop of $7.7m largely due to declining Broadband profitability in a highly competitive market, one off advisor costs incurred in preparing to potentially IPO Vodafone New Zealand and foreign exchange losses.
Vodafone New Zealand continued to hold its number 2 position in the fixed market with strong growth in fibre broadband connections despite aggressive price competition. The company successfully launched Vodafone TV during the year, a TV service which brings Sky TV, free-to-air and a range of app-based entertainment services, including Netflix, together in one set-top box system.
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*Reference: Externally reported information (Spark financial release, mobile customers grew +58k in their latest 12 months, Vodafone NZ grew +92k in their latest reported 12 months, 2degrees reduced (27k) in latest reported 12 months).
**Source: internal Vodafone Group analysis of global handset volumes .
*** Credit equal to 12 months Netflix ‘Standard’ plan valued at $14.99 (total value $179.88), while you remain a Vodafone customer on an eligible plan. Netflix auto renews at the end of your credit. You will be charged at your monthly plan rate unless you cancel. You must activate your Netflix service using the link provided within 2 months of receipt. Netflix compatible device required. Additional terms apply, see vodafone.co.nz/legal/terms-conditions/netflix/.