Vodafone NL Q3: revenue, margin and customer down – Telecompaper

Vodafone Netherlands saw the dienstenomzet in the second quarter of fiscal year 2016/2017 with a 3.3 percent drop to eur 434 million. Competition and lower roaminginkomsten are the causes. The margin decreased because of cost savings the pace of the decline in revenue could not keep up. The sale of Vodafone Netherlands to the joint venture with Liberty Global is on track and by the end of 2016 completed. Vodafone NL is then delivered by the Vodafone Group has been deconsolidated.

The number of customers decreased to 4,963 million (-68.000), but the proportion of postpaid customers increased to 77,2 percent. Both postpaid (-12.000) if prepaid (-56.000) declined in the quarter. However, increased postpaid and prepaid ARPU’s. Both were of 0.3 euro higher, respectively. To 30.8 and 3.8 euros. The number of customers of Vodafone at Home, that T-Mobile EN sold, increased to 143.000 (+20.000).

Financials

For the Netherlands, Vodafone the most results only on a biannual basis known. If we get the results divide into Q1 and Q2 in proportion to the dienstenomzet (which gives Vodafone a per quarter), then we see the next financial developments for the second quarter of financial year 2016/17 (as at 30 september):

• Sales of 459 million (-6,1%), with dienstenomzet 434 million (-3,3%) and other sales (handsets e.a.) 25 million (-39%).
• EBITDA 159 million (-6,5%), with a margin of 34.8 percent (previous year to 34.9%).
• capital expenditure (capex) 61 million (-20%).
• The free cash flow (in our definition: EBITDA minus capex) 98 million (+4,2%).

Assignment

In the Vodafone Group performs, the Netherlands weaker than the other countries. Only in Malta and the Netherlands decreased the dienstenomzet and the Netherlands belongs to the few countries where the margin decreased.

At the group level, Vodafone created two initiatives walk. The Customer eXperience eXcellence (CXX) program is aimed at improving the image (measured in NPS and brand consideration) to improve. On four aspects (CARE) works with the group to this:

• Connectivitity: quality assurance in 17 countries.
• Always in control: the My Vodafone app is available in 21 countries and is on average 39% of the smartphones installed.
• Reward loyalty: loyalty programs in 17 countries.
• Easy access to: 24/7 live chat available in 14 countries.

in Addition, there is the Fit for Growth programme, focusing on efficiency and cost savings (measured by the EBITDA margin).

The outlook for financial year 2016/17 is due to the group marginally reduced. The EBITDA should be in the range between 15,7 and 16.1 billion euro (old: between to 15.7 and 16.2 billion). The goal for the free cash flow, in the definition of Vodafone, is still: at least 4 billion euro.