Vodafone News Update: Vodafone Suffer Germany Slump
Vodafone news update: Vodafone suffer drop in revenue in Germany following a year of struggle with regulations, the recession and European competition.
“The British telecoms giant, which has been battling increasing regulation, recession and competition across Europe in the last year, said on Friday its organic service revenue was down 5.1 percent in Germany, its biggest European market.
Service revenue in Britain was down 4.5pc while Spain was down 10.6pc and Italy down 17.6pc, as customers sought to save money by making fewer calls and retaining older handsets, and as rivals stepped up competition.
Overall, the fall of 3.5pc was slightly improved on the record fall of 4.2pc recorded in the fourth quarter, but it is still a sharp drop for a group that was posting growth only 12 months ago.
‘Although regulation, competitive pressures and weak economies, particularly in Southern Europe, continue to restrict revenue growth, we continue to lay strong foundations for the longer term,’ Chief Executive Vittorio Colao said in a statement.
The tougher competition in the once-stable market of Germany has surprised investors who only last year saw the market as a haven of growth and high margins in a region of furious competition.
The British group has also been hit hard in its southern European markets, and was forced to write down the value of its businesses in Italy and Spain by £7.7bn in the last financial year.
Vodafone said the Italian market was struggling with the tough economic conditions which had resulted in intense price competition as well as changes to regulatory rules over how much operators can charge each other to connect and disconnect calls.
The group did enjoy better fortunes in its emerging market division however, with organic service revenue in India up 13.8pc as the market started to stabilise following an intense price war.
The British firm reiterated its full-year outlook and said group overall revenue in the three months to the end of June was £11bn, in line with consensus.”
This article was originally sourced from The Telegraph.
Vodafone are one of the biggest mobile phone providers in the UK but their status in Europe has been under threat over the past year as the telecoms company have tried to battle against the new regulations and the recession that has been present in Europe for a few years now. The company continue to go from strength to strength in the UK though and whether you are a new or existing customer you can use the following contact number to speak with a member of the customer services department, http://www.customerservicescontact.co.uk/vodafone-contact-number/.
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