The company improves its cancellation rate and keeps its income from fixed business stable
Vodafone Spain has billed 971 million euros in its third fiscal quarter, which runs between October and December, 9.8% less than in the same period of the previous year, due to price competition and a drop in revenue of ‘ roaming’.
The firm has thus certified a calendar year in which it has remained below the 4,000 million euros invoiced with 3,949 million euros of income, 6.51% less than the previous year, according to the financial accounts published this Wednesday.
Service revenues have been reduced by 8.7% to 858 million euros, affected by the aforementioned factors and the drop in mobile termination prices, which makes the Spanish unit with the greatest drop in revenues among the main subsidiaries of the group.
This fall has been caused mainly by the decrease in mobile revenues, which have fallen by 11%, while the fixed business has remained stable at 310 million euros billed in the quarter.
In the mobile field, the fall in the monthly price paid per customer (ARPU) continues to occur and Vodafone ended the quarter with an ARPU of 12.4 euros per month, 10.7% less than in the same period of the previous year.
Vodafone announced in September that it will update its rates based on the Consumer Price Index as of January, a measure that has become effective as of January 22 and will have an impact on revenue in the first quarter.
However, at the customer level, it has resulted in a reduction in the base of 19,000 mobile lines and 27,000 broad lines, as well as the loss of some 6,000 convergent customers, although the company has improved its cancellation rates (‘churn ‘ in the jargon of the sector) up to 18.6%.
Thus, Vodafone ended the year with 13.6 million mobile customers, of which 82.2% are contract, 2.9 million fixed broadband lines and 1.49 million pay television customers , which means 9,000 less than three months ago.
At the beginning of January, the CEO of Vodafone Spain, Colman Deegan, announced that he would leave office at the end of March, while the entity integrated Spain into the Vodafone Europe ‘cluster’ to simplify its structure.
