Vodafone boosted business growth in the UK

Vodafone’s UK business helped improve performance across Europe in the first quarter, benefiting from increased customer numbers, higher contract prices, and increased roaming and visitor revenue.

Service revenue, a key metric that includes sales from contract payments, network and roaming use but not mobile phones, in UK business rose 6.5 per cent in the three months to June 30 of the previous year, compared with 2 per cent growth in the quarter. Previous.

Chief Executive Officer, Nick Read, said Vodafone’s roaming and visitor numbers were not back to 2019 levels before the Covid pandemic hit, but “every quarter we come back more”.

He added that “Europeans traveling within Europe have returned to pre-pandemic levels”, but the number of those traveling outside the region has not recovered from Covid-19.

He said Asian customers had not yet traveled “as much as we are used to” but that Americans were returning. “When people travel, they use our services more. Our volume has gone up.”

Overall, Europe’s largest broadband provider said it was on track to deliver its full-year guidance, forecasting adjusted earnings of between €15 billion and €15.5 billion before interest, depreciation, tax and amortization.

Vodafone said in a statement on Monday that total group revenue in the last quarter rose to 11.3 billion euros from 11.1 billion euros a year earlier.

However, Reed warned that higher energy prices will increase costs for the year.

“Vodafone’s biggest inflationary pressure is energy,” he told the Financial Times on Monday.

He said the company would have to spend €100 million to hedge energy costs for the full year, on top of the €200 million it had already spent.

“But when you see the turmoil happening around the world, we’re demonstrating our resilience as a company, with growth in Europe and Africa,” he added. “We’re repeating the scope of our guidance.”

London-listed Telecom Group entered the domestic broadband market last year and now provides 8 million households in the UK with full fiber broadband. It does not have a residential fixed line network in its home market, and it leases power from its competitors.

Vodafone shares, which trimmed its earlier 0.4 percent drop in London trading on Monday, were unchanged from Friday. It’s up 15 percent this year.

The group has more than 25 million customers in Europe after acquiring cable networks in markets including Germany and Spain.

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