Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Q3 2015/16 Earnings Presentation
28 slides from Vodafone Group Public's earnings presentation, Feb 4, 2016
Slide 1: Vodafone Group Plc Trading update
Vodafone Group Plc Trading update For the three months ended 31 December 2015 4 February 2016
Slide 2: Disclaimer
Disclaimer Information in the following presentation relating to the price at The presentation also contains non-GAAP financial information which relevant investments have been bought or sold in the past or which the Group’s management believes is valuable in the yield on such investments cannot be
Slide 3: Commercial review
Commercial review Vittorio Colao Group Chief Executive
Slide 4: Q3 15/16 highlights
Q3 15/16 highlights • Group service revenue +1.4%: sixth consecutive quarter of improvement • Continued momentum in AMAP +6.5%, further recovery in Europe -0.6% • Strong commercial progress: Europe mobile contract net adds 0.5m, Group fixed broadband customers +0.4m • Enterprise revenue +2.6%1; cont
Slide 5: Delivering growth: 6th quarter of service revenue improvement
Delivering growth: 6th quarter of service revenue improvement Service revenue growth % Group Europe AMAP 6.7 6.1 6.7 6.5 2.0ppt 5.7 5.8 4.5 1.2 1.4 0.1 0.8 5.6ppt (0.4) (0.6) 7.6ppt (1.5) (1.5) (1.0) (2.6) (4.2) (3.5) (5.4) (8.2) Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16 Continu
Slide 6: Delivering growth: engines of growth
Delivering growth: engines of growth Mobile contract base Millions NGN fixed customers Millions 92 5.6 6.0 91 5.1 5.3 4.7 90 88 87 +5m YoY +1.3m YoY Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16 Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16 Europe 4G & Emerging markets 3G customers Millions Enterprise
Slide 7: Project Spring: delivering leading network positions & data growth
Project Spring: delivering leading network positions & data growth Italy: P3 test, Nov 2015 Points Spain: P3 test, Oct 2015 Points South Africa: Download Atio test, Dec 20151 speeds (Mbps) Voice Data Voice Data 509 503 500 480 433 398 352 393 14.5 319 265 223 268 338 317 316 6.7 5.6 4.5 218 Vodafone
Slide 8: Project Spring: supporting fixed / convergence growth
Project Spring: supporting fixed / convergence growth Increasing reach Achieving scale Expanding services European homes marketed Millions Fixed broadband customers Millions Fixed/converged: recent launches with high speed broadband % NGN customers 39% 42% 43% 45% 46% Vodafone broadband, Oct 2015 66
Slide 9: Expanding fixed services: enhancing consumer offers
Expanding fixed services: enhancing consumer offers Vodafone One TV Vodafone TV Champions League >100 TV & Radio and La Liga channels Launched Aug 2015 Launched Jan 2016 Instant 7 day catch up 1.0m TV users and wireless multi-room 1Gbps fibre 300k football subscribers service to support TV 12 market
Slide 10: Project Spring: supporting Enterprise growth
Project Spring: supporting Enterprise growth Continued growth Enabling Total Communications Organic service revenue growth % IP-VPN reach: 65 countries and 259 PoPs3 2.61 2.41 2.11 1.4 28% of Group service revenue (1.1) Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16 VGE M2M Cloud & Hosting Fixed Fixed
Slide 11: Operational review
Operational review Nick Read Group Chief Financial Officer
Slide 12: Germany: improved commercial execution
Germany: improved commercial execution Service revenue growth % Mobile contract net adds 000s Fixed broadband net adds 000s Q3 Q4 Q1 Q2 Q3 14/15 14/15 15/16 15/16 15/16 101 105 235 245 93 (0.4) 196 70 66 Incl. KDG (1.2) 137 Incl. KDG 104 (1.8) (1.8) Incl. KDG (3.5) Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 14/1
Slide 13: Italy: continued recovery in trends, mobile back to growth
Italy: continued recovery in trends, mobile back to growth Service revenue growth % 4G customer adoption Millions Fixed broadband net adds 000s Q3 Q4 Q1 Q2 Q3 46 14/15 14/15 15/16 15/16 15/16 43 5.0 38 38 (0.3) 4.0 (2.0) (2.0) 2.8 2.7 24 (4.1) 1.2 (8.0) Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 14/15 14/15 15/1
Slide 14: UK: improving in fixed
UK: improving in fixed Service revenue growth % Mobile contract net adds 000s Fixed service revenue growth % Q3 Q4 Q1 Q2 Q3 14/15 14/15 15/16 15/16 15/16 0.2 0.2 98 94 90 83 (0.4) (1.3) 49 (0.5) (0.5) (5.7) (0.6) (0.7) (8.0) Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 14/15 14/15 15/16 15/16 15/16 14/15 14/15 15/
Slide 15: Spain: strong execution on mobile, fixed and TV
Spain: strong execution on mobile, fixed and TV Service revenue growth % Mobile contract net adds 000s Fixed broadband customers 000s Reported Ex. Handset financing Q3 Q4 Q1 Q2 Q3 92 2,958 14/15 14/15 15/16 15/16 15/16 83 78 1.0 0.7 2,879 2,851 54 2,810 2,776 (2.0) (3.3) (3.1) 14 (5.5) (7.8) (9.3) E
Slide 16: India: more promotional pricing in the quarter
India: more promotional pricing in the quarter Service revenue growth % Total customers and voice prices Data users and price changes Reported Ex MTRs Net adds (m) Voice prices (%) 3G data users (m) Total data prices (%) 23.8 25.9 14.7 14.7 19.4 22.1 13.2 4.8 5.1 5.4 16.6 11.7 1.6 2.8 10.6 9.2 6.9 1
Slide 17: Vodacom: strong momentum continuing
Vodacom: strong momentum continuing Vodacom service revenue growth % South Africa contract ARPU ZAR South Africa 4G customers Millions Q3 Q4 Q1 Q2 Q3 14/15 14/15 15/16 15/16 15/16 409 2.5 7.2 2.0 393 1.8 1.9 4.5 3.9 1.5 386 381 374 (0.2) (3.9) Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 14/15 14/15 15/16 15/16 15
Slide 18: Summary and Outlook
Summary • Sixth consecutive quarter of service revenue improvement • Strong performance in South Africa, improving trends in Germany and Italy • Project Spring on track and near completion • Delivering a differentiated network experience • Strong progress on unified communications; record broadband
Slide 19: Q&A
Q&A 19
Slide 20: Slide 20
Slide 21: Appendix
Appendix 21
Slide 22: Service revenue growth by market
Service revenue growth by market Q3 15/16 service revenue growth % AMAP +6.5% 21.3 Group +1.4% Europe -0.6% 18.1 7.3 7.2 5.1 3.4 2.3 0.6 0.2 (0.3) (0.4) (0.7) (1.3) (3.1) Turkey Ghana Egypt Vodacom Romania Ireland India Portugal NL Italy Germany UK Greece Spain Change QoQ (ppt) +1.1 +4.3 -3.4 +3.3 +
Slide 23: Service revenue bridge
Service revenue bridge £ Millions 9,789 255 12 47 69 9,169 (199) (59) (727) (18) Q3 14/15 FX M&A & one-off In-bundle Out-of-bundle Incoming MTR Fixed line and Other Q3 15/16 reported items carrier reported service service revenue revenue • M&A and one off items relate primarily to £21 million of ser
Slide 24: Project Spring KPIs
Project Spring KPIs Germany UK Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Deployment and experience 14/15 15/16 15/16 15/16 Deployment and experience 14/15 15/16 15/16 15/16 4G % outdoor population coverage 77% 78% 81% 84% 4G % outdoor population coverage 63% 68% 75% 79% % of data sessions >3Mbps 82% 82% 82% 84% % of
Slide 25: Project Spring KPIs
Project Spring KPIs Italy Spain Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Deployment and experience 14/15 15/16 15/16 15/16 Deployment and experience 14/15 15/16 15/16 15/16 4G % outdoor population coverage 84% 88% 91% 94% 4G % outdoor population coverage 75% 78% 80% 86% % of data sessions >3Mbps 92% 94% 92% 94% % of
Slide 26: Project Spring KPIs
Project Spring KPIs India Vodacom (South Africa) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Deployment and experience 14/15 15/16 15/16 15/16 14/15 15/16 15/16 15/16 Deployment and experience 3G % outdoor population coverage 90% 91% 94% 94% (targeted urban areas) 4G % outdoor population coverage 35% 41% 47% 54% % of d
Slide 27: Forward-looking statements
Forward-looking statements This presentation, along with any oral statements made in connection therewith, contains or may capital expenditures; slower than expected customer growth and reduced customer retention; contain “forward-looking statements” within the meaning of the US Private Securities L
Slide 28: More information
More information Visit our website for more information 2016 upcoming dates Prelim Q1 results results AGM 17 May 22 July 29 July www.vodafone.com/investor Contact us Follow us on Twitter ir@vodafone.co.uk +44 (0) 7919 990 230 @VodafoneIR For definitions of terms please see www.vodafone.com/content/i