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Vodafone: Q1 FY21 trading update

2020-07-25 10:29:49

 

Maintaining commercial momentum during lockdown, service revenue in line with our expectations

Q1 organic service revenue relatively resilient with a decline of 1.3%*, mainly due to COVID-19 impacts

Resilient performance in Germany with stable organic service revenue growth

Mobile contract customer loyalty improved year-on-year for a seventh successive quarter and record 429,000 NGN broadband customer additions in Europe

Europe’s leading tower infrastructure company, ‘Vantage Towers’, on track for IPO in early 2021

COVID-19 impacted sequential organic service revenue growth due to lower revenue from roaming and visitors, project delays and lower automotive activity in Business, and lower prepaid revenue in some smaller markets

On track to deliver at least €0.4 billion net opex reduction in Europe in FY21. Adjusted EBITDA outlook unchanged - remains 'flat to slightly down'

FY21 guidance for ‘at least’ €5.0 billion of free cash flow (pre-spectrum) reiterated

 

 

Nick Read, Group Chief Executive, commented:

 

“Our trading performance in the first quarter demonstrates the relative resilience of our operating model and focused delivery of our strategic priorities. Whilst we have seen the direct impact on our revenue from travel restrictions and business project delays, we have also seen increased usage in voice and data, alongside record NGN broadband customer net additions in Europe.

 

I am also delighted to introduce Vantage Towers as Europe’s leading tower infrastructure company. A year ago, I set out a three-phase plan for our towers to deliver industrial synergies from network infrastructure sharing, generate operational efficiencies by establishing a dedicated towers management team, and unlock value for our shareholders through the IPO of Vantage Towers, which is firmly on track for early 2021.

 

The role Vodafone plays in society has never been more important, particularly as the markets in which we operate continue to face challenging conditions. We have executed well in delivering on our social contract to provide fast and reliable connectivity for our customers. We will continue to work collaboratively with governments and policy makers to create the right environment for investment in essential services and ensure our customers receive the best overall experience.”

 

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