Vodafone’s total revenue grew 2.1% between April and September due to the sale of handsets


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Vodafone Spain has reported this Tuesday that in the first semester of its fiscal year, between April 1 to September 30 of this year, global revenue of the operator led by Colman Deegan have grown 2.1% reaching 2,090 million euros, thanks to the sale of terminals and devices. If it is considered alone billing for services, this has fallen by 0.6% to 1,866 million euros despite the recovery of roaming and tourism due to the progressive lifting of restrictions. The operator has attributed this drop in service revenue to the strong competitiveness of the Spanish market and the weight of the low – cost.

In this time, the operator has closed an agreement with the unions to execute an ERE of 442 people, which mainly affects the network of Vodafone’s own stores (about 34, 5% of the total of those linked to the operator) and that will be subrogated to distribution.

In this line, the Ebitda of the operator has fallen by 0.6% to 445 million euros during the first half of its fiscal year (April-September) due to lower service revenues, higher advertising costs and television content. What from the teleco have compensated with the start-up of «Optimization initiatives, generation of efficiencies and the advancement of digitization ”. For its part, the Ebitda margin has also fallen -0.6 percentage points compared to the same period a year ago.

The operator has launched since the beginning of its fiscal year, which begins in April, its strategic plan ‘Restart’. With it, the operator seeks the development of the areas of innovation, digital and new technologies, to promote differentiation and the capture of new business opportunities. In this sense, the operator led by Colman Deegan has reorganized its executive committee with the promotion of new business units as well as decided the ‘subrogation’ to the distribution (or sale) of its own stores – 34 establishments, 5% of all the network linked to the operator- expanding the reach of ‘Lowi’ its low cost brand.

All this, concretized in the

recently agreed restructuring with unionsand that will mean the departure of 442 people, 67 less than initially planned, with compensation of 50 days per year worked up to a maximum of 33 monthly payments plus a linear bonus of 6,000 euros for those with a fixed gross salary equal to or less than the 30,000 euros.

Lowi’s ‘pull’

Regarding commercial activity, between April and September, Vodafone has seen its mobile customers increase by 67,000 lines to 11.5 million driven by strong demand from the public sector. With regard to broadband, the number of customers has fallen by 82,000 to 3.1 million and television customers did so by 38,000 to 1.6 million. On the other hand, the low cost brand of the operator ‘Lowi’ which is already marketed in all Vodafone stores has seen its mobile customers increase by 144,000 to 1.3 million. From the teleco they have indicated that between April and September the commercial activity has been affected by the “aggressiveness of the low – end” and the strong repositioning of rates.

Contribution to the Spanish economy

Regarding the contribution of the company’s activity to the Spanish economy, Vodafone has estimated it at 4,879 million euros according to the ‘Integrated Report 2020-21’. The direct economic contribution was 3,952 million uros, of which 3,428 million went to companies and suppliers, 252 million to people and employees. Plus others 272 million to public administrations and, above all, to the payment of taxes and fees.

From the teleco they have also highlighted that between April and September they have invested 699 million euros in mobile infrastructure and fixed, as well as the commercialization of new rates for mobile and home connectivity aimed at groups that are beneficiaries of the Minimum Living Income (IMV) and the unemployed under 30 years of age.

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