But share price largely unaffected in early trading
Vodafone’s fortunes took a bit of dive in the three months to June, latest figures reveal, with service revenue down 3.5 per cent amid increased competition in Europe – especially in the southern part of the continent, where in Italy alone service revenue dived by more than 17 per cent.
In its quarterly trading update released today (19th June 2013), the UK operator revealed that group revenue, including joint ventures, came in at £11.1 billion for the period while service revenue was £10.2 billion.
Even in Britain, its home turf, Vodafone’s service revenue fell by 4.5 per cent, mainly due to price pressure.
The company also said that against a background of “significant revenue pressures” in Europe it continued to seek cost efficiencies through a range of initiatives including further network sharing agreements (most recently with Wind in Greece), offshoring of business functions to shared service centres, centralisation of procurement costs and ongoing reductions in support function costs.
One of the few bright spots was the income generated from Vodafone’s 45 per cent stake in US operator Verizon Wireless, where revenues had gone up by 7 per cent.
But the quarterly update was largely in keeping with market expectations and, in early trading in London today, Vodafone’s shares were up by just under 1 per cent.
* Nokia revenues witnessed a 22 per cent drop in year-on-year revenues to £9.9 billion in the first half of 2013, it was also revealed, despite encouraging sales of its flagship Lumia range.