Vodafone increases network investments to give its European fortunes a boost

Vodafone's service revenue in Europe is dropping, but the company expects a return to economic growth there

Vodafone now plans to invest £7 billion (US$11.1 billion) in network and service improvements to turn around its sagging service revenue in Europe, the mobile operator said as it announced its results for six months to Sept. 30.

Vodafone's group revenue for the six months to Sept. 30 was £22 billion, down 3.2 percent year on year excluding the effects of acquisitions, discontinued operations and exchange rate fluctuations. Net income was £18 billion, thanks in large part to a £14.2 billion income tax credit. For the corresponding period a year earlier, Vodafone reported a £2 billion net loss.

In general, Vodafone performed well in emerging countries, driven a higher smartphone penetration and data usage, but the situation in Europe remained very tough, it said in a statement. For example, Vodafone's service revenue in Italy dropped by 16.7 percent excluding acquisitions, discontinued operations and exchange rate fluctuations, and in Spain it dropped by 13.4 percent on the same basis, while the service revenue in India grew by 13.5 percent.

However, Vodafone was encouraged by an expected return to economic growth in Europe over the next two years. The economic outlook for Europe, coupled with the transition to 4G, makes this the right time for Vodafone to pursue further development and differentiation, it said.

Vodafone's plan is to invest £7 billion in mobile and fixed networks over the next two financial years. The operator will use the funds to accelerate its roll out of LTE. Small cells and Wi-Fi will also be used to improve network performance, Vodafone said. The operator will increase its DSL and fiber footprint in Europe, and in the enterprise sector it will invest in a build-out of its hosting capabilities. Just like many other operators it is investing in machine-to-machine services, as well.

The last six months have been a very busy time for Vodafone, which closed the acquisition of Kabel Deutschland and announced it was selling its share in Verizon Wireless for US$130 billion.

Send news tips and comments to mikael_ricknas@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersVodafone Groupfinancial resultsinvestments

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?