The ‘telecos’ operator, which started the year with a -9.3% drop in service revenues, has cut the decrease to -2.7% in the January-March quarter, the last quarter of its fiscal year and improves its ebitda, which grows 8.2% in the second half of the year.
Vodafone Spain, a subsidiary of the British telecommunications group, has confirmed the improvement in its commercial and financial performance in the results of the fourth quarter of its fiscal year (January-March) that closes on March 31. The group recorded service revenues of 972 million euros, representing a 2.7% drop compared to the results of the fourth quarter of the previous year.
The figure represents a continuation of the improvement that it had been showing throughout the year, since in the first quarter it registered a drop in service revenues of 9.3%, in the second of 8%, in the third of 6, 5% and 2.7% in the room.
Revenues from services for the entire year rose to 3,904 million, which represents a decrease of 6.7%, weighed down mainly by the first two quarters.
Total revenue of $ 4,296 million, which also includes mobile phone sales, was down 8%.
What was most noticeable was the recovery in profit margins, as ebitda grew in the second half to 8.2%, representing an improvement of 19.5 percentage points compared to the 11.3 drop. % of the first semester. For this reason, the group’s EBITDA margin grew by 1.5 percentage points at the end of the year, an evolution that the operator attributes to “the success of the new commercial policy, the reduction of operating expenses, the refocusing of the content strategy TV, the implementation of the new company structure and advances in the digitization process, with an organizational model and a more agile culture and better prepared to compete in the current market context more efficiently. “
More contract, fiber and TV clients
The contract mobile, fiber and television portfolios consolidated the growth trends in the fourth quarter. In this way, Vodafone Spain’s mobile contract customer base increased by 51,000 to 11,348,000. On the other hand, the total portfolio of mobile clients amounts to 13,483,000.
Fiber customers increased by 28,000 to 3 million, representing 93.2% of Vodafone Spain’s fixed broadband customers.
For its part, Vodafone TV grew by 41,000 new customers, despite not having the content of soccer, which it resigned two years ago, closing the year at 1.4 million. Thus, Vodafone closed the year with a positive balance of 93,000 Vodafone TV Clients.
It has also highlighted the strong growth of Lowi, the group’s low-cost brand, which has boosted its customer growth by 50% compared to the end of the previous year.
2.4 million lines with unlimited data
At the end of the fiscal year, 12 months after the launch of the first family of rates with unlimited data, the company consolidates 2.4 million lines that include unlimited data.
Vodafone Spain has indicated that the unlimited rates have an NPS (the customer satisfaction ratio) 10 points higher than the rates without unlimited data. In addition, they significantly increase data consumption (4 times more than users without unlimited data) and according to the group “reveal a latent demand in relation to the unrestricted consumption of data and content on the move.”
Vodafone Spain’s service revenues in the Large Companies and Public Administrations segment increased by 7% compared to the same period of the previous year. The company points out that the availability of the 5G network, which Vodafone launched in June 2019 “has been key to Vodafone’s consolidation in the Public Administrations sector, as well as access to major competitions such as that of the Ministry of Defense, the Generalitat de Catalunya, the Basque Government, the Barcelona Provincial Council or the Madrid City Council, which was also joined by the award of state mobile communications in phase II of CORA at the beginning of September “.
Likewise, the SME segment has also increased service revenues by 6% compared to the same quarter of the previous year.