Vodafone NZ revenue per customer static

By NZPA

Wednesday 15th November 2006

Vodafone New Zealand has reported static revenue per customer in results for the three months to September 30.

Figures released today show the company's average revenue per user (arpu) was $46.60, unchanged from the June quarter, and lower than the $51 arpu in the September 2005 quarter.

Voice minute usage on the network for the quarter was unchanged from the previous quarter at 597 million, but up on the year ago figure of 559 million.

Net customer additions for the period were 11,000 -- lower than 32,000 in the June quarter and 27,000 in the September 2005 quarter.

Acting chief financial officer John Tombleson said the lower than usual number of additions was a result of Vodafone writing off 23,000 Prepay accounts.

Total customer numbers were 2.11m from 2.10m in the June quarter and 1.96m a year ago.

Vodafone said it had a 54.5% share of the mobile market, from 54% a year ago.

Tombleson said that with 93% of New Zealanders now owning a mobile phone, growth would come from increased usage.

Vodafone was encouraging that by providing new services and from next year customers would be able to use their mobiles as home phones.

While the company had a 54.5% customer share of the mobile market, it had just 21% of the total telecommunications market, Tombleson said.

Vodafone aimed to meet its customers' total telecommunications needs. Steps in that strategy included the purchase for $41m last month of ihug, along with the Commerce Commission determination allowing the company to plan a local service.

Rival Telecom's results for the September quarter, released earlier this month, put its total arpu per month, including interconnection, at $45.70 from $47.20 a year earlier.

Telecom put its total connections at 1.77m up 68,00 from the previous quarter.

Overnight, Vodafone New Zealand's parent Vodafone Group Plc posted half-year earnings that topped forecasts and raised some of its full-year expectations.

But a knock to its goodwill left it with a net loss of Stg4.55 billion ($NZ13.3 billion).

British-based Vodafone, the world's biggest mobile phone company outside China, said earnings before interest, tax, depreciation and amortisation (ebitda) for the first-half to September 30 rose to Stg6.24 billion, well ahead of forecasts of between 5.98 billion and 6.19 billion.

Underlying earnings per share also came in well ahead of the average market forecast at 5.98 pence, while revenue was in line with the average market forecast at Stg15.6 billion. But the group unveiled a surprise Stg8.1-billion knock to the goodwill value at its German and Italian units, blaming higher interest rates along with pricing and continued regulatory pressures in the German market.

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