Vodafone’s service revenue in Italy in fiscal 3Q16
Earlier, we looked at the performance of Vodafone (VOD) in the UK and Germany during fiscal 3Q16. Now, let’s move to another key market for Vodafone, Italy (EWI). Vodafone’s service revenue in Itay fell ~8.8% YoY (year-over-year) to reach ~0.93 billion pounds. According to the company, organically (excluding currency and merger and acquisition impacts), Vodafone’s service revenue fell ~0.3% YoY in Italy during the quarter. This performance was better than the comparable ~2% YoY decline in service revenue in fiscal 2Q16.
The mobile component of Vodafone Italy limited the YoY decline in service revenue during fiscal 3Q16. Vodafone’s fixed-line service revenue in Italy dropped ~11% YoY to ~0.15 billion pounds during the quarter.
On the mobile side, Vodafone’s service revenue went down by ~8.8% YoY to ~0.74 billion pounds in fiscal 3Q16. Earlier in fiscal 2Q16, Vodafone’s service revenue in this market of mobile and fixed-line components had decreased YoY by ~13.2% and ~5.7%, respectively.
Vodafone’s mobile customer metrics in Italy in fiscal 3Q16
Vodafone’s mobile ARPU (or average revenue per user) in Italy grew ~5.3% YoY to ~14 euros in fiscal 3Q16. This growth came from prepaid customers. Vodafone’s prepaid ARPU in Italy increased ~16.5% YoY to ~12.7 euros. In this market, Vodafone’s contract component ARPU declined ~18% YoY to ~19.6 euros in fiscal 3Q16.
During fiscal 3Q16, Vodafone’s mobile customers in Italy decreased ~4.3% YoY to ~24.4 million. On a net basis, the company lost ~15,000 contract customers in Italy. Meanwhile, the net customer losses in the company’s prepaid component hit ~251,000.
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