Why Vodafone’s Service Revenue in Turkey Saw a Sharp Rise



Vodafone’s service revenue in Turkey in fiscal 3Q16

Earlier, we looked at Vodacom’s performance during fiscal 3Q16. Here, let’s look at Vodafone’s (VOD) performance in Turkey (TUR). Vodafone’s service revenue in Turkey fell ~1.9% YoY (or year-over-year) to ~0.41 billion pounds. In terms of organic (excluding currency and merger and acquisition impacts) growth, Vodafone’s service revenue grew robustly by ~21.3% YoY in this market during the quarter. Note that as per Vodafone, earlier in fiscal 2Q16, this service revenue growth metric was ~20.2% YoY.

During fiscal 3Q16, Vodafone’s mobile service revenue in Turkey decreased by ~2.5% YoY to ~0.38 billion pounds. Meanwhile, the fixed line component limited the YoY decline in Vodafone’s service revenue in this geography during the quarter. It grew ~23.1% YoY to ~16 million pounds in fiscal 3Q16.

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Vodafone’s mobile customer dynamics in Turkey

During fiscal 3Q16, the growth trend in Vodafone Turkey’s mobile subscribers continued. This base grew at ~6.4% YoY to ~21.9 million in fiscal 3Q16. Earlier in fiscal 2Q16, Vodafone mobile subscribers in Turkey had increased by ~4.6% YoY.

In terms of net additions, the telecom player added ~318,000 contract customers and lost ~11,000 prepaid customers in this market during fiscal 3Q16.

Vodafone’s mobile ARPU (or average revenue per user) in this market grew ~14.2% YoY to reach ~25.8 Turkish liras in fiscal 3Q16. Here, the YoY ARPU growths of contract and prepaid components were ~10.8% and ~9.2%, respectively, during the quarter.

You can consider getting diversified exposure to Vodafone and some of its peers by investing in the FTSE All-World ex-US ETF (VEU). Vodafone, BT Group (BT), Deutsche Telekom (DTEGY), Telefonica (TEF), and Orange (ORAN) made up ~1.6% of VEU at the end of December 2015.


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