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Analyzing Vodafone’s Performance in Germany

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Service revenue in Germany

In this part of the series, we’ll look at Vodafone’s (VOD) performance in Germany (EWG) in fiscal 1H17. Germany was one of the markets in which Vodafone successfully executed its more-for-more offerings of larger data bundles.

Vodafone’s revenue in Germany fell ~0.8% YoY (year-over-year) to reach ~5.3 billion euros in fiscal 1H17. Meanwhile, Vodafone Germany’s service revenue rose ~2.3% to ~5 billion euros YoY, driven by a broad-based improvement in its performance across the board.

On an organic level, excluding currency and merger and acquisition impacts, Vodafone’s revenue fell ~0.8% YoY, and its service revenue rose ~2.3% YoY in Germany during fiscal 1H17.

During fiscal 1H17, Vodafone’s mobile service revenue in Germany rose ~0.5% YoY to ~3 billion euros, driven by consumer contract trend improvements, a stabilizing ARPU (average revenue per user), and an increased customer base. 

Meanwhile, Vodafone’s fixed-line service revenue in Germany rose ~5.3% YoY to ~2 billion euros during the period, driven by a return to growth in its DSL (digital subscriber line) and further momentum in its Cable segment.

Vodafone Germany’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin rose to 34% in fiscal 1H17 from 32.7% in fiscal 1H16, driven by revenue growth and cost efficiencies.

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Vodafone’s mobile customer metrics in Germany

Vodafone Germany had ~30.5 million mobile customers at the end of fiscal 1H17. In fiscal 2Q17, on a net basis, the company added around 20,000 contract customers in Germany. The company also saw prepaid customer additions of ~218,000 in Germany during fiscal 2Q17. Vodafone Germany had ~6 million fixed broadband customers at the end of fiscal 1H17.

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