Vodafone’s (VOD) Q1 2016 Conference Call

posted in: Earnings Call, Notes | 0

Vittorio Colao – Chief Executive Officer

Organic service revenue is up

“Group organic service revenue grew 2.2% to €12.3 billion. This follows an underlying 1.8% growth in Q4.”

A good data story

“Data story is good, but what about data monetization will ask some of you?…The strategy is simple. We charge a little bit more and offer a lot more value whether it’s more data, worry-free roaming, better services, extra options for the customers, so much more for more.”

Adopting a different strategy that suits each market

“The solid early momentum we’ve seen our Red tariff schemes had this pricing change reinforces the point that these markets are distinct, and we believe that our two tier strategy is working…we would always say we take a market-by-market approach given the substantial differences between the countries…”

Pokemon will not change the future of Vodafone

“On Pokemon Go, if you’re interested, unfortunately the average utilization of data of one hour of you chasing the monsters, so whatever you call them, is only 20 megabyte per hour. So, while it is a great thing to talk about and to do from a usage perspective, Pokemon Go will not change the future of Vodafone but we are all very amused by this thing.”

In sum, It was a good first quarter

“…we have made progress during first quarter, this first quarter of the financial year. As we said, good performance in Germany, Spain and Italy, offsetting the challenges that we are working very hard to address in the UK, the much more-for-more propositions working on improving ARPU and growth momentum in AMAP remains strong with good performance in South America, Turkey, Egypt and ongoing recovering in India.

Data, broadband and enterprise to drive growth

“And finally, as I said in my presentation, we continue to have the strategy centered on mobile data, fixed broadband, and the enterprise and this continues to be driving growth for the company.”

Nick Read – Chief Financial Officer

Better margins ahead

“Beyond Q2, we continue to expect to make steady progress on our underlying top line growth in second half of the year. And as we begin to lap the higher OpEx base created by projects spring and our fit-for-growth initiatives accelerate, we expect this improved growth to translate into higher EBITDA growth. So for EBITDA, we expect a higher weighting of growth in H2 versus H1.”