Vodafone Spain revenues fall 6%, but improves its margins in the first half of its fiscal year

Accelerate business acquisition on mobile and Lowi.

Vodafone Spain revenues fall 6%, but improves its margins in the first half of its fiscal year

Accelerate business acquisition on mobile and Lowi

Vodafone Spain's revenues have fallen by 6% during the first two quarters of its fiscal year (April-September) to 1,965 million euros, although the firm has maintained stable business profitability thanks to improved margins.

The company has recorded a stable adjusted gross operating profit (adjusted Ebitda) of 445 million euros with an improvement of 0.7 percentage points in reported terms and 1.4 in organic terms of its margins to 22.6%, according to has disclosed to investors.

The operator announced last September that it would link its rates to the consumer price index to contain the impact on inflation, a measure that is expected to have an impact in the coming quarters.

Service revenues have fallen by 4.5% in organic terms to 1,782 million euros. Among the reasons to which the company attributes this fall is the lower sale of wholesale services, high competitiveness and the reduction in the sale of equipment.

If the calendar year is taken into account, Vodafone has generated service revenue of 2,690 million euros between January and September in Spain, 6.3% less than in the same period of 2021.

The company has reduced its costs by 5.9% in this first fiscal semester to 1,965 million euros, thanks to the 12.8% drop in operating costs.

The company has also proceeded to disconnect 123,000 SIM cards linked to educational projects developed during confinement, which has had an impact on its user base which, discounting this effect, would have increased by 97,000 contract customers in the last six months, 69,000 in the last trimester.

Likewise, the firm has also increased its convergent rate base by 7,000 clients, which reaches 2.2 million, while it has ceded 10,000 television clients and 40,000 broadband clients.

Vodafone closed September in Spain with a base of 13.6 million mobile lines, 2.9 broadband customers, 2.21 million convergent customers and 1.5 million television customers.

The firm has highlighted that the new rate portfolio presented during the summer has reduced the cancellation rate ('churn' in the jargon of the sector) by just over 4%.

Similarly, Lowi has incremented by 152,000 customers its user base and already adds 1.7 million customers in full expansion of its distribution channels.

During the last quarter it has also launched Vodafone Energy, its green electricity marketer and has highlighted the "significant number of applications" of the Digital Kit managed.

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