Report Overview

Vodafone UK: some signs of life but an uncertain road to recovery

Vodafone’s newfound focus on performance improvement is showing signs of delivering – more on the cost than revenue side. Tower sharing has the potential to ultimately enhance European cashflow by 10%

The revenue picture is more mixed with churn improving but a very varied operational picture across its major European markets

Although Vodafone highlights the potential for German cable to drive growth post Liberty Global deal completion, their current 0.4% growth in Germany does not give cause for optimism

Contents

Tower sharing can enhance shareholder returns

Slight improvement in mobile, fixed hardly growing

Italy and UK bounce, Germany and Spain concerning

Signs of some progress on churn; convergence not helping

UK – mobile surprisingly better, fixed flat-lining

Germany – still lackluster: mobile in decline, fixed still slow

Italy – better but still a touch disappointing

Spain – operational metrics still very concerning

List of charts/tables

Figure 1. Vodafone top 4 markets service revenue growth

Figure 2. Vodafone ‘top 4’* mobile service revenue growth

Figure 3. Vodafone tower/network share deals

Figure 4. Vodafone Europe organic service revenue growth

Figure 5. Vodafone Group service revenue growth

Figure 6. Vodafone mobile service revenue growth in the ‘top 4’ markets

Figure 7. Vodafone fixed service revenue growth in the ‘top 4’ markets

Figure 8. Vodafone vs T-Mobile ARPU growth

Figure 9. Vodafone ‘top 4’ markets contract churn

Figure 10. Correlation between convergence and churn in ‘top 4’ markets

Figure 11. UK operational and financial metrics

Figure 12. UK fixed performance

Figure 13. UK contract net additions (000)

Figure 14. UK service revenue growth by operator

Figure 15. Germany operational and financial metrics

Figure 16. Germany fixed performance

Figure 17. Germany contract net additions (000)

Figure 18. Germany service revenue growth by operator

Figure 19. May 2019, Iliad’s pricing compared to the other MNOs (€)

Figure 20. Italy operational and financial metrics

Figure 21. Italy fixed performance

Figure 22. Italy service revenue growth by operator

Figure 23. Italy total subscriber net additions (000)

Figure 24. Italy contract net additions (000)

Figure 25. Spain operational and financial metrics

Figure 26. Spain fixed performance

Figure 27. Spain mobile service revenue growth by operator

Figure 28. Spain total net additions (000)

Figure 29. Spain contract net additions (000)