Australia remains black spot for Vodafone

VHA loses 108,000 mobile customers in quarter ending 31 March.

Vodafone Hutchison Australia continued to lose customers and revenue in early 2013, with parent company Vodafone singling the business out as the black sheep among other its other units in the Africa, Middle East, Asia Pacific (AMAP) region.

VHA is a 50:50 joint venture between Hutchison Telecommunications and Vodafone.

Vodafone lost 108,000 mobile customers in Australia in the quarter ending 31 March, it said. Overall, the Vodafone group’s profits tanked 90 per cent, mainly due to economic problems in Europe.

“Australia continued to experience steep revenue declines on the back of ongoing service perception issues and a declining customer base,” Vodafone said in its statement

“There has been a strong focus on network improvement and arresting the weakness in brand perception.”

The results did not break down the exact revenue decline for Australia, but Vodafone said Australia and New Zealand were the only markets in the AMAP region that did not experience service revenue growth, it said.

The AMAP regions combined saw organic revenue increase 3.9 per cent to A$16.3 billion.

Last week, Optus also reported revenue declines in the quarter, declaring the entire mobile market as stagnant.

Optus chief country officer, Kevin Russell, said revenue for the industry has fallen for the last four quarters due to slow customer growth and dropping average revenue per user.

However, in half-year results reported in February, Telstra showed rising mobile revenue.

All three Australian carriers are spending billions upgrading their networks to high-speed 4G LTE services. Vodafone plans to launch its 4G network this June.

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Tags Vodafone Hutchison Australia

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