Irish Vodafone customers spend more

26-01-2005

by Deirdre McArdle

Vodafone's Irish customers continue to out-spend their European counterparts according to upbeat 'key performance indicators' from the mobile operator.

On Wednesday Vodafone released its Key Performance Indicators (KPIs) for the quarter ended 31 December which showed that Irish Vodafone customers, who have a reputation for being among the group's top spenders, now spend EUR602 per year on Vodafone's mobile services, compared to EUR596 three months ago.

The firm said that average revenue per user, or ARPU, measured on a 12-month rolling basis, came to EUR1,186 for contract customers, up from EUR1,170 in the last quarter. ARPU for pre-pay customers grew to EUR370, up from EUR366 in the last quarter.

"We are pleased with Vodafone Ireland's performance in what has proved to be a very competitive Christmas period and shifting market landscape. The success of Vodafone's strategy in launching innovative services and offering value along with high quality to our customers is reflected in our ARPU figures and our customer numbers," said Gerry Fahy, Strategy Director with Vodafone Ireland, in a statement.

Elsewhere in Europe ARPU figures disappointed. In the UK, Vodafone reported that its customers now spend on average STG314 per year, down from STG318 in the previous quarter. In Germany too customer spending was down, from EUR305 to EUR303, while Italian customer spending remained stable at EUR360. Focusing on high-value customers in the Spanish market paid off for Vodafone as ARPU there rose to EUR408 from EUR400.

Vodafone Ireland said it signed up 39,000 new customers during the quarter, bringing the total Irish customer base to 1.91 million. Overall, during what Vodafone has said was its best quarter in four years, the company now has 151.8 million subscribers globally, an increase of 5.4 million during the quarter.

"Overall these KPIs are in line with our expectations and we maintain our guidance for the full year to March 2005," said Vodafone chief executive, Arun Sarin, in a statement.

In Ireland Fahy made note of the launch of 3G handsets for consumers during the quarter saying that "the uptake of 3G handsets has exceeded initial targets and the consumer interest in 3G is expected to grow steadily during the year as Vodafone introduces new products and continues to invest heavily in network rollout."

Reference was also made to the European Commission's decision to allow mobile virtual network operators (MVNOs) into the Irish market with Fahy re-iterating Vodafone Ireland's original pledge to appeal the decision if ComReg did not change its position on the issue.