(Alliance News) - Vodafone Group PLC on Friday said revenue growth in the first quarter of its financial 2021 was hurt by the Covid-19 crisis, driven by lower revenue from roaming and visitors, project delays and lower prepaid revenue in some smaller markets.
The FTSE 100-listed telecommunications provider said, in the first quarter ended June 30, total revenue slipped 1.4% to EUR10.51 billion from EUR10.65 billion a year ago and was down 2.8% on an organic basis. However, service revenue rose 1.3% to EUR9.11 billion from EUR8.99 billion, though was down 1.3% on an organic basis.
Vodafone said it was on track to deliver at least EUR400 million net operational expenditure reduction in Europe in financial 2021. It added that its outlook for adjusted earnings before interest, tax, depreciation, and amortization is unchanged, remaining "flat to slightly down". It reiterated its guidance for full-year free cash flow of at least EUR5.0 billion.
"Our trading performance in the first quarter demonstrates the relative resilience of our operating model and focused delivery of our strategic priorities. Whilst we have seen the direct impact on our revenue from travel restrictions and business project delays, we have also seen increased usage in voice and data, alongside record NGN broadband customer net additions in Europe," said Chief Executive Nick Read.
In a separate statement, the -based company said it will list its Vantage Towers infrastructure business in Frankfurt in early 2021.
Vantage Towers is "Europe's leading tower infrastructure platform", Vodafone said, with over 68,000 towers across 9 markets. It added that Vantage Towers has a senior management team is fully in place, led by Chief Executive Vivek Badrinath and Chief Financial Officer Thomas Reisten.
The company added that there is the potential to add its 50% stake in the Cornerstone Telecommunications Infrastructure Ltd portfolio to Vantage Towers.
"We have a strong platform to capture growth opportunities in connectivity across Europe, leveraging our long-term arrangements with leading operators. Today I am also pleased to announce the merger of Vodafone's and Wind Hellas' towers businesses in Greece, which creates the leading tower infrastructure company in Greece," Badrinath said.
Shares in Vodafone were trading 4.7% lower at 122.78 pence each on Friday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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