Vodafone: Mobile phone giant reveals increase in UK sales after securing more mobile and broadband customers

It said it gained thousands more contracted customers during the quarter for its mobile network, including 26,000 for its spin-off digital brand Voxi, and also grew its broadband customer base. Across the global business, total revenues grew by 4.2 per cent year on year on an organic basis – the firm’s preferred sales measure. But reported sales dipped by 2.3 per cent.

It was a less positive picture for Vodafone’s biggest market, Germany, where service revenue crept up by just 0.3 per. The firm said this slow rise was partly due to it telling another one million broadband and TV customers it was increasing prices, which led to more people switching providers. Vodafone is planning to merge its UK business with Three UK.

It is also planning to cut about 11,000 jobs over three years as part of efforts to simplify the global business, which could affect markets worldwide. About a third of the role reductions have already been completed.

The proposed merger of the networks is set to be formally investigated by the UK’s competition regulator over concerns it could substantially reduce options for mobile customers. Vodafone says the move will give customers more choice and value, and drive more competition in the market. The firm has also been looking to free up cash and improve its financial performance by selling off parts of the business, including its Spanish arm.

Chief executive Margherita Della Valle said Vodafone is in “active discussions” in Italy over a possible deal.

She said: “We maintained good service revenue momentum in the third quarter across both Europe and Africa, supported by a further acceleration of Vodafone Business, with our cloud and Internet of Things services growing over 20 per cent.

“Our announced transactions in the UK and Spain are progressing well, and we are in active discussions in Italy.

“We’ve also begun strategic partnerships with Microsoft and Accenture to fast-track our transformation.”

Richard Hunter, Head of Markets at interactive investor, commented: “Turning around a super tanker is never an easy task, and for Vodafone years of underperformance are being addressed, even though any transformation is still in its early days.

"There have been some big strategic calls of late which should improve the group’s fortunes, leading to a more simple and leaner organisation.

"The planned disposal of the Spanish business, a merger with Three UK, which remains subject to regulatory and shareholder approval, and the reduction of 11000 jobs over a three-year period will all contribute to the new look.”

"At the same time, the group is looking to revisit the future of the Italian business, although the latest blow to the share price came last week after the announcement came that Vodafone had rejected a merger proposal in the region with Iliad of France.”