Vodafone Romania revenues fall 21 percent in 09/10

Vodafone Romania saw total revenue slide to EUR 921.5 million in the period April 2009-March 2010, a decrease of 21 percent from the previous financial year. Service revenue fell by 20 percent year on year, to a total of EUR 891.4 million.

Vodafone registered 142,000 net additions in the fiscal year 2009/2010, taking it to a total of 9.73 million customers. The operator upped its closing customer base by 1 percent. Postpaid customers accounted for 38 percent and prepaid 62 percent of the total customer base.

EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortization) reached EUR 396 million from EUR 527 million in 2008/2009, a 25 percent year on year decrease. EBITDA margin reached 43 percent this financial year.

“Our efficiency-oriented strategy helped us to maintain a high EBITDA margin, only 3 percent lower than last year. This allowed us to continue to invest significantly in Romania, a recent example being the launch of 3G services in the 900 MHz frequency,” said Liliana Solomon, Vodafone Romania CEO.

On a quarterly basis, service revenue slumped by 10 percent in January to March, compared to the previous quarter, while the customer base increased by 67,000.

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“Although the revenue decrease rate has slowed down quarter to quarter, we cannot yet talk about a recovery in the market,” added Solomon.

Total ARPU (Average Revenue per User) for the 12 months until March 31, 2010, was EUR 7.7 for the year ending March 31, 2010, as compared to EUR 9.8 at the end of March, 2009, corresponding to a decline of 21.3 percent year on year. Mobile ARPU consolidated for the same period was EUR 7.6, down from EUR 9.7 in the previous year, or a 21.1 percent decline.

Otilia Haraga