Vodafone added 37,000 new consumer contract customers in Q3 of its latest financial year.
However, this growth was offset by business contract disconnections and the reclassification of part of the mobile customer base to the IoT segment. As a result, the total contract customer base saw a net increase of just 1,000 in Q3.
Fixed broadband net additions reached 72,000 during the quarter, driven in part by the September launch of the One Touch Switching service, which simplifies the process of switching broadband providers. Fibre coverage has now expanded to 18.4 million households, with speeds of up to 2.2Gbps in more locations.
Vodafone’s shares dipped more than six percent following a decline in its German market performance, where service revenue fell by 6.4 percent—worsening from a 6.2 percent drop in the previous quarter. This decline was driven by changes in pay-TV laws, which led to customer losses, as well as intensified competition in the mobile sector.
Albie Amankona, analyst at Third Bridge, said:
“Vodafone’s smaller broadband base, compared to its key rivals, presents an opportunity to bundle mobile and broadband services to improve customer retention. However, Vodafone’s biggest weakness remains its lack of exclusive content, putting it at a disadvantage against BT-EE and Virgin Media O2, which bundle mobile, broadband, and proprietary TV services into a seamless package. While Vodafone licenses content through partnerships with Sky and Netflix, it does not own or control exclusive programming that could help retain customers. As competitors continue using content as a key differentiator, Vodafone risks losing mobile subscribers to providers with stronger bundled entertainment and connectivity services. To stay competitive, it must either deepen content partnerships or find new ways to integrate media into its service plans.”
