Vodafone Australia cops losses but grows customers, revenue

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Vodafone Australia cops losses but grows customers, revenue

Vodafone Australia's chief executive is positive about the company's outlook, internet offering and 5G future after revealing a significant boost in revenue and subscribers.

Despite the company posting a $92.3 million loss in the six months to 30 June 2018, compared to a loss of $81.5 million in the previous year, Iñaki Berroeta said he was focused on the long game. 

“I’m very proud of our track record of reliability, stability and a fantastic customer experience,” Berroeta said.

“Over the next six months, we’ll continue to evolve our mobile network, including 5G preparations; grow our Vodafone NBN business; and drive further value and product simplification for customers.”

Company revenue grew 7 percent to $1.77 billion for the period, up from $1.65 billion last year. The telco's customer base is also up 5.2 percent, or 294,000, now sitting at 5.98 million.

Vodafone attributed its losses to increases in depreciation and amortisation costs following spectrum licence purchases in 2017 and accounting changes. Those costs came in at $428.7 million for the period, up from $391.2 million the previous year.

Acting chief financial officer Sean Crowley said the latest set of results were in line with expectations.

Vodafone also used its mid-year results announcement to highlighted changes to its Red Plus plans and its decision to stop charging for excess data, as well as the expansion and improvement of its NBN services.

Crowley said the company’s NBN offerings had also performed to expectations since joining the network with fixed broadband products in December 2017.

“Our Red Plus plans, which remove excess data charges, are already taking a strong share of connections and upgrades. Growth also continues to be driven by our popular $5 roaming and no lock-in handset plans,” Crowley said.

“After a measured launch to ensure the customer experience is right, we have now ramped up distribution and marketing of fixed broadband services. Connections are going well, with customers attracted to the peace of mind offered by VHA’s 4G back-up modem.”

In May, Vodafone started offering mobile plans with unlimited data, starting at $60 per month with 30GB of uncapped download speeds before also being capped at 1.5Mbps.

The telco also expanded its indoor mobile coverage between December and January after adding 128 new mobile sites across selected metro, outer-metro and regional areas across Australia, servicing an additional 140,000 Australians.

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