Irish users generate the highest ARPU for Vodafone

31 Jan 2007

UPDATE: Average revenue per user (ARPU) in Vodafone’s Irish market decreased from €46.90 at the end of September to €45.60 at the end of December.

It has also emerged that the company is seeking 100 voluntary redundancies at its Irish operations.

The figures reveal that Vodafone Ireland’s customers pay the highest rate of ARPU than any other European countries.

Compared with Ireland’s €45.60 ARPU rate, Vodafone customers in the UK yield an ARPU of €35.64. In Germany, ARPU stands at €20.90. It is €29.35 in Malta, €31.70 in the Netherlands and in Portugal Vodafone’s customers return an ARPU of €22.80.

Irish contract mobile phone customers are also generating the highest ARPU for Vodafone at €94.50, which contrasts sharply with €65.99 in the UK, €51.30 in Spain, €71.10 in Italy and €57.80 in Portugal.

Irish prepaid mobile phone customers of the company also generate the highest rates of revenue per user for Vodafone at €27.90, compared with €14.34 in the UK, €16 in Spain, €9.80 in the Netherlands and €13.20 in Portugal.

The latest key performance indicators (KPIs) from Vodafone reveal that prepaid customers now account for 74pc of the company’s Irish user base.

By the end of December Vodafone Ireland had some 2.1 million subscribers, up 59,000 since the end of September.

Overall, Vodafone’s mobile revenues worldwide grew 6.1pc in the third quarter but growth stood at less than 1pc in Europe.

It is understood that the company’s European performance has been impacted by a cut in rates imposed by the telecoms regulator in Germany.

“These KPIs are very much in line with expectations and show that we are continuing to make progress in executing our strategy,” said Arun Sarin, Vodafone’s chief executive.

“I am also pleased to announce today that we have 200 million proportionate customers globally and we are grateful for their confidence in us. This is both an important milestone for Vodafone and a great achievement for our people,” Sarin said.

In terms of the 100 job cuts at the company’s 1,800-strong Irish workforce, it emerged before Christmas that the company was performing a strategic review of its Irish operations. However, at the time it was feared that 500 jobs would be cut.

A spokesperson for Vodafone stated: “As we confirmed in December, an internal efficiency review is ongoing. Its aim is to determine the appropriate organizational structure needed to meet the increasing competitive challenge and new market opportunities we face.

“We can confirm that we wrote to the Minister advising that the outcome of this review may result in approximately 100 voluntary redundancies.

“We are currently in consultations with the relevant Trade Unions and Employee Representatives and will update on the full outcome of this in late February,” Vodafone stated.

By John Kennedy