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Europe price pressure hits Vodafone

Vodafone results - £3 billion H1 loss
Vodafone results - £3 billion H1 loss

Mobile operator Vodafone Ireland added 29,000 customers in the third quarter of this year, bringing its total customer base to just over 2.1 million.

But the money it is making from each customer - as measured by average revenue per user (ARPU) - continued to fall. Monthly ARPU in the quarter was €46.90, compared with €53.10 in the same period a year earlier.

Irish Vodafone customers used up 225 minutes and sent 114 text messages each month, in the three month period, compared with a Vodafone European average of 137 voice minutes and 59 text messages.

The company said that In the third quarter 68,000 Irish customers subscribed to the Sky mobile TV service which was launched in June.

Vodafone Ireland also confirmed it has signed a 3-year agreement with Meteor for the provision of 2G roaming services to Meteor in areas along the western seabord.

Its parent company reported a pre-tax loss of £3.3 billion for the six months, though this included an £8 billion impairment charge linked toa write-down in the value of some assets. Revenue was £15.6 billion, up 7.2%. Core earnings - before interest, tax, depreciation and amortisation - rose to £6.24, ahead of analysts' forecasts.

Vodafone left its revenue growth forecasts for the full year unchanged at 5% to 6.5%. The company will pay a 6.8% higher interim dividend of 2.35p per share.

Vodafone said competition and price cuts imposed by regulators affected its big European markets, with revenue in Germany, Italy and the UK falling. But this was offset by growth in emerging markets and a strong performance from Verizon Wireless in the US.