Opposite results for Iliad and Vodafone. If the French telecommunications group Iliad continues to achieve excellent results, highlighting revenue growth of +10,1% in the first nine months of 2023, Vodafone Group is going through a period of ups and downs with a revenue contraction of 4,3%, attributable to unfavorable exchange rate movements and the divestment of Vantage Towers, Vodafone Hungary and Vodafone Ghana in the previous financial year.
Financial results that highlight the current difference between the two companies, with Vodafone suffering from the well-known difficulties affecting the TLC sector and Iliad instead ready to expand thanks to its low cost model. Vodafone has already started a reorganization also focused on the activities in Italy, identifying some of them as problematic or no longer profitable, squeezed between the enormous investments in the networks and prices increasingly under pressure. Iliad, however, in a process of growth and consolidation in the telecommunications sector in Italy, remains always interested in a possible acquisition of the Group's activities in the country, Swisscom permitting.
Iliad: revenues grow, +10,1%
Iliad recorded a increase in the number of users to 47,8 million in the first nine months of 2023, with an increase of 845 thousand compared to June 2023.
Il turnover rose to 6,797 billion euros, showing an increase of 10,1% compared to the same period in 2022. TheEBITDAaL reached 2,545 billion euros, recording an increase of 5,1% compared to 30 September 2022.
In Italy, the French Group reached 10,475 million active mobile users, with a net increase of 359 thousand users compared to June 2023. In the segment fiber-to-the-home (FTTH) of the fiber market, recorded a positive performance, with 172 thousand users and a net increase of 23 thousand new users compared to the first half of the year.
Iliad Italia: 764 million euro turnover, +12,5%
I main indicators Iliad's financial statements in Italy show a positive trend. The turnover of the first nine months has reached 764 million of euros, with a del% increase 12,5 compared to the same period of the previous year. EBITDAaL, with a positive performance, rose to 189 million euros recorded as of 30 September 2023, representing an increase of 28,7% compared to 2022.
“Quarter after quarter we have achieved increasingly positive performances, both in the mobile and fiber segments, and last but not least also in the business segment – he commented Benedict Levi, CEO of Iliad Italy – Since our arrival, we have built our offer starting from the values of trust and transparency, principles that have become a guarantee for all users who decide to choose us every day".
Vodafone: half-year in the red, 4,3% drop in total revenues
Vodafone Group, on the other hand, has recorded a decline of 4,3% in total revenues, which stood at 21,9 billion euros in the first half of fiscal 2024. This contraction is attributed to adverse exchange rate movements and the divestment of Vantage Towers, Vodafone Hungary and Vodafone Ghana in the previous financial year. The gross operating margin fell to 6,4 billion, operating profit down 44,2% to 1,7 billion and a loss of 0,2 billion euros.
La perdita amounts to £155 million, compared to a profit of £1.202 million in the same period the previous year. Basic loss per share was 1,28 euro cents, compared to basic earnings per share of 3,37 euro cents in the same period a year earlier.
However, they grow service revenues of the Group are grown by 4,2% (or 2,3% excluding Turkey), with improvements in both Europe and Africa. The situation in Germany is also improving while Vodafone Business accelerates, growing by 4,4% in the first half of the year. “During the first half of the year, we achieved improved revenue growth in almost all of our markets and returned to growth in Germany in the second quarter,” commented the CEO Margaret of the Valley.
" Vodafone's transformation is progressing – he added – Our focus on customers and the simplification of our business are starting to bear fruit, although there is still much to do. We also announced transactions for strengthen our location in the UK e exit the difficult Spanish market in order to appropriately size our portfolio for growth.”
The group has confirmed the guidance for fiscal 2024. Adjusted EBITDAaL is expected to remain essentially unchanged at around €13,3 billion, while adjusted free cash flow is estimated at approximately €3,3 billion.
Vodafone Italia: Vodafone Business is doing well, mobile is doing badly
Vodafone Italy continues to show improvement, with revenues from services amounting to 2,098 billion euros in the first half of the year (-1,3%). The second quarter recorded a decline of 1%, lower than the first quarter (-1,6%). Adjusted EBITDAaL stood at 645 million, with a decrease of 15%, influenced by the 10,1% increase in energy prices. Excluding the energy impact, Adjusted EBITDAaL would record a decrease of 4,9%.
I landline revenues of Vodafone Italia continue to grow solidly, recording an increase of 8%. The increase is driven by robust expansion in fixed business connectivity and digital services for businesses. On the contrary, i mobile revenue contracted by 5,1%, reflecting ongoing price pressures in a traditionally competitive market.
Vodafone Business continues to show solidity, highlighting a growth of 8,4% driven by fixed business and positive demand for connectivity and digital services.
Broadband services now cover 23,6 million households, with an additional 3,9 million households and businesses served via 5G FWA and 1,5 million via 4G FWA. The second brand, I have. Mobile, continued to grow, adding 117 thousand new customers and reaching a total of 3,1 million customers. In October 2023 theagreement in the wholesale market with Poste until 2028.
