Vodafone Reaches 150 Million Customers - Strongest Quarter Since December 2000

Vodafone Reaches 150 Million Customers - Strongest Quarter Since December 2000

LONDON, Jan. 26 /PRNewswire-FirstCall/ -- Vodafone Group Plc ("Vodafone") announces today key performance indicators for the quarter ended 31 December 2004. The main highlights are:

- Strongest quarter of net additions since December 2000 with over
5.4 million organic net additions, bringing the total proportionate
customer base to over 151.8 million

- Highest quarter ever for new Vodafone live! customers of 3.9 million,
bringing global Vodafone live! controlled customer base to 28.3 million,
including 12.9 million in Japan

- ARPU trends continued to develop in line with expectations; non-voice
services increased to 16.7% of controlled service revenue

- Successful launch of Vodafone live! with 3G across 13 markets

- In total, over 400,000 Vodafone Mobile Connect customers, including over
170,000 3G enabled customers

- 2.4 billion shares repurchased in the financial year to date at a cost
of 3.2 billion pounds Sterling

Arun Sarin, Chief Executive of Vodafone, commented:



"I am very pleased to announce another impressive quarter for customer and revenue growth. We have seen consistently strong performances across Europe and in the US, whilst we continue to focus on our turnaround programme in Japan.

In the last quarter we saw record new Vodafone live! customer additions in our controlled base of 3.9 million, which contributed to a total of over 28 million customers across our controlled networks. This highlights our success in attracting and migrating customers to new services. Our customer proposition is enhanced by Vodafone live! with 3G and we have seen positive early indications following our launch in November.

Overall these KPIs are in line with our expectations and we maintain our guidance for the full year to March 2005."

United Kingdom

Vodafone UK added 641,000 net customers in the quarter, taking the total base to 15.2 million customers, an increase of over 9% since last year. Churn has continued its improving trend due to ongoing focus on customer retention and loyalty initiatives. Blended annual ARPU reduced to 314 pounds from 318 pounds for the year to December compared to the year to September 2004, principally due to the impact of the reduction in incoming call termination rates of approximately 30% effective from 1 September 2004.

The growth in average customers more than offset the fall in ARPU and led to a 3% growth in service revenue for the quarter when compared to the same quarter last year. Excluding the effect of the reduction in termination rates, service revenue grew by around 7% in the quarter. Non-voice services as a percentage of service revenue for the year to December 2004 were 17.9%, up from 15.5% for the year to December 2003, with Vodafone live! customers now exceeding 3 million.

Net acquisition and retention costs as a percentage of service revenue in the quarter were stable compared to the same period last year, but higher than the quarter to September 2004 due to seasonal promotional activity.

Germany

Net customer additions of 843,000 demonstrated continued strong growth in Germany and resulted in a closing base of 26.9 million customers, with churn remaining stable compared to the previous quarter.

Blended annual ARPU for the year to December was euro 303 compared to euro 305 for the year to September 2004, reflecting the impact of lower spending new customers. Bundled minute plans continued to be successful and have a positive impact on ARPU.

Strong customer growth was the primary driver behind a 6% increase in service revenue for the quarter compared to the same quarter last year. Non- voice services as a percentage of service revenue for the year to December 2004 were 17.7%, up from 17.2% for the year to December 2003, benefiting from the increase in Vodafone live! customers to 4.3 million.

Net acquisition and retention costs as a percentage of service revenue in the quarter were lower than the same period last year, but higher than the quarter to September 2004 due to seasonal promotional activity.

Italy

Proportionate net customer additions were 359,000 in the quarter, leading to a total proportionate customer base of over 17 million. Blended annual ARPU remained stable at euro 360 for the year to December compared to the year to September 2004. Churn also remained stable quarter on quarter.

Service revenue for the quarter increased 8% compared to the same period last year. Non-voice services as a percentage of service revenue increased to 14.4% for the year to December 2004 from 12.7% for the year to December 2003, benefiting from a series of promotions throughout the year and an increase in total Vodafone live! customers in Italy to 2.3 million.

Net acquisition and retention costs as a percentage of service revenue in the quarter were higher than the same period last year, reflecting the increase in competitive activity in the Italian market. However, these costs remain at very low levels when compared to the rest of the Group.

Japan

The closing proportionate base in Japan was 14.8 million, reflecting net customer additions of 36,000 in the quarter. The Group's effective ownership in Vodafone Japan reduced from 98.2% to 97.7% following the completion of the merger of Vodafone K.K. and Vodafone Holdings K.K. on 1 October 2004. Churn levels remained stable quarter on quarter, benefiting from the continued investment in customer retention activities and the introduction of new handsets.

Blended annual ARPU fell to 75,133 yen for the year to December 2004 from 76,590 yen for the year to September 2004. The fall in ARPU reflects the competitive environment, increasing market penetration and growth in prepaid customers.

Service revenue for the quarter decreased by 4% compared to the same quarter last year, due to the fall in ARPU. Non-voice services as a percentage of service revenue of 21.4% for the year to December 2004 were slightly lower than for the year to December 2003 due to the impact of competition.

Net acquisition and retention costs as a percentage of service revenue in the period were stable compared to the same quarter last year.

The Group will continue to focus on executing a successful turnaround programme in Japan throughout 2005 and into 2006.

Spain

Vodafone Spain added 457,000 net customers in the quarter, bringing the total customer base to 10.9 million customers, an increase of over 12% on last year. Churn has improved both quarter on quarter and year on year.

Blended annual ARPU continued to grow strongly, increasing to euro 408 from euro 400 for the year to December compared to the year to September 2004, benefiting from the focus on high value customers.

The strong growth in ARPU and customers generated service revenue growth of over 20% year on year for the fourth successive quarter. Non-voice services as a percentage of service revenue increased to 13.1% for the year to December 2004 from 11.0% for the year to December 2003, with Vodafone live! customers increasing by over 700,000 in the quarter to reach a total of 2.2 million.

Net acquisition and retention costs as a percentage of service revenue in the period were higher than the same quarter last year, reflecting the increased investment in acquiring and retaining higher value customers during the current financial year.

Notes to editors
(1) The guidance for the year to March 2005 is contained in
Vodafone's Interim Results Announcement for the six months ended
30 September 2004 in which there is a discussion of forward-looking
statements and the risks associated with them.
(2) Service revenue growth is calculated in local currency and before the
elimination of intercompany revenue.
(3) Vodafone, Vodafone live! and Vodafone Mobile Connect are trademarks of
the Vodafone Group.


VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
PROPORTIONATE CUSTOMERS - 1 OCTOBER 2004 TO 31 DECEMBER 2004

AT AT
PERCENTAGE 30 NET OTHER 31
OWNERSHIP SEPTEMBER ADDITIONS MOVEMENTS DECEMBER PREPAID
(1) 2004 (2) 2004 (3)
COUNTRY
(%) (000s) (000s) (000s) (000s) (%)
UK & IRELAND
UK 100.0 14,600 641 - 15,241 61%
Ireland 100.0 1,890 39 - 1,929 72%
TOTAL 16,490 680 - 17,170 62%

NORTHERN EUROPE
Germany 100.0 26,092 843 - 26,935 52%
Hungary(5) 92.8 1,498 112 - 1,610 78%
Netherlands 99.9 3,537 130 - 3,667 56%
Sweden 100.0 1,530 44 - 1,574 39%
Others 9,993 388 - 10,381 48%
TOTAL 42,650 1,517 - 44,167 51%

SOUTHERN EUROPE
Italy 76.8 16,654 359 - 17,013 92%
Albania 99.7 587 32 - 619 97%
Greece 99.4 3,704 118 - 3,822 66%
Malta 100.0 165 - - 165 90%
Portugal 100.0 3,488 149 - 3,637 74%
Spain 100.0 10,452 457 - 10,909 54%
Others 878 109 - 987 66%
TOTAL 35,928 1,224 - 37,152 77%

AMERICAS
United States
(2) & (4) 44.4 18,686 753 2 19,441 6%
TOTAL 18,686 753 2 19,441 6%

ASIA PACIFIC
Japan(2) 97.7 14,851 36 (78) 14,809 11%
Australia(2) 100.0 2,649 156 (228) 2,577 64%
New Zealand 100.0 1,757 74 - 1,831 79%
Others 6,421 330 - 6,751 71%
TOTAL 25,678 596 (306) 25,968 67%

MIDDLE EAST AND AFRICA
Egypt(5) 67.0 2,142 249 - 2,391 83%
Others 5,119 400 - 5,519 89%
TOTAL 7,261 649 - 7,910 88%

GROUP TOTAL 146,693 5,419 (304) 151,808 60%

(1) All ownership percentages are stated as at 31 December 2004 and
exclude options, warrants or other rights or obligations of the Group
to increase or decrease ownership in any venture. Ownership interests
have been rounded to the nearest tenth of one percent.
(2) Other movements for the quarter to 31 December 2004 includes
228,000 MVNO customers in Vodafone Australia which had previously been
included in the Group's proportionate customer base but have been
excluded in the quarter to 31 December 2004 in accordance with Group
policy, a stake decrease of 0.5% in Vodafone Japan from 98.2% to 97.7%
following the merger of Vodafone K.K. and Vodafone Holdings K.K. on 1
October 2004 and the acquisition of a local network operator by
Verizon Wireless.
(3) Prepaid customer percentages are calculated on a venture basis. At
31 December 2004, there were 416.4 million total venture customers.
(4) The Group's proportionate customer base has been adjusted for Verizon
Wireless's proportionate ownership of its customer base across all its
network interests of approximately 98.6% at 31 December 2004. In the
absence of acquired interests, this proportionate ownership will vary
slightly from quarter to quarter depending on the underlying mix of
net additions across each of these networks.
(5) Subsequent to 31 December 2004, the Group increased its stake in
Vodafone Hungary to 100.0% and committed to reduce its stake in
Vodafone Egypt to 50.1%.


VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
VENTURE VODAFONE LIVE! CUSTOMERS

COUNTRY AT AT
30 SEPTEMBER 2004 NEW CUSTOMERS 31 DECEMBER 2004
(000s) (000s) (000s)

Germany 3,570 777 4,347
Italy 1,643 659 2,302
Japan* N/A N/A 12,937
Spain 1,496 704 2,200
UK 2,403 710 3,113
Other 2,369 1,023 3,392
Controlled Total 11,481 3,873 28,291

* With effect from 31 December 2004, Vodafone live! venture customers in
Japan have been included in the above table as the service in Japan has
become aligned with the Vodafone live! experience in other countries.
Prior to this date, registered Vodafone live! venture customers in
Japan, of which there were 13.0 million at 30 September 2004, were
excluded from the table and disclosed separately.



The table above only includes Vodafone live! venture customers in our controlled operations. There were an additional 2.8 million registered Vodafone live! venture customers in our non-controlled associated undertakings at 31 December 2004 (September 2004: 1.8 million).

VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
CONTROLLED ACTIVE CUSTOMER INFORMATION AS AT 31 DECEMBER 2004

CONTROLLED ACTIVE CUSTOMERS AS AT
COUNTRY DECEMBER MARCH JUNE SEPTEMBER DECEMBER
2003 2004 2004 2004 2004

Germany 92 % 93 % 93 % 92 % 92 %
Italy 93 % 93 % 92 % 92 % 92 %
Japan 98 % 97 % 97 % 97 % 97 %
Spain 95 % 96 % 97 % 92 % 92 %
UK 91 % 91 % 91 % 91 % 90 %
Controlled Total 93 % 94 % 93 % 93 % 92 %


VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
MONTHLY REGISTERED TOTAL ARPU FOR THE 15 MONTHS TO 31 DECEMBER 2004

Country
Oct Nov Dec Jan Feb Mar Apr
Germany EUR 27.0 24.9 25.4 24.5 23.2 26.2 25.0
Italy EUR 31.1 29.0 30.4 29.6 27.8 30.6 29.9
Japan JPY 6,760 6,460 6,690 6,360 6,100 6,560 6,300
Spain EUR 32.6 29.5 31.8 30.6 29.3 33.0 32.9
UK(1) GBP 26.8 26.0 26.2 27.0 24.1 28.3 25.3

Country
May Jun Jul Aug Sep Oct Nov Dec
Germany EUR 25.5 25.8 26.4 25.9 25.7 25.5 24.6 24.5
Italy EUR 30.1 30.8 31.0 29.6 30.2 30.3 28.9 31.2
Japan JPY 6,150 6,150 6,470 6,380 6,210 6,280 5,970 6,200
Spain EUR 33.9 35.4 38.5 36.4 35.2 34.8 32.6 35.1
UK(1) GBP 27.8 26.8 27.3 26.8 25.8 25.6 24.6 24.4


ARPU INFORMATION FOR THE 12 MONTH PERIOD TO 31 DECEMBER 2004

ARPU
COUNTRY REGISTERED REGISTERED REGISTERED
CURRENCY PREPAID CONTRACT TOTAL
UK & IRELAND
UK(1) GBP 127 574 314
Ireland EUR 370 1,186 602

NORTHERN EUROPE
Germany EUR 121 482 303
Hungary HUF 40,588 150,671 62,540
Netherlands EUR 152 860 459
Sweden SEK 799 5,625 3,938

SOUTHERN EUROPE
Italy EUR 306 927 360
Albania ABL 20,507 294,980 28,967
Greece EUR 211 781 398
Malta MTL 94 908 168
Portugal EUR 192 687 336
Spain EUR 179 687 408

ASIA PACIFIC
Japan JPY 30,734 79,506 75,133
Australia AUD 334 949 607
New Zealand NZD 343 1,800 651

MIDDLE EAST AND AFRICA
Egypt EGP 806 3,078 1,237


ARPU - HISTORY

REGISTERED TOTAL ARPU FOR THE TWELVE MONTH PERIOD TO
COUNTRY DECEMBER MARCH JUNE SEPTEMBER DECEMBER
CURRENCY 2003 2004 2004 2004 2004

Germany EUR 311 310 309 305 303
Italy EUR 359 361 362 360 360
Japan JPY 82,917 80,695 78,365 76,590 75,133
Spain EUR 369 377 389 400 408
UK(1) GBP 303 309 314 318 314

(1) During the period from 1 October 2002 to 31 March 2003, Vodafone UK
operated under interim commercial terms with one of its service
providers. Final terms were agreed in April 2003. Recognising revenues
on a consistent basis during the interim period to the bases before
and after this period would result in additional service revenues of
74 million pounds. For consistency and comparability purposes, this
revenue has been included in the calculation of UK ARPU but has been
excluded from Group turnover in accordance with UK GAAP. The impact of
the inclusion of these amounts has been to increase ARPU for the
12 months to December 2003 from 300 pounds to 303 pounds.


VODAFONE GROUP PLC - MOBILE TELECOMMUNICATIONS BUSINESSES
NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES

12 MONTHS TO 31 DECEMBER 2004
COUNTRY MESSAGING DATA TOTAL

Germany 15.1 % 2.6 % 17.7 %
Italy 12.9 % 1.5 % 14.4 %
Japan 7.2 % 14.2 % 21.4 %
Spain 11.3 % 1.8 % 13.1 %
UK 15.0 % 2.9 % 17.9 %
Statutory Total 12.2 % 4.5 % 16.7 %
Proportionate Total 10.3 % 3.7 % 14.0 %


NON-VOICE SERVICES AS A PERCENTAGE OF SERVICE REVENUES - HISTORY

12 MONTHS TO
COUNTRY DECEMBER MARCH JUNE SEPTEMBER DECEMBER
2003 2004 2004 2004 2004

Germany 17.2 % 17.4 % 17.4 % 17.6 % 17.7 %
Italy 12.7 % 13.3 % 13.5 % 14.1 % 14.4 %
Japan 21.8 % 21.9 % 21.9 % 21.8 % 21.4 %
Spain 11.0 % 11.4 % 11.8 % 12.4 % 13.1 %
UK 15.5 % 16.1 % 16.6 % 17.3 % 17.9 %
Statutory Total 15.9 % 16.1 % 16.3 % 16.5 % 16.7 %
Proportionate Total 12.5 % 13.0 % 13.3 % 13.6 % 14.0 %



Source: Vodafone Group Plc

CONTACT: Simon Lewis, Group Corporate Affairs Director, +44-1635-673310;
or Investor Relations - Charles Butterworth, Darren Jones or Sarah Moriarty,
+44-1635-673310, or Media Relations - Bobby Leach or Ben Padovan,
+44-1635-673310, all of Vodafone Group; or Lulu Bridges or John West, both of
Tavistock Communications, +44-20-7920-3150, for Vodafone Group

Web site: http://www.vodafone.com/


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