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28 Vodafone Group Plc Annual Report 2011
Key market review
Revenue trends continue to improve
■ Group organic service revenue growth improved
during the year, with a strong result from emerging
markets and encouraging signs of renewed growth
in some parts of Europe.
■ In Europe service revenue was down 0.4% (*) during
the year; however, this was significantly better than
last year’s decline of 3.8% (*) . We are seeing positive
revenue trends in the more stable economies of
northern Europe such as Germany, the UK and the
Netherlands, while our remaining mature markets in
Europe, particularly those impacted by government
austerity measures, have seen declining revenue
growth. Turkey has seen significant revenue growth
this year, driven by improvements both in voice and
data revenue.
■ Service revenue growth in our Africa, Middle East
and Asia Pacific region was 9.5 (*) . Our two major
businesses within this region, India and Vodacom,
reported continued strong growth reflecting the
benefits of rising mobile penetration in India and a
more stable pricing environment; and strong take-up
of data services in South Africa.
■ See operating results on pages 34 to 38 for further
details of performance within each of our markets
during the year.
We have gained or held market share
in most of our key markets
Key market performance at a glance
Country Key achievements
Organic service revenue growth
Germany
■ Excluding the impact of regulated
termination rate cuts, service revenue
growth was 2.1% (*) .
■ Strong growth in enterprise segment
Service revenue growth (%)
due to significant customer wins.
■ Our first market to launch 4G/LTE.
(*) 0.8
EBITDA margin (%)
Operating free cash flow (£m)
37.4
2,297
(2.5)
2009
(3.5)
2010 2011
Italy
Service revenue growth (%) (*) (2.1)
EBITDA margin (%) 46.2
Operating free cash flow (£m) 2,067
Spain
Service revenue growth (%) (*) (6.9)
EBITDA margin (%) 30.4
Operating free cash flow (£m) 885
■ Increased market share in a challenging
economic and competitive environment.
■ A 21.5 % (*) increase in data revenue due
to increased smartphone penetration.
■ Now with 1.7 million fixed broadband
customers (on a 100% basis), up 29%.
■ Extremely challenging economic
environment and increasing
competitive pressure.
■ New integrated voice and data plans
to support smartphone adoption.
■ New management in place
since April 2011.
1.2
1.9
0.8
2009 2010
(2.1)
2011
(4.9)
(7.0)
(6.9)
2009 2010 2011