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July 22, 2016

Vodafone UK sales hammered by IT failure as mobile services boom elsewhere

News: Vodafone refocuses on UK growth as CEO rules out moving headquarters.

By Alexander Sword

Vodafone saw sales in the UK fall in the quarter to June 2016 as revenue from its mobile services elsewhere grew.

Overall group service revenues in the three months to the end of June grew 2.2 percent year-on-year. Service revenue was €12.3 billion for the quarter.

Total revenue was €13.4 billion and declined 4.5 percent.

Vodafone saw 348,000 broadband net adds, up 32 percent.

In its home market of the UK, Vodafone saw a 3.2 percent decline, which it blamed on operational challenges.

CEO Vittorio Colao said that the company was focused on improving its performance in the UK.

Vodafone also saw high churn in its last results in the UK, which it blamed on a troubled IT migration project. Mobile service revenue declined 0.7 percent in the UK and contract customer growth slowed in the quarter which Vodafone said was impacted by higher churn rates.

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The migration of its billing system which was intended to simplify the operation of customer accounts and open up services such as 'click and collect', but ended up sending customers the wrong bills and information.

Ofcom revealed in its quarterly telco complaints report that complaints about Vodafone's mobile services veered sharply away from its competitors.

They rose from 15 per 100,000 in Q4 2014, to 32 per 100,000 by the same time the following year. The more than doubling took place between Q2, where the figure was 14 per 100,000, and Q4 2015.

According to the Telegraph, Colao said that the company had no plans to leave the UK following the vote to leave the European Union. He said that the UK was an “attractive place to be.”

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