View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
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.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

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.”

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.