4
Vodafone Group Plc
Deutsche Numis
Morgan Stanley
New Street Research
Goldman Sachs
BNP Paribas Exane
Bank of America Merrill Lynch
Barclays
JP Morgan
UBS
Berenberg
Citigroup
Mobile, which is in itself a key swing factor, of course, for the results. I would say, so far, no changes. So what we continue to see is just the price moves, which were done roughly a year ago or more that are washing through our base. This aspect around pricing still leave a degree of uncertainty on next year, as you can imagine. But what I can say is that even if nothing changes, you should expect our results to gradually benefit from all the actions you have seen us taking, focused on customer experience, focused on value. So expect continued improvement in this direction from our actions. The market, I think we will tell you more in May. Margherita, maybe I could follow-up on the prior question and just dig a little bit deeper into the German broadband message that you are giving us around value versus volume. I would love to understand a bit better the conviction you have around that journey. I guess, specifically, if you could talk us through the actions you have taken, you have mentioned in your slides another price up in January. Then how we should think about the way that impacts broadband losses going forward? I guess it is hard for us to know are there particular losses this quarter that washed through going forward? Maybe you could give us a bit of a journey from that. I guess within answering it, could you help us understand the extent to which competitors are replicating that directional trend? Any important variables that you might be seeing in the altnet market? Sure. So big picture what is going on in broadband. As you know, the market penetration has plateaued. The only operators that today are seeing any meaningful growth are the altnets in the rural areas. In that context for us, just reiterating what you have heard before, it makes sense to focus on value. Now there is one element of volume, which is very important, which is churn, from our perspective. On churn, I need to say, we are very pleased with our performance. Our fixed broadband churn in Germany, I may have mentioned it before, is now below the majority of all European market. It is below the UK. We keep quarter-after-quarter seeing our net promoter score on our cable network just beating another record. That is moving all in the right direction, and as you know, on the back of the investments we have done in our network and in our processes. What you have seen this quarter is the impact on gross additions from the price moves we have accumulated over now a series of months. Actually, to your question on what is going to happen next, what I can say is that, for Q4, given we have taken another price action just a week ago, you should expect from what we see similar trends on the gross adds side. What have we done on pricing? There is a slide in our presentation that summarise it because it is been really a step-by-step movement, and we may have commented in the past about the beginning of that movement. Since March, we have increased effective pricing on DSL. We have reduced the promo durations across the board. We have taken out starting credits. We have increased equipment cost, all the things you are familiar with. For Q3, this has led to an inflow ARPU level that is the best we have seen in at least three years, and is year-on-year up 21%, which obviously is material. Now I said we have moved again last week, and this is important because last week, we have really done a more-for-more move across our whole cable portfolio in Germany. This was coming with higher speeds, particularly higher uplink speeds nationwide, which have enabled us to do another step on pricing in a more-for-more fashion. Now what we see then is that the value equation is working today. You see it also in our fixed line trends in the P&L. Essentially, the drag on TV is still in there. But as you can see, slightly being now eroded because we have seen fixed broadband in consumer improving and is now stable. Now you asked about what is happening around us? Based on what we see, clearly the market will always be dynamic. But based on what we see today, we see also the market environment improving as we do our actions.
Akhil Dattani JP Morgan
Margherita Della Valle Vodafone
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