Vodafone Group Plc Q1FY26 Q&A Transcript
Deutsche Numis
Goldman Sachs
New Street Research
Bank of America Merrill Lynch
Bernstein Societe Generale
Kepler Cheuvreux
1
Barclays
Citigroup
Berenberg
JP Morgan
BNPP Exane
Luka Mucic
I just upgraded 1 Gbps. So, at least one additional customer on gigabit speed now.
Vodafone Group
James Ratzer
Got it. Thank you.
New Street Research
Paul Sidney
Yes, thank you very much for the question. I really appreciate it. I just had one question on Germany, but perhaps a little bit of potential read across for the UK.
Berenberg
However, my question is, we have heard many times from the Vodafone team over the course of the morning the phrase ‘ value over volume ’ , particularly when talking about the German market. It is a narrative we have heard from Deutsche Telekom pretty consistently over the past six months. So, I am sure it has not a coincidence that you are focusing on that ‘ value over volume ’ strategy. So, just wondering if that is really intentional and is it meant to send a message to the other German operators that there is an opportunity to extract more value from the German market? And is this a strategy that you will be following in the UK, following the completion of the Three UK merger? Thank you. Thank you, Paul. I would say from my perspective, it is a very much needed sentence when we talk about particularly mobile net adds, because as you know very well, whilst in broadband acquisitions come with ARPU. And therefore, I think it is logical that in the roundings, you look at this as a leading indicator of future revenue. This is absolutely not the case in mobile. And it has not been the case for many, many years, because in the context of the SIM count in mobile, there is a wide range of different values. We have even had markets historically where at some point people were distributing free SIMs. I do not think the SIM count is for the industry a good KPI, a good leading indicator of revenue. And I think it can end up being also, to the extreme, a very confusing red herring, because it drives people towards the wrong behaviours. Sorry, I went a bit long, but I am really passionate about this point, because a lot is made out of that, whilst ultimately, what we care about is obviously revenue, which is why in the specific of Germany, now you were asking about Germany, our focus has to be not number of SIMs, but has to be we have a valuable base. For us, we use this word branded base, as opposed to reseller base, because this is where effectively the value is entirely. And that is what we are targeting. And sorry, just the second part of the question in terms of is that a strategy you would be looking to follow in the UK and try and again get the whole market to focus on value rather than these quarterly KPI numbers?
Margherita Della Valle
Vodafone Group
Paul Sidney
Berenberg
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