Vodafone Germany increased its operating profit in the first half of the financial year 2021/22 with stable sales by almost 8 percent. In the six months from April to September, service sales grew slightly by 1.2 percent to 5.78 billion euros compared to the same period in the previous year, the company announced on Tuesday in Düsseldorf. At the same time, adjusted operating profit before interest, taxes, depreciation and amortization after leasing (Ebitda aL) grew by almost 8 percent to 2.89 billion euros.
The company records revenue from customer contracts for fixed line or mobile communications services as service revenue. The reported turnover comprises 2.54 billion euros from mobile customers and 3.24 billion euros from fixed network contracts. Including further income, Vodafone earned 6.45 billion euros in the first half of the year, which corresponds to a growth of 1.2 percent compared to the previous year.
31 million mobile customers
At the end of the second quarter, Vodafone had 31.2 million mobile communications customers, 61 percent of them with term contracts. In the first half of the year, the provider was able to gain 54,000 new contract customers and 143,000 new prepaid customers. Also driven by the IoT offer, the number of SIM cards in the Vodafone network is growing by 3.5 million to 61.9 million.
In the fixed network, Vodafone was able to acquire a total of 39,000 new customers in the first half of the year, making a total of 10.97 million fixed network customers. Vodafone has 86,000 new customers for cable connections, some of which come from old DSL contracts. There was an overall decline in DSL customers. Almost 40 percent of new cable customers now opt for a tariff with gigabit bandwidth from Vodafone. 13.38 million customers purchase cable television from Vodafone, around 100,000 fewer than six months ago.
Vodafone Germany has around 16,000 employees, 5000 of whom work at the company headquarters in Düsseldorf. “Our technicians have expanded Germany’s largest gigabit network for currently over 23 million households,” said Germany boss Hannes Ametsreiter. The 5G network is now also available to 35 million people. “We have thus exceeded our expansion ambitions.”
Germany’s most important market
The group was able to increase its total sales in the first half of the year by 5 percent to 22.49 billion euros, as Vodafone announced on Tuesday in London. With operating earnings before interest, taxes, depreciation and amortization after leasing (Ebitda aL) of 7.56 billion euros (+8 percent), the company recorded a profit of 1.28 billion euros. Vodafone Germany does not provide any information on net profit.
The German subsidiary now contributes almost a third of the service turnover and 38 percent of the adjusted operating result of the British parent company. Vodafone still sees growth opportunities in Germany in the case of integrated product offerings with mobile and landline networks as a package.