Earnings release for the third quarter of FY2003, ended December 31, 2003 - 128 January 2004
VODAFONE HOLDINGS ANNOUNCES FISCAL 2003 THIRD QUARTER RESULTS
TOKYO: VODAFONE HOLDINGS K.K. (" Vodafone Holdings") (TSE: 9434) today announces its results for the first nine months of fiscal 2003 together with a downward revision of its forecasts for the fiscal year ended 31 March 2004. Consolidated operating revenues increased 385.8 billion yen from 30 September to 1,288.7 billion yen at the end of December, due primarily to increased revenues at Vodafone K.K. The company downwardly revised revenue, ordinary and net income forecasts due to an intensifying competitive environment and Vodafone K.K.'s investment in rolling out new services and initiatives to enhance the attractiveness of its offerings.
Operating highlights Vodafone K.K.'s operating highlights for the three-month period ended 31 December 2003 are as follows:
Net customer additions totaled 182,900, representing a 15.3% share of market net additions for the three-month period. Total customers at the end of the period amounted to 14,774,000. On a per month basis the additions marked an improvement over the period:
|Net additions||Monthly share (%)||Cumulative share (%)|
In order to improve its competitiveness, Vodafone K.K. launched major retention initiatives in October. The company has already observed a positive impact on churn as a result of n ewly introduced plans such as Vodafone Happy Time, Vodafone Happy Bonus, Vodafone Happy Packet (since December), increased retention payments, and attractive handset offerings including 3G.
In December 2003, Vodafone K.K. launched Japan's first handset with a built-in TV tuner, the V601N. In the same month, the Company also released the V601SH, a handset with a 2-megapixel autofocus CCD mobile camera, and the V801SA, the first Vodafone live! handset powered by 3G.
For its Vodafone Global Standard 3G service, by the end of December 2003 Vodafone K.K. achieved network population coverage of 99.5% in Japan and Vodafone Global Standard customers totaled 111,700. The company had a total of 118 roaming agreements in 81 countries for roaming abroad on GSM networks as of 31 December 2003 . Moreover, since Vodafone K.K.' 3G network is compatible with global standards, the Company has been able to offer in-roaming services to customers of its international roaming partner networks. In December Vodafone K.K. also launched its 3G version of Vodafone live! so that customers can enjoy Sha-mail, Movie Sha-mail and web browsing services abroad, as well as send and receive e-mail attachments of up to 200KB. The V801SA, the first handset compatible with this service, was made available in December 2003.
Movie Sha-mail handsets, which also have Sha-mail capability, numbered 2,696,400 by the end of December, which represented approximately 18.3% of Vodafone K.K.'s customers.
The percentage of prepaid customers at the end of December was stable at 8%.
Data and content revenues accounted for 22.4% of total service revenues in December and 21.8% over the past 12 months. In addition to the continued success of the Vodafone live! mobile internet, Sha-mail, and Movie Sha-mail products, the 3G version now provides customers with faster speeds and richer content offerings such as Chaku-uta™(CD-quality ring songs). At the end of December 2003, Vodafone live! subscribers accounted for 86.4% of Vodafone K.K.'s customer base.