03 August 2016
Half-yearly results unveiled last week showed Vodafone lost $163.9 million in the six month period to June 2016, however the loss is 37% less than the loss in the same period last year.
According to Vodafone the losses mainly stem from network remediation costs and the decision of the ACCC to cut mobile termination rates.
Vodafone CFO James Marsh said the half-year results point to a "solid performance" that "indicates we are on the right track".
He said capital spend as a percentage of turnover remained in the "high teens", largely driven by its network remediation and the build of more than 100 new mobile base stations throughout regional Australia.
Vodafone did, however, take a revenue hit from the ACCC's cuts to mobile termination rates - the fees telcos charge each other to receive calls and SMS.
Marsh said the cuts took about $230 million out of Vodafone's mobile termination revenue for the period, and helped push its revenue down 9.7 percent.
Without the MTR reduction, he said its revenue would have increased by 4.5 percent.
However, its other vital stats will keep the company optimistic about Vodafone's future prospects in the Australian telco market.
It added 239,000 new customers to its books over the six months, bringing it to a total of 5.5 million users.
While customer numbers grew, Vodafone's overall average revenue per use (ARPU) fell from $51.32 per month to $49.11.
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