Mobile phone operator Vodafone has reported a 14.3% increase in revenues for the fourth quarter of 2008, due to the weaker pound making overseas sales more valuable. The company reported revenue of £10.47bn for the last three months of 2008, up 14.3% on the same period last year.
Vodafone recently awarded Carat its £70m media planning and buying business after a final two-way pitched against incumbent OMD and recently dropped its sponsorship of the England and Wales Cricket Board after 12 years.
Vodafone says it is also increasing its revenues forecast for the end of the financial year, as a result of the rise in revenues. It is predicting full-year revenue of £40.6bn-£41.5bn, up from its previous range of £38.8bn-£39.7bn.
The rise in revenues comes three months after Vodafone announced plans to cut costs by £1bn by March 2011.
Vodafone’s saw revenues from UK voice calls fall, while mobile internet services sales increased. The company says it blames a “deteriorating market environment”, leading to “increased involuntary churn”, which means it has had to cut off more customers who had not paid their bills. The company has introduced new tariffs and promotions to help ease this decline.
Vodafone says the market has become increasingly competitive worldwide, but it has “detailed plans” in place to counter the effects.