9 Nov 2011

Vodafone sheds customers, revenue drops

1:06 pm on 9 November 2011

Mobile phone giant Vodafone has re-iterated that revenue growth has been affected by cuts in mobile termination rates, while it also shed customers.

In May, Vodafone said slashing the cost of switching phone calls and text messages between networks to 7.5 cents a minute would cost it about $70 million in annual profit this year.

The British-based company did not say by how much revenue had been affected but did say that growth had been heavily affected.

Vodafone shed 24,000 users in the three months to the end of September, giving it a total customer base of 2.43 million people.

Two thirds of them are prepaid customers.

Overall, Vodafone made a pre-tax profit of £8 billion in the six months to September, a decrease of 2.5% compared with the same period a year earlier.