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Vodafone loses 500,000 customers in six months

David Ramli (via AFR) | July 19, 2013
Vodafone Hutchison Australia has lost more than half a million customers and $218 million in the past six months alone, according to its half-year results ending June 30.

Vodafone loses 500,000 customers in six months
Vodafone's Australian chief Bill Morrow said customer loss numbers were expected in its turnaround planning Photo: Jim Rice

Vodafone Hutchison Australia has lost more than half a million customers and $218 million in the past six months alone, according to its half-year results ending June 30.

"VHA's total customer base declined 551,000 to 6 million over the first six months to June," Vodafone said in a statement. "[This was] due to customers coming off contract from 2011 and the removal of inactive SIMs from its customer base."

The latest figures mean Vodafone has lost more than 1.5 million customers since 2011.

According to the financial results, Vodafone Hutchison Australia incurred losses of $218.2 million in the six months ending June 30, 2013. But this was an improvement on the $276 million the company lost during the same period in 2012.

VHA has lost 11.9 per cent of its mobile customer base in the past year with users leaving the network at an increasing rate. Where it lost 178,000 customers in the first six months of 2012, this increased to 551,000 in the first six months of 2013.

But a Vodafone Hutchison Australia spokeswoman said more than 100,000 of the losses in the past six months were inactive SIM cards culled by the company.

VHA's total revenues fell by 15.9 per cent from $2.07 billion in the first six months of 2012 to $1.74 billion in the same period of 2013.

"The turnaround strategy anticipates customer losses to continue for the remainder of 2013 but our underlying churn rate is well within target and our overall average revenue per user (ARPU) is on track," VHA chief executive Bill Morrow said.

"While there are continued challenges ahead and plenty of work still to do, I'm very confident about the future of VHA and extremely pleased with the progress made."

More to come

 

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