Price wars in Europe hit Vodafone revenues

 
Suzie Neuwirth

VODAFONE today unveiled a 3.5 per cent drop in its organic service revenue for the first quarter, hit by increasing competition in the UK, Germany and Italy.

The British telecoms company said that service revenue in Germany fell by 5.1 per cent over the period and by 4.5 per cent in the UK due to price pressure.

Italian service revenue plunged 17.6 per cent in the first quarter due to substantial price reductions and a deteriorating economic environment, the telco said.

“Although regulation, competitive pressures and weak economies, particularly in Southern Europe, continue to restrict revenue growth, we continue to lay strong foundations for the longer term,” said chief executive Vittorio Colao.