Connect with us

Cars

Vodafone Australia EBITDA tops AU$1b but continues to post net loss

Published

on

The Vodafone TV


(Image: Vodafone)

Revenue is up, earnings are up, and net profit is a third better than last time, but the tale of the tape for Vodafone Australia is that it is still left with a net loss at the bottom of its financial reports.

In what CEO Iñaki Berroeta labelled as a good year for the company, Vodafone Australia saw its revenue increase 5.5 percent year-on-year to AU$3.65 billion for the year to December 31, and its earnings before interest, tax, depreciation, and amortisation (EBITDA) jump by 13.4 percent to AU$1.1 billion.

For its bottom line, net loss was reduced by 30 percent to AU$124.4 million compared to last year’s AU$177 million.

Across the year, Vodafone saw its total customer base surpass six million thanks to the addition of 211,000 customers. Broken down, the telco increased its postpaid customers by 2 percent to record 3.45 million, prepaid customers grew six percent to 2.2 million, and the customers on Kogan Mobile and Lebara resellers jumped 5.3 percent to 356,000.

During the year, the company launched its entry into fixed-line broadband that would see Vodafone release retail NBN plans. On Wednesday, Berroeta said the company was adding around 6,000 customers each month, as the company reported having 33,000 NBN customers.

Monthly average revenue per user (ARPU) was down 2 percent to AU$37.45 for customers restricted to Vodafone’s own offerings, while adding in customers on Kogan and Lebara saw ARPU fall by 4.4 percent to AU$35.52.

Commenting on the results, Berroeta pointed to mobile market competition and increasing data inclusions across the industry.

“The price of data per GB has been on a steep decline for several years, decreasing around 85 percent over the past two and a half years,” he said.

“For example, the price per GB on a competitive [mobile network operator] AU$40/AU$45 SIM Only plan was just under AU$7 in 2016, today it’s around AU$1.”

Berroeta also added the company had spent AU$1.3 billion during the year to handle the increases in data being used, and to get its network ready for 5G. The spend included constructing 180 new mobile sites and upgrading 850 existing sites.

“This included the construction of 22 new sites as part of the Australian government’s mobile blackspots program,” Vodafone half-owner Hutchison Telecoms said in its results.

“[Vodafone Australia’s] significant network investment in metropolitan and regional areas helped support growing customer data usage, which increased 45 percent from 2017 to more than 360 million gigabytes in 2018. ”

Following the decision by the Australian government to lock Huawei and ZTE out of any 5G network build in the country, Vodafone will need to find a replacement for the Huawei kit it uses.

“We are currently evaluating the different options around the 5G roadmap,” Berroeta said. “It is not a secret that we were basically an Ericsson core with a Huawei radio access network.”

“It is still a long time to be using 4G, but eventually, every … service that we provide on 5G will be on different equipment than Huawei.”

The first casualty of the Huawei ban has been TPG, who disclosed earlier this week that it would abandon its mobile network build in Australia, incurring an accounting hit of almost AU$230 million.

However, should the proposed merger between TPG and Vodafone go ahead, the new and bigger TPG would have Vodafone’s current network coupled with TPG’s existing spectrum holdings, and the AU$263 million of 5G spectrum purchased in December.

Berroeta said the merger now makes more sense than before, and the combined assets would make a very strong third player in the market.

“With the next generation of mobile network just around the corner, there’s never been a more important time to ensure Australia has effective 5G mobile competition,” he said.

Related Coverage

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Cars

BMW iX5 Hydrogen Production Starts, But Don’t Expect To See This Fuel-Cell SUV In Dealerships

Published

on

The reality, though, is that even with a small number of BMW iX5 Hydrogen SUVs being produced — using individual fuel-cells supplied by Toyota, but assembled into a stack by BMW using the automaker’s own processes and technologies — the expectation is that hydrogen as a fuel will be predominantly of interest to non-passenger vehicles. Instead, it arguably makes the most sense, BMW suggests, for larger vehicles like medium- to heavy-duty trucks, along with the marine and aviation sectors. We’ve already seen Toyota reveal its plans for such an FCEV truck.

Despite that, and an acknowledgment that battery-electric vehicles will undoubtedly lead in the mainstream, BMW still believes there’s a place for FCEVs. After all, the automaker argues, if the infrastructure is being built to cater for trucks, there’s no reason not to also use it for passenger vehicles like the iX5 Hydrogen.

The results of the small-series production beginning today will be used as technology demonstrators across select regions from spring 2023, BMW says. It’s unclear at this point how many will be built. Depending on the reception and the strengths of the technology, series production of a first model could follow mid-decade, ahead of a potential full portfolio of BMW FCEVs from the 2030s onwards.

Continue Reading

Cars

Tesla Set To Deliver The First Semi To Pepsi

Published

on

In October, Tesla’s CEO revealed that the production of the Tesla Semi had begun, and it was bound to be delivered today. Tesla has already started the countdown, and we expect the unveiling event to go down at the Nevada factory. The electric truck will be dispatched to Pepsi, which had ordered 100 units. Investor reports that Tesla’s stock price increased by 7.7% on Wednesday, probably in anticipation of Tesla’s Semi first delivery.

Musk tweeted on Saturday that the “Tesla team just completed a 500-mile drive with a Tesla Semi weighing in at 81,000 lbs!” However, considering that Musk said that the company is dealing with supply chain issues and market inflation, it’s unclear if Tesla will stick to the original $180,000 price it intended to sell at when it was announced in 2017. Then again, Tesla offers a cheaper Semi that will be available for about $150,000 — but it can only achieve up to 300 miles at full load capacity. For now, we can only wait until it’s on the road to confirm if the specs match up to what was promised five years ago.  

Continue Reading

Cars

Coinbase Joins Elon Musk In Slamming The Apple App Store Tax

Published

on

Coinbase complained that Apple’s insistence on its cut unreasonably interfered with its business.

Coinbase’s argument was largely the same as Elon Musk’s, and the basis of Epic Games’ aforementioned lawsuit. According to all of the above, Apple was half of a duopoly: with Google, it controlled the global app marketplace. The “duopoly” part of the argument is pretty much incontrovertible: As of October 2022, both Apple and Google control 99.43% of the global smartphone market between them (via StatCounter). Both get a 30% cut of everyone’s action on its marketplace. From the perspective of Coinbase, that took too much money out of too many elements of its business.

Epic sued over that and, as noted above, won with an asterisk. Apple had restricted in-app purchases, and courts found that anticompetitive, but did require that Apple get a 30% cut of the profits, even though they took place in someone else’s app. In short, according to the Verge, the court said that if you’ve found a way to make money using iOS, you owe Apple 30%, period.

Epic thought in-app purchases should be exempted from the tax. Coinbase thinks elements of the NFT development process — in this case, gas prices to run the processing equipment necessary to mint NFTs — should be exempt from Apple’s app tax. Apple treats all user expenses on an app as in-app purchases and, per the Epic court decision, in-app purchases mean Apple gets a cut.

It’s not a simple problem, and it’s not likely to be solved anytime soon. Stakeholders and regulators have barely begun to integrate cryptocurrency and NFTs into the conventional marketplace. Who gets paid for what is likely to be a conversation for years on end. For now, all that’s certain is that conversation has begun.

Continue Reading

Trending