Vodafone Australia still in the red

Vodafone Australia appears to have halted falling customer numbers, but is still making heavy losses.

A Vodafone store in the CBD, Sydney

Vodafone Australia has made a loss of $184 million in the first half of 2015. (AAP)

Vodafone Australia made a loss of $184 million in the first half of 2015 despite growth in customer numbers and revenue.

The telco completed a massive overhaul of its business in 2014, aimed at ending an exodus of customers.

Customer numbers rose in the second half of 2014, and another 6,000 joined Vodafone Australia in the six months to June, according to figures from Hutchison Telecommunications Australia (HTA), a joint owner of the company with Vodafone Group.

But with a customer base of 4.86 million, the telco remains well behind its rivals.

Telstra has more than 16 million customers, while Optus has 8.25 million.

Vodafone Australia's revenue also rose in the first half of 2015, to $1.77 billion.

But HTA's 50 per cent share of losses from Vodafone Australia in the six months to June was $91.8 million, indicating the telco's total losses amounted to $183.6 million.

That is worse than a total loss of $159 million in the first half of 2014, but an improvement on a $445 million loss in the six months to December 2014.

Higher costs of handsets and variable content, plus the negative impact of a stronger US dollar on its finance costs contributed to the half year loss, HTA said.

Vodafone Australia will continue to focus on customer service, improving its network and expanding its business customer base, HTA said.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world