Vodafone 2015 Annual Report Download - page 19

Enterprise
Services to business comprise around 27%
of our Group service revenue, and 32%
in Europe. Vodafone has a strong position
in mobile enterprise, leveraging our trusted
brand and network reliability. We are
increasingly using this strong platform to win
more international business and move more
deeply into xed line, which is a rapidly growing
trend within Enterprise as well. Half of all
new proposal requests in Vodafone Global
Enterprise (‘VGE’) ask for converged solutions,
and xed is now 25% of Enterprise service
revenue. At the same time, through Project
Spring, we are investing in strategic growth
areas such as Cloud and Hosting and M2M,
which promise to be signicant growth drivers
in the future.
VGE, which provides services to our biggest
international customers, achieved revenue
growth of 1.8%*, as multi-national corporations
continued their trend of seeking a single
provider of services across borders. In M2M,
we increased the number of connections
to 21.5 million from 16.1 million last year,
and acquired Cobra Automotive, a provider
of value-added security and telematics
services to the automotive industry.
M2M revenue grew 24.7%*.
Unied communications continues
to be a rapidly growing trend within Enterprise.
Vodafone One Net, our cloud-based integrated
xed/mobile service, now has 3.9 million users
across 11 markets – up 13% year-on-year.
Dividend per share pence
10.19
2013 2014 2015
11.00 11.22
9
10
11
12
Growth in dividend per share
We increased the dividend per share by 2.0% this year
and we intend to grow this annually
Outlook
There are strong reasons for optimism over
the future of the telecoms industry and
Vodafone’s position within it. We are leading
the way in increasing investment, which will
signicantly enhance the quality of service
to customers. Ongoing consolidation in the
sector will lead to fewer, healthier companies,
and competition increasingly based on service
differentiation rather than price alone. On the
regulatory front, headwinds in Europe are
easing, although India continues to introduce
new measures that will limit growth in the
short term.
The coming year will be another very
important one for execution, as we complete
the Project Spring build programme and
continue the integration of KDG and Ono.
At the same time, we will take further
measures to stabilise average revenue per user
(‘ARPU’) as usage continues to grow strongly.
Our priority is to ensure that we give customers
– whether individuals or businesses,
mobile or xed – the best possible service.
This is not just about providing the best
coverage and connectivity, but also about
making everything about being a Vodafone
customer easier, clearer and more reliable.
Signing a contract, adding more services,
understanding or challenging a bill, seeking
help and advice online, over the phone
or in one of our shops: we aim to improve
every aspect of the customer relationship
with Vodafone.
By the end of the coming nancial year
we expect that the clear improvements
in network performance delivered by Project
Spring, combined with a more consistent
customer service experience, will begin
to be reected in stronger customer
satisfaction. This in turn should reduce
churn and, combined with continued
strong growth in data usage, stabilise
ARPU. Although cash ow will continue
to be depressed in the coming year given
the high levels of investment, our intention
to continue to grow dividends per share
annually demonstrates our condence
in strong future cash ow generation.
Vittorio Colao
Chief Executive
Overview Strategy review Performance Governance Financials Additional information Vodafone Group Plc
Annual Report 2015
17