Vodafone Spain gains 925 million euros year 2021 - The price war of the sector eats the increase in revenue by 'roaming' Vodafone Spain: the operator enters 925 million for services until June, 0.5% more than a year ago.

Vodafone Spain entered 925 million euros for services in the first quarter of its fiscal year, which runs from April to June, representing a slight growth of 0.5% compared to 920 million a year ago, according to the results presented by the group. Revenues continue to be weighed down by the tough price battle, although they improve with the return of tourists.

The total revenue of the operator in Spain in this period amounted to 1,030 million euros, which represented an increase of 3.6% compared to 994 million euros a year ago.

Vodafone Spain gains 925 million euros year 2021

The improvement of these data is partly due to a normalization after the hard confinement lived a year ago, where the operator noticed the effects of the paralysis of tourism on roaming revenues. This year, despite the fact that international tourism remains far from the records set in previous years, the return of travelers has served to improve accounts.

The first fiscal quarter has benefited "significantly" from a relaxation of restrictions related to the COVID-19 pandemic, according to Vodafone in a press release, in the face of the "strict" measures put in place a year ago, within which restrictions on portabilities came into force. "However, this has been partially offset by continued price competition," the group notes.

In group terms, Vodafone entered 11,101 million euros, representing an increase of 5.7%. In the case of services revenue, it recorded 9,390 million euros, 3.1% more than in the same quarter last year.

Vodafone Spain gains 925 million euros year 2021

Within the business development, the group highlights the growth in both the consumer and business segments.

The telecommunications sector in Spain has been seeing for several years how customers move towards what within the sector they call low end, that is, the brands that offer lower rates. In this sense, Vodafone has also opted for its second Lowi brand.

"The market remains highly competitive, especially in the value segment. We grew our database of mobile contract customers by 27,000 users this quarter, " explains the company. "Our second brand, Lowi, grew by 60,000 mobile users creating a total customer base of 1.3 million," they add.

” We are pleased to have completed the first quarter with an improvement in service revenue compared to the previous year, although the trend in commercial activity continues to be marked by a strong competitive intensity and a market drift towards low value, " said Colman Deegan, CEO of Vodafone Spain, in a statement.

Vodafone Spain gains 925 million euros year 2021

In the case of Spain, they highlight that the availability of the 5G network and advanced digitization services have been key to the consolidation of Vodafone in the sector of Large Companies, with new contracts such as the award of Red.es which will provide connectivity to more than 100,000 students in five autonomous communities.

Also, during this quarter, the operator has announced the creation of a European R+D+I center in Malaga, dedicated to products and services of the future, which will mean the creation of more than 600 jobs, incorporating new highly qualified profiles.

Vodafone has acquired this week 2x10 megahertz (MHz) of spectrum in the 700 MHz band in the auction carried out by the Ministry of Economic Affairs and Digital Transformation for 350 million euros (starting price of the purchased block).

"Spectrum is subject to the annual spectrum reserve fee of 15.5 million euros. Vodafone will use this spectrum –with a duration of 20 years and automatic renewal for another 20 years, extending until 2061— to continue offering a differential service in the Spanish market, expanding the footprint of coverage extensively nationwide, and offering better coverage and services also in buildings interiors", explain from the company.