Vodafone Group Plc (LON:VOD) is holding a virtual briefing for investors and analysts today for Vodafone Business, which will be hosted by Vinod Kumar (CEO) and Sateesh Kamath (Finance Director). The event provides an overview of Vodafone Business, which is a key growth driver for the Group, representing 28% of service revenue.
Through a series of video presentations and case studies (available at investors.vodafone.com), we outline the market structure, our unique scale & capabilities, our recent performance and our growth strategy. In addition, a live video Q&A webcast will commence at 2.00pm GMT on 18 March 2021.
Key highlights from the event:
1. We operate in attractive markets ⫶ We serve over 6 million private and public sector customers of all sizes, across Europe and Africa, in addressable markets totalling over €100 billion. With more employees seeking flexible working, gigabit connectivity with low latency now possible and both public and private organisations driving digitisation, we have a compelling structural opportunity, with expected addressable market growth of c.8% p.a.
2. We have unique scale & capabilities ⫶ We have the scale, expertise and technology to successfully compete in these attractive markets. We are expanding our portfolio of products and services to enhance our provision of core connectivity services, with in-house innovation in IoT and partnerships with leading technology companies to offer cloud, security and unified communications services.
3. We have strong operating momentum ⫶ Over the last three years, we have delivered a step-change in our commercial performance, leading to service revenue growth (excluding roaming and visitor revenue) of 3.2% in Q3 FY21, with total service revenue now over €10 billion. This has been driven by ongoing improvements in our commercial momentum, strong support to our customers throughout the pandemic, clear understanding of our economic model and disciplined prioritisation of high marginal return on capital opportunities.
4. We are on a clear growth pathway ⫶ Our strategy is grounded in our Purpose to connect for a better future and is focused on three core elements. Firstly, to be the trusted partner for small and medium-sized enterprises. Secondly, to be the gigabit connectivity provider of choice to large enterprises. Thirdly, to be the leading end-to-end provider of IoT solutions for every organisation.
Through delivering this strategy our medium-term financial ambitions are to:
· deliver above-market revenue growth in fixed & mobile connectivity;
· deliver double-digit revenue growth in cloud, security, IoT and unified communications services;
· optimise our balance of EBITDA growth and EBITDA margin; and
· invest in high marginal ROCE opportunities, to deliver consistent ROCE growth.
Vinod Kumar, Vodafone Business CEO, commented:
“I’m excited to be able to share the Vodafone Business story with you today- who we are, who our customers are and how their needs are evolving. We have developed a unique combination of scale, breadth and capabilities, which enables us to deliver a market-leading experience for private and public sector customers of all shapes and sizes.
The events of the last year have highlighted the critical role that fast, reliable and secure connectivity plays in powering businesses, governments and our essential public services. We responded rapidly and comprehensively, supporting a step-change in our commercial performance. We are on a clear growth pathway that will connect people, places and things for a better future and create sustainable value for our shareholders”
