Vodafone's business declines but profitability remains steady

Revenues of Vodafone, the second-largest player on the Romanian telecom market, fell by 21% in the April-September period, to 486 million euros amid the economic recession, regulations and competition, but the company managed to keep its operating margin at the same level as last year. “Although revenues fell significantly, our operating profit as percentage of our revenues remained almost the same as last year, at 44.5% this year, compared with 46% a year ago, despite the unfavourable economic conditions. This shows we took the necessary steps in due course and managed to offset the revenue contraction,” Liliana Solomon, CEO of Vodafone Romania, one of the top 10 companies in Romania, told ZF. Under the circumstances, Vodafone’s EBITDA (earnings before interest, taxes, depreciation and amortisation) fell by 23%, to 223 million euros. The number of Vodafone clients went up slightly, to 9.53 million. “Mobile phone sales on the Romanian market have seen a decline, low-cost terminals accounting for the bulk of sales, with consumers being affected by the recession and the depreciation of the RON against the euro,” adds Liliana Solomon, CEO of Vodafone Romania, the second-largest player on the Romanian telecom market.