Vodafone struggling to grow mobile customers

Credit: NRMA Motoring Services

In the six months to end of June 2016, Vodafone added just 7,000 new mobile subscribers – compared to 119,000 it added in the six months to end of December 2015.

The good news is that the company’s losses are narrowing, with 50% partner Hutchison Telecommunications Ltd (ASX: HTA) reporting a half year loss of $65.7 million – compared to $90.1 million last year.

Average revenue per user (ARPU) has dropped, and now Vodafone has similar statistics to competitors Optus and Telstra Corporation Ltd (ASX: TLS). Both companies have yet to release their results – so we won’t know until next month whether they face similar issues in growing customers.

Vodafone now has 4,986,000 customers with 3.3 million of those on post-paid plans.

Mobile customers Jul 2016

Source: Company reports

That suggests that Telstra and Optus are maintaining their dominant market share of the mobile market.

Foolish takeaway

For Telstra shareholders, it’s good news, and the giant telco appears to be maintaining its lead in its most important market. Mobile generates the majority of revenues are we illustrated here.

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Motley Fool writer/analyst Mike King owns shares in Telstra Corporation. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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