Vodafone, Europe’s largest cell phone firm, reported Tuesday slumping roaming revenues because the coronavirus slashes worldwide journey whereas it warned of elevated cyber assaults by criminals making the most of the pandemic.
“In April, we’ve got seen roaming in Europe fall by 65 to 75 p.c,” the British group stated in an earnings assertion that confirmed Vodafone on the identical time benefitting from prospects in lockdown shopping for extra knowledge and including mounted strains.
“The financial impression of the COVID-19 pandemic in (all) our markets, while unsure, is more likely to be important,” the group warned after it massively narrowed its annual losses.
“We’re experiencing a direct impression on our roaming revenues from decrease worldwide journey and we additionally anticipate financial pressures to impression our buyer revenues over time,” it added.
On the upside nevertheless, Vodafone stated cellular knowledge had elevated 15 p.c and stuck line utilization was up as a lot as 70 p.c in some markets.
“On the one hand, there was an inevitable spike in using knowledge site visitors which performs into the group’s fingers, and the effectivity and availability of its networks achieve additional significance in occasions equivalent to these,” famous Richard Hunter, head of markets at Interactive Investor.
“On the identical time, decrease worldwide journey has impacted Vodafone’s roaming revenues, whereas the very actual risk of cyber-attacks has additionally elevated over the past couple of months as each people and firms are focused.”
In its replace, Vodafone stated it anticipated “a continued improve in quantity and scale of financially-motivated cyber assaults”.
It stated “criminals and different subtle risk actors are utilizing the disaster as cowl to broaden or proceed their actions towards all sectors, together with Vodafone and our prospects.”
The corporate stated it had “heightened” its safety.
Vodafone added that annual internet losses had improved dramatically following the non-repeat of remarkable prices.
It suffered a loss after tax of EUR 455 million (roughly Rs. 3,710 crores) in its 2019/2020 monetary yr to the tip of March.
Nevertheless that marked a serious enchancment from a EUR 7.6-billion (roughly Rs. 62,000 crores) loss in 2018/19, when it took a large hit on the sale of Indian property.
Vodafone had additionally taken an enormous writedown on the shrinking worth of property.