Red telco lost almost one million Australian customers during the last financial year, new figures show.Vodafone Hutchinson Australia had just under 5 million customers by the close of FY 13/14 – a fall of almost one million, compared to year end FY12/13.
The telco began haemorrhaging hundreds of thousands of users in particular between the end of Q4 FY12/13 and during the first six months of the financial year FY 13/14, which ended on March 31.
During the first months of FY 13/14 (April-June), almost 400,000 fled the network, and customer losses were also acute during Q2 although improved during the first three months of 2014.
That’s according to figures released by Vodafone Group, owners of 50% of Vodafone Australia, for year ending 31 March 2014.
Vodafone has over 1 million customers on 4G and has rapidly ramped up its service, offering incentives like cheap international roaming, revised ‘Red’ postpaid plans offering double data allowances, and fixing the once woeful 3G network, which led it to be branded Vodafail.
The Vodafone Group’s Australian services revenue declined 9% as a result of a lower customer base stemming from service issues in prior years.
However, there was strong margin improvement.
“The turnaround plan remains on track, yielding improved levels of network performance, net promoter score and customer base management,” Vodafone Group said in a statement.
Vodafone recently hired a new CEO, Inaki Berroet, after ex-boss Bill Murrow left to head up the NBN Co. The telco is 50:50 owned by Vodafone Group and Hutchinson Australia.
