Vodafone user revenue falls

January 29, 2002 Posted: 1426 GMT

LONDON (CNN) -- Vodafone, the world's biggest mobile phone operator, said on Tuesday third-quarter user revenue in major markets fell as the market weakened.

The UK company said average revenue per user (ARPU) in Britain fell to £274 ($386) in its fiscal third quarter, from £281 in the previous quarter. ARPU in Germany fell 14 to 303 ($261) while in Italy the number was flat at 332.

Meanwhile, the company said data services – such as text messaging --  accounted for 12 percent of total revenues in December compared to 10 percent a year earlier.

With the mobile phone market reaching the saturation point, the focus is now on increasing revenue from existing users. Vodafone shares fell 2.2 percent to 157 pence in midday trading in London.

Chief Executive Christopher Gent said while average revenue per user has been stabilising, he sees growth continuing into 2002.

"In the year ahead, we expect some improvement in ARPU, as activity levels increase following the heavy period of customer growth in the last year, and as further voice and data services are introduced in our markets," he said in a statement.

Vodafone said it added 4.2 million customers in the three months ended December, taking its worldwide customer base to 99.9 million.