Vodafone 1998 Annual Report Download - page 47

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Annual Report and Accounts 1998 - Review of Operations - International
Key roaming agreements are now in place ahead of the 1998 tourist season and the company should
benefit from the increased usage of the network by visitors.
Pacific Rim
Vodafone Network Pty Limited in Australia had an excellent year, marked by a significant
improvement in both financial performance and market share. The strategy implemented last year to
strengthen the management team and expand distribution channels is now bearing fruit, with the
network operation passing break-even in the first quarter of 1998 and its customer base now exceeding
545,000.
The company's network is entirely digital, so is well placed
to gain a significant share of the remaining 2 million
analogue users who are expected to switch to digital as
the analogue frequencies are removed from service over
the next three years.
As in the UK, the Group's increasing emphasis on
distribution has led to the three loss-making service
providers being refocused into a single service provision
business under the Vodafone brand name. The progress
made in the last year should mean that the Australian
businesses achieve overall profitability in 1998/99.
Vodafone Fiji Limited is trading profitably and benefits
from tourists using the network.
Vodafone Malta Limited launched its GSM
service during the year.
Rest of the world
Vodacom Pty Limited in South Africa has enjoyed spectacular growth in the last year and now has
979,000 customers, representing an increase of 77% in the year and a market share of 55%. This is
largely due to the success of the 'Vodago' prepaid product which has a customer base of 262,000,
emphasising the importance of this type of product in South Africa.
Vodacom is profitable and should be cash flow positive during
1998.
The Vodafone Group's twin commitments to the
community and the environment have no better
expression than in the continued provision of community
services to the less privileged and in the development of
ecologically friendly base stations.
Celtel Limited in Uganda is a small, profitable operation
with a customer base of almost 7,000 users.
In Egypt, the Misrfone consortium, in which the Group
http://www.vodafone.com/download/investor/reports/annual98/reviewops/international.html (3 of 4)29/03/2007 23:08:12