Q3 2021 Vodafone Group PLC Trading Statement Call (Q&A)
And some recent improvements and the pricing landscape at a lower rent as of the start of January and not in the quarter itself and.
And importantly, with starts and the migration process of and new N V and other contracts onto our net book, which will be a positive for next fiscal year and the U K. We continue to maintain good commercial momentum and as you saw we put through in December our new <unk>.
I think of CPI, plus three 9% for new customers.
In Spain and service revenues continue to stabilize further so quarter over quarter improvement and we managed a price increase and the month of November and what was a highly promotional and intensive quarter and I think we landed that very well.
And Vodacom good strong performance continues in South Africa, and importantly, and the international markets.
Zero rating of peer to peer has now ended in the month of January for all of our markets. So we are now charging again.
For and peso.
And Vodafone business, which is about a third of that business really good growing share and strong demand for our products.
And high usage, given the pandemic, so we've really seen a tailwind for business and for ads.
Good overall performance therefore.
Underscores our confidence and our full year outlook, and we reiterated our guidance of over 5 billion euros of free cash flow.
Importantly, we continue to make progress on our strategic initiatives, we were able to commercialize the joint venture with tariffs.
Telefonica and the UK on towers, and therefore, allowing us to move and 50% underneath voltage towers, which is firmly on track for early this year I P O.
So on that let me hand over to you all to ask questions about growth from myself.
Thank you very much Nick I will first question comes from Maurice Patrick from Barclays.
I'll now non.
Please go ahead.
Yes, good morning, guys.
Thanks for hosting the call today, a question maybe on the trajectory of Suezmax and use.
Okay.
You saw and improvements this quarter with you called out much of that seems to be the lower revenue and drag I think Judy.
And I know quarter, I guess and this quarter I guess.
And I'm not I expect you to give guidance for the cost of the hedge on Sirius revenue, maybe give us a hand with some other puts and takes for the fourth quarter and maybe for next year I mean.
I'm sure you'll talk about the continuing revenue and drag and the fourth quarter, but given you are growing by 1.8 per cent now ex pats and as we see a gradual recovery and I hope so.
And I that youll see accelerating growth.
Next year and so it maybe thoughts on that would be helpful. Thank you.
I would be Margarita.
Sure.
Hello, Maurice Yes, so yeah, we're very pleased to be integral back into growth and I would say firmly back into growth.
Good day.
Nick mentioned, the fact that our growth rate, excluding Jerome and drugs is now one eight per cent for the group worth noting that way I also back to growth in Europe, excluding roaming.
I think you were I.
Encore Tessa I.
I prefer to avoid.
Giving specific guidance as you know and point climb is is less than 10 million for the group. So we would avoid that but we and.
Definitely looking into next year I think acceleration for this growth.
And I would call out two reasons for that.
The first one is the strong demand for our services that Nick mentioned.
For the full business is today backing to growth, including the drag on travel.
Growing 1% and if you exclude the drag from roaming is growing more than 3%.
We see we see strong demand across the whole spectrum of segments in business I would say from the public sector, all the way to Smes and it's particularly strong around fixed connectivity and digital products, we really believe that in fixed we are seeing.
A growing market in which we are also specifically growing share and.
And maybe to give you more information on that we and as you know and Investor day dedicated to the business coming off because it's a third of our revenue and important point. So number one is demand and number two is also commercial momentum we have had locked down in Europe again in Q3, but I have seen from the result.
We have maintained good commercial momentum, particularly in Germany I think.
I mentioned, the almost 100000 connections in cable, but also similar volumes in Mumbai.
So good performance maintained despite the lockdown.
On the back of this we are really looking forward for come into Q1, where we will see the underlying performance and much of the growth rate for the group and our focus as I said would be and see this accelerating over time.
Great. Thank you.
And just maybe one and build a mercury two points.
I mean, a lot of momentum as you can see from her and her summary, I I'd also say just the pricing climate.
You're basically seeing customers are showing a deeper.
Deeper appreciation for quality networks.
Youre also seeing I believe governments regulators started and who understand the need for investment into high quality net worth and therefore, the industry needs to earn a return and I think there's a little bit more latitude to discuss pricing.
And this environment and therefore as I said with U K has got the new formula, which it seems to be adopted by most of the players and the industry you've got Germany, now just putting through under the draft.
Rules.
And a simpler way of doing price, increasing you've got a sales and Seth increased prices over the quarter, and Spain, and Youll see the low end and <unk>.
Italy, So I.
Just I think it's a climate when people start to appreciate the quality of networks and that gives a little bit and while I wouldn't say strong pricing power, but I, just because a little bit more latitude to do targeted multiple pricing.
Great. Thank you very much.
Thank you Mark Oh and.
Next question comes from Sam <unk>.
Mchugh from Exane.
You know I. Please.
Please go ahead.
Alright, I am just quick question for you can be actually and I apologize if I got was from some of your Investor Day, I guess, because he was one of the good parts this quarter.
You flagged out I am fixed fee to be growing around 5% and so I guess, the implication for mobile store falling one or 2%, but I.
Wonder if you could give us some color on that mobile decline and it's not just roaming I'm just trying to understand that for core <unk> mobile business stabilized in terms of pricing and I am subscribers and then do you think youll be three business can outgrow and our consumer business and the medium term.
And you're absolutely right the drag on <unk>.
Bye bye.
Revenues in our business is coming from roaming excluding at all I mean, we're also seeing and accelerating momentum that I and I think this is quite important we are seeing and accelerating momentum, particularly in our main markets.
U K and Germany.
When I was saying that he has strong demand that is also strong demand for some of our mobile products.
<unk> does for example, Iot, which is within mobile and we have had the I think the highest quarter of Iot connection and Q3 since at least for a four and yet saw a record quarter and.
And when we also talk about public sector demand, we see and increase demand for mobile connectivity coming from from.
From these adding a so so I I I.
Definitely I would say that mobile as well is on the up and the only reason why it's negative is it all means again next year as we lap into Q1, when we see the roaming drag for away and then at some point in the future and which I think is yet to be determined there only may also become a tailwind which will be particularly.
Important in business.
Yes.
And just one quick payout I do think that a lot of incumbents are associated with the legacy, whereas we're seen as more of a free.
Most of and sets of products and services and so now the all smedes and public sector. Some of Rich's point of waking up for the day.
I will close out by the pandemic and they need to digitize and I think that they are turning to us because I think they see us as a modern solution set which I think price restaurants.
And prospect for caring more about that.
Thank you Sir.
Thank you Tim.
Our next question comes from Georgia at Citigroup.
So I Trust you all now live please go ahead.
Good morning, Thank everyone for me for my question.
And I just wanted to talk a formula on the price and currency we had earlier.
I don't briskly and price increases along with very well and the U K because everyone core node and spending it looks like there is a small increase in term for.
For loan product moving to <unk> or maybe other market dynamics.
It will be possible to give us an idea of how youre thinking about different markets over the next year and the common rumored or term army, whether it's something I could be implemented shortly for whether it takes a couple of years for the repair.
Okay.
The churches and what I would say is you know pricing is very specific to each individual market and each individuals where the price tag list today.
While the competitive intensity and objectives of different players are so what I would say, specifically about Spain and it wasn't really the price increase that was the key driver. It was more of the fact that the market got more aggressive I think orange wants you to reassert itself in the marketplace.
And I made a stronger promotional play and some repositioning you had a number of other low and brands reposition as well with Virgin coming into the market. So I would say, it's more to do with everyone repositioning around us and then ultimately we repositioned to those new prices and early.
And as December So we saw December and January we went and net port positive again, and so all I'm, saying is we've set for Spanish business ought to be able to compete if people lower price at the same time, where there's opportunity to do more for more which we did we did if other Susan.
We will tighten our onboard as well so I consider us a very rational player I think I think Italy, I would call out of the market that wasn't able to do any pricing actions and normally we do do pricing actions I think next year deployment could be a bit different I think all players need to improve.
Formats and returns I would say the German market has been pretty benign for a while now also and not saying, but you should expect.
Headline pricing action, but but I think for you will see is more for more and wherever possible and might be more price actions.
Thank you.
Thank you very much churches and our next question comes from Carl Murdock Smith from <unk> and Duck.
Your line is now open. Please go ahead.
Good morning, and thanks for the question and I just wanted to ask about the acquisition of <unk> Deutschland minorities.
And what ways will this help to simplify and improve the efficiency for your German operations and also I kind of why now.
And why the decision to acquire the minorities now as it's accretive and credit rates and neutral.
Stopped you from achieving that previously thanks.
No what I would say is it's not really and operational impact per se.
It was a lot more to do with the fact it was financially attractive.
Essentially as you say it was both.
Adjusted EPS and free cash flow per share.
Accretive immediately and it was neutral to our credit rating I think importantly.
And to your point of timing look face disputes and Germany can run Deca and he says you saw with Madison. So so at some point you don't want the destruction and at some point you want to try and eliminate any possible downside scenario, which they stayed at an attractive price.
Maybe just to add that in terms of being able to find them and getting them to have an attractive price. We just said that I received a favorable ruling from the Munich Court, which may have supported our case.
Yes, furniture and that's great.
Thanks very much.
Thank you very much Carla.
Now the next question is coming from Robert Grindle, Please bear with me.
Clearly robot gets specialized treatment.
Robert Your line is now open. Please go ahead, yes, thanks very much good to see you both.
And you have decided to split your technology division and the Johan and to networks unit and I think its digital and I T.
Please could you share some of your thinking behind this move.
And is it is it about sort of cost and efficiency are you thinking more along the lines of euro and that's what coke and a service can separately and if that's the case does that apply to fixed as well as mobile. Thank you.
Robert I I'm really pleased you asked the question because I actually these are all significant changes we're doing non U.
Operating model of the business.
And I wouldn't describe and the way you do it so maybe if I could have it go as described and slightly differently. So and so what we're doing is we are driving greater standardization across network and IC and digital.
So today, we are organized with CTO and each of the markets and then we have group functions. What we are doing is vertically integrating those functions network and Oh I see digital for the whole European group.
So as I Act as one organization driving a standardized roadmap I.
And I believe what this has delivered for US is it leverages our true group scale.
It drives greater efficiency, because standardization drives efficiency and the third is to improve speed to market of the products and solutions, we're bringing to market.
So there are for components first is and so.
It's a new group of product development process. So I imagine we will have one group roadmap for products. So let me pick an example, consumer Iot you will see and US develop one platform for the group and <unk>.
And one set of products that they can get launched across the footprint. So that's where the speed to market control. The second thing is we are focusing on platforms and we are going to place platforms as centers of excellence. So you might have consumer Iot as one center of excellence.
Reward nights and a distributed model across our European footprint.
The third is we're going to in source I see development engineering capability versus what has been historically outsourced we already have a significant and sourced activity, but we're really going to scale that to develop your own IP going for its Mike and our differentiation is stronger.
And then finally, we're going to use those standardized platforms and integrated European.
Organization from a technology perspective to make it easier for third policy strategic.
Partners, the Microsofts, the Amazons et cetera.
Net with our platform and go across our footprint and seamlessly and I stayed so an example would be AWS and edge computing as an example, or a sensor and their security products. So this is really turbocharging Vodafone to deliver on a big a vision of and.
And next generation telco from more of a classic telco historically.
Of course in the process of doing all of that there are significant synergies.
It will help support the 1 billion Opex target the three year targets, we talked about before but also it provides us the resources to invest and growth going forward and maintaining that balance so I.
And it's a really big move for us.
Sorry to add something that I've been very fast and ethanol. This is as Nick nodes I think it's a great move in terms of return on capital because our investments will go for that when we get the more growth.
And for our investment by wherever possible in that fund and deploy many times I think it's a natural evolution versus where we were looking for great steps to maximize the potential of the group.
Great. Thanks.
Thank you very much Robert our next question comes from Adam Fox Rumley from HSBC.
Your line is now open. Please go ahead.
Thanks, very much I actually.
I wanted to ask about the cost implications. If you will new greenhouse gas emission reduction targets. Please because while 2040 is a long way off I think youll scope three target is very ambitious.
Especially and so.
Wondered if you could comment on more.
Extra costs involved and the medium term to get that going or just the timeframe mean that you can just wrap it into your existing operating plans. Thanks for.
And then could I can I, just say I firmly believe and I are exco believes that.
It's more a question of we called for a for the cost of not taking action.
More than obsessing about the cost production. If you think about the future next 10 years 20 years, you think about carbon tax do you think about regulation do you think about government multinational core for bids and how you qualify we think inaction would be very very expensive, our energy Bill and Bob.
Greater correct me if I.
Wrong, and something like <unk> 7 billion.
So so we are concerned that that would only escalate at a rapid rate with carbon taxes and various other things. So we think this is rich.
I spoke to are all from a society perspective, but also a very rational from a business perspective, as well, which is why we feel this is a win for all stakeholders.
Maybe worth adding that we are starting to win some business on the back of our environmental objectives. We have recently done and probably I cannot specify which one but you can start to see that our environmental credentials and become a critical factor and winning business in Vodafone business.
And I, Italy, and Germany, and excellent set already 100% renewable and the rest of Europe will be there by July and this I think is an important step for almost conscious customers.
That's a really interesting answer thank you.
Thank you very much Adam.
Our next question comes from James Ratz from New Street sales.
Your line is now open. Please go ahead.
Good morning, Nick Good morning, Marguerite difference very much.
Great set of results and encouraging commentary about returning to growth so with that in mind.
I just love to hear an update on your thoughts about potential cash return to shareholders I think in the past and you've talked about considering incremental returns when you got down to two and a half times net debt to EBITDA.
And that still you're thinking at this stage are you willing to share more flexibility around that especially with the upcoming launches towers IPO.
And if I could talk a very quick extra one you flagged in Italy, the post pay and EG and could you quantify what the revenue run rate today. This will be when that fully integrated onto your Italian business. Thank you and.
And we'll leave both for your moderator. Thank.
Thank you Yannick.
Any thoughts to share on that as you know as James we are free capital allocation priorities for us.
First is invest in our clinical and network infrastructure. The second day. He's deleveraging for your point, we have a clear intention to move towards the low what I and of our three to two five times net debt to EBITDA range and the third is provide attractive return to shareholders.
On leverage we I really focus now and moving down so that's the priority we are thinking about and you should think about for the.
Coming mountains I think the two key leave us that for us would be the return to growth we have talked about revenue today, but we clearly see ourselves.
After the Covid pause to be back into EBITDA growth next year and this will be a key driver for deleveraging and then also the IPO of our advantage and then probably as you may remember, we have a mandatory convertible bonds approaching maturity first cash in March.
And we like to deal with that so I think.
Nothing surprising I would say compared to what we have always said, we would do focus on deleveraging.
Oh, and your second point on <unk> deals and Italy, two deals, but two very different deals D. G and Italy. He says they small ethnic and D&O wife's postpaid <unk>.
Second largest and the market issue you should take out Gilead are the first fewer and D&O.
For a very different level of materiality, we have started the migrations now and of course I cannot disclose precise number because these are.
Private contracts, but in terms of phasing I think you should expect for.
Foster to reach run rate around the althea and sort of grow between now and then.
True.
One build on the on the dividend point I really feel that.
Lowering our leverage to the lower end of the range, we will remove the discount I feel we'll get and on the dividend and we already do pay.
Given the dividend yield and the share price, where it is so I think it's an important consideration on the share price itself.
Alright, thank you.
Thank you Jake help our next question comes from.
Thank you James Our next question comes from Jacob for stem from Credit Suisse.
Jacob you are on line. Please go ahead.
There are amused today for panel, who you are if you couldn't go on mute yourself. Please.
Jacob for your window for.
And because we continue and I think Greg. Please go ahead.
Great. Thank you.
I had a question on.
And your thoughts post the acquisition of <unk>, but I am.
<unk>.
Could you maybe share a little bit what you think it means first of all.
For the sort of towers market, but also what is your current thinking longer term about the impact from Grillage, given there's more support coming from more independent tower companies and how do you think that will impact your retail business for long term and Germany as that becomes more of a reality. Thank you.
Yeah, I looked at how it looked it was an interesting transaction and I think it might be reflect I think first of all.
I feel two years ago, we made the right decision.
And to stand up a sales as a separate business with a dedicated focus because we took the view that consolidation will play out in the European market that day.
This would be an important asset and are sort of digital world going forward with digital society. So number one I am very pleased that we did the action when we did because now we're very much and are positioned to shape the market with vantage sales. So I think it's well equipped to do that.
I think and secondly, the multiple was and attractive multiple ones. So a nice reference to have out there and I think third for me is just.
It really highlighted just what an opportunity the German market is and I think voltage sales is very much positioned to do well and the German market. So from my standpoint. These are all positive I don't think it's overly change the competitive landscape. It was always going to stay.
Layers, where they're already I think I was having a dedicated team of dedicated focus.
Having the high quality assets and the ability and balance sheet to growth both organically and Inorganically I think was really important to position at this moment in time.
So look I.
And they will examine German opportunities, one and one will be one of those opportunities that they will actively reeves.
Our review and participates in and as you would expect I think.
And from a 101 perspective look.
The good news out of these telecom dropped telecom law.
Was that there was.
Still no mandatory obligations and national Roman and still to be commercially negotiated and of course, we are actively participating and that so they have to decide to stand up the network and the cost associated with standing up that network clearly the focus is going to be and the more urban areas.
And I only have a certain amount of spectrum.
So spectrum will not be the same and so therefore, the network quality will not be the same so I see them as participating in an area of the market, where there are second brands and other value brands today.
And of course, we will have to adjust our strategy to compete on different value segments with our position, but I still think strategically you stand back on her own position and we have a truly unique differentiate two gigabit network now cover and 22 million homes already we've got century don't want road.
And now with high quality mobile network and.
You see the momentum in our most recent quarterly results.
Thank you.
Thank you very much J com.
Our next question comes from account autonomy at J P. Morgan I kill your line is open. Please go ahead, great day, Hi, good morning.
And just a quick question on.
The topic of in market consolidation. Please.
I guess as I'm sure you've seen and there's a lot of speculation on speed and at the moment and the prospects and potential deals. There I'm sure. There are limits and some of what you can say, but I guess some high level comments in regards to your thoughts around the organic versus inorganic options and the market and your specific question around is just to understand.
If you ever were to consider a deal if.
If consolidation a mandatory requirement for any transaction or would you consider other options, which could lead to deconsolidation like and Vigo and then just to kind of follow up question, which is a bit broader.
When we think about regulation and Youll see talked about regulatory issues in Europe and.
To what extent does the UK consolidation decision from the European Parliament matter how.
Significant is that when we think about the prospects for board of consolidation in Europe.
Okay, I feel about the multi level question.
I.
I would say with Spain, and not going to get drawn into what has been a long run and speculation.
And I think you see from our results.
Punished business maintains its momentum I think the repositioning we did really does strengthen us both commercially but also from a cost base perspective to allow us to compete all day.
Now clearly we have been still working.
How can we improve returns further and you got Digitization and you've got network sharing those benefits still to come within our numbers within the Spanish business.
I think so.
So I am pleased with our organic execution of course, we will always examine opportunities to enhance and strength for that business.
We laid out three core principles for all of our assets. The first principle was do.
And do we have local scale and then do we in addition leverage does that asset leverage our regional scale, Spain, where now and number two on retail and the Spanish market, we have scaled and space and it leverages a lot of the European regional scale going back to the question of railings and.
New operating model very much driven.
Benefits for the space I would say secondly, always setting with a credible and actionable plans to get return on capital above market, where you've seen the progress. We've made we think there's additional benefits still to come and I would say the third and then I'll read the best custodians of the assay or can someone else derive more value.
And of course, we've always said, we will look pragmatically at the situation of any situation and any market to ensure that we're doing the right things for our shareholders. So look for euro.
I I don't eliminate anything we evaluate we consider.
As to what's best for our shareholders.
And importantly understand the intrinsic value of the business in Spain, and the value that's brought through the synergies that we have as part of the old from group.
I would tell you there and secondly, just so that your points about the UK and regulation and achieved this week alone for Monday, I would I spent and air and a half with the director General of a series of policy setting of V C.
Yesterday, I was with GSK may I.
And another eight Ceos through Europe talking to commission a pretzel about importantly, two things one is how do we improve.
Returns in the telecom sector to encourage more private investments so non.
The public investment so what other things that would unleash investments one of which was consolidation.
And the Europe level at the end market level and at the infrastructure level. So you know discussing the importance and differences of those three as one of the aspects.
The second thing we were talking about was just that and by the way that was one of several things that we fail and needed to be done.
And the other important topic is where are the areas that the E C should be investing with the member states the.
750 billion and recovery funds and the 20% go into digital and of which I've talked about the five areas before things like rural coverage open ran.
And things like Digitization, and Smedes and public sector and so we've been clear about the different areas I think I think we're making really good progress on the allocation of funds from the recovery So the right target areas.
The commission is really trying to understand.
And how these components like consolidation and collaboration more cooperation amongst the industry.
Could be a purcell module.
So ultimately encourage more private investment and so I would say.
Some early day, so I I think that's more important than per se. The UK decision and I don't see day, you catch it was incrementally positive, but it's more this conversation that we're having is more shaping if if you allow us to do the following things. This is what it's going to mean in terms of investment coming into the sector.
That's super interest events.
Thank you very much.
Our next question comes from from Korea.
John can I just as from Numis. Please go ahead.
Thank you good morning to you and if.
If I may I wanted to ask a question about and.
Limited tariffs and simply because in the states.
Every quarter, Verizon and AT&T highlights the various net present value benefits, we're getting more of their customers onto unlimited tariffs.
I've got two parts to it one and mopped or some numbers and add to them. After some words on the numbers I am.
Trying to understand it and you're at tops for markets, probably not Italy, but the other three and.
And what proportion of your contract customers.
And on unlimited.
Now.
And then.
Secondly, what I'm trying to figure out is.
And if.
Whether the intensity of competition.
And for customers on unlimited tariffs.
Yeah.
Varies meaningfully versus the intensive competition.
And for customers on meter tariffs and I appreciate that's not the case and Spain, but could it be the case in other markets.
Moderator would you like for.
And our mills.
I laugh.
I will spend some of the non there.
And John.
And you asked what proportion of our customers are and non limit and you know the overall number is around 10 million now and it's growing fast in terms of our first slightly different position across our main markets and unlimited is not a feature of the German markets as you probably are.
And you're aware off across deal of their market.
The terms of the LIBOR base of postpaid contracts.
I have.
I will now taken upon limited and in fact.
<unk>, Spain, which is at the highest level of penetration of around 70% and then slightly long way I in Italy, and the U K and whether I would say, Italy also growing very strongly and for us and Italy, It's a great more for more initiatives that customers pick up.
And moving along too so.
Good progression in terms of number quarter after quarter and I noticed in terms of Apple we've not put it on the slide and this quarter because we wanted a short presentation, but as you know we do get Alco uplift.
Whenever we move customers to unlimited for.
From a competition perspective, I would say the key feature of unlimited Tel Aviv customers want it.
It's a very simple proposition for our customer and wholesale tons of interactions with us.
And Thats been problems you don't I hold the sort of questions that and kind of we told that office and it's a great simplification.
Which drives good net promoter score and then we felt was out activity and more for more and the non limited environmental which is to move customers across India.
The lower and after megabit per second to the upper end of unlimited and limited overall and we really see this as a key driver of our acceleration and performance as I talking at the beginning of the call.
About the fact that our underlying performance has kept accelerating throughout the year and in mobile and limited has been has been and.
And that either for that.
Thank you.
And I would also just one loss per share which is.
Unlimited opens up a bit of a gateway we talk about that we want.
Multi product relationship with our customers and therefore, Teva and anchor of unlimited is helpful for them building other products and services.
On top of that so in and ARPA accretive way and small groups and support so.
So it's strategic it's just we would like to go as quickly as possible and dependent on market conditions, but Margarita is correctly said, yes.
He is doing it and then all through accretive way and then having the speed tiers, allowing us to then tightened customer on a journey of <unk> accretion over the years to come as well as we rollout for <unk> et cetera.
Thank you both.
Thank you very much John.
Yes.
Yes.
Our final question comes from and truly.
Goldman Sachs Andrew Please go ahead.
And more.
Everyone I had a question. It obviously showed strong commerciality in the quarter. So I just wanted to ask about each day efficiency improvements on those sales and specifically the digital sales and as a proportion of the toso I think.
And it's 26% and of course it is that as high as you would have hoped given lockdowns and how is the underlying trend going here is it better underlying than you would've expected. The same worse any comments you could give on that would be really helpful and and as a follow up just any comments.
Similar question on churn and how Youre seeing that day.
Thank you.
Well I <unk> sure.
And we do many underlying I was trying to think how do we do the underlying on the digital.
And I think I think it's quite difficult to split the impact.
In a very analytical way, but we are pleased with the progression as you said, 26% I think the most notable results starting in the UK, where it is now almost 40%.
And with the iPhone <unk> launch, where we have been very successful and the U K and recently, we have seen and 55% of those sales happening on line, which is an absolute absolute record clearly for your point part of the is driven by the lockdown, but if you look at the UK performance.
We have sold 33% more iPhone as well this year that when the latest iPhone launch a year ago. Despite the lockdown and therefore, it's not just gain of share on line, but is also gain of <unk>.
Absolutely we see this as continuing we mentioned that when Covid stopped and we immediately shut down and we told the markets to ensure that we have plans in place to make sure that the benefits of Covid and the changes of customers' behavior would become locked in in our own plants and this is.
What we are progressing toward at the moment clearly we benefit in terms of efficiency and I talked about the fact that we were seeing the opportunity now to see commission in our P&L to stabilize and then start decreasing over time and this is a key.
Element in that and driving this.
You said price hasnt seen at retail I kind of fundamental shift and how consumers behave.
And their products elsewhere in other and other diseases caused it hasnt shifted more and.
And so okay.
Well I mean I.
I would say.
Retail has not been as aggressively impacted the second and sell them through.
And.
And I would say that people still need to interact with retail for different activities. I think if you look at what we're trying to do we're trying to drive a standardized my Vodafone App.
So so capturing all of the important customer journeys from the service experience perspective, if we can capture everything you need and you can execute through the App that is great and we also want to have click and collect into retail.
And we all find and so the U K as an example, 230 stores are available and open for click and collect and I think youre going to see us play more into that.
Strategy moving forward more click and collect more express smaller formats with very specific purposes.
And we talked about Oh, I want to say 18 months 12 months ago about Reformatting average retailer state.
And making it complementary towards digital first execution, so rather than saying, we're retail first and we've got digital with signed and and I were digital first and all of our channels and then resell complement for execution and Youll see enough pivot towards that and our current execution.
So whether others are doing and I cant comment, but that's definitely what would we do it.
And the data and you also asked about churn and sales cautions we didn't give you an answer on that.
You have seen the numbers and any particular angle there.
It's just a simple question Lee.
Do you expect that to come down more or are you happy with the underlying trends.
I realize I'm being greedy with a second a follow up question and that's it.
And now I'll, just say very happy with the trends you may remember that when we gave our guidance in may for this year. We said we are not betting on stop sale a reduction of volumes of churn because of Covid and I think in India.
We have seen that this has not really happened in the in our in most markets. So the fact that we continue to see structural churn reduction and 1% down in EMEA year to date is positive and then when you look at it by driver and you can really see wide structural because unlimited as little lecture.
Convergence products and lower churn and Vodafone business, we were talking about the recovery and mobile one of the drivers. There is also lower churn and it is supported by a leading NPS, which has been again the highest in business for a long time. So I think we I will see this.
And continuing as well into next year.
Okay.
Thank you Andrew at this point I would like to hand over to Nick for any closing remarks.
So I just wanted to say thank you very much for taking the time to join us.
I am glad to see so many of you fits and strong and.
And look at returning to growth is a good positive for us and now I have focus as a management team has accelerated and from this point onwards, we talked to many of the reasons why we believe that will happen and the actions, we're taking and we look forward to updating you on our full year results and bye take care and stay.
Right.
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Yeah.
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