UK segment revenue fell slightly to £2.71bn from £2.72bn for the comparable six months in 2007, with the year-on-year growth rate slowing as a result of competitive downward pressures on voice and messaging tariffs, a lower roaming price per minute due to new regulation and slower customer base growth.
Data revenue continued to show strong growth, driven by higher penetration of consumer mobile broadband and mobile internet bundles.
Retention costs rose significantly due to the introduction in 2006 of 18-month contracts, resulting in more people requiring contract upgrades this year than in 2007.
The mobile operator said it had 'underperformed recently in the UK but have put in place appropriate actions'.
Vodafone said it would focus on customer value for existing customers, rather than revenue stimulation, and cost efficiency.
'We will shift our approach away from unit pricing and unit based tariffs to propositions that deliver much more value to our customers in return for greater commitment, incremental penetration of the account or more balanced commercial costs. In essence, we are confident that by targeting our offers, we can deliver more value to our customers and have a better financial outcome for Vodafone.'
Vodafone's total group revenue increased by 17.1% to £19.9bn, with organic growth of 0.9%. Europe revenue increased by 14.3% to £14.5bn.
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