Strategic KPIs
Strategic KPIs
| Year ended 31 March | ||||
|---|---|---|---|---|
| KPI | Purpose of KPI | 2008 | 2007 | 2006 |
| Group | “Innovate and deliver on our customers’ total communications needs” | |||
| Total communications revenue | Measures the Group’s growth in total communications revenue, a key driver in the growth of the business for the future. Also used in determining management’s remuneration | £4,565m | £3,310m | See note 3 |
| Total communications revenue as a percentage of Group revenue | Measures progress against the Group’s target to increase total communications revenue to 20% of total Group revenue by the 2010 financial year. | 12.9% | 10.6% | See note 3 |
| Data revenue and related organic growth(2) |
Data revenue growth is expected to be a key driver of the future growth of the business. | £2,180m 40.6% |
£1,428m 30.7% |
£1,098m 51.8% |
| Europe | “Revenue stimulation and cost reduction in Europe” | |||
| Revenue and related organic growth(2) | Revenue and revenue growth is an indicator of the success of the revenue stimulation strategy. | £26,081m 2.0% |
£24,592m 1.4% |
£24,733m 5.6% |
| Adjusted operating profit and related organic growth(2) | Measure of profitability and also used to track success in stimulating revenue and reducing costs. | £6,206m (1.5)% |
£6,159m (3.7)% |
£6,425m 5.2% |
| Operating expenses as a percentage of service revenue | Measure of how operating expenses are being controlled and is an indicator of the success of the cost reduction measures within the Europe region. | 23.4% | 23.8% | 22.8% |
| Voice usage (millions of minutes) | Voice usage is an important driver of revenue growth especially in light of continuing price reductions due to the competitive and regulatory environment. | 182,613 | 156,546 | 135,933 |
| Mobile capital intensity(4) | Measures the Group’s performance against its target to reduce European mobile capital expenditure to revenue ratio to 10% for the 2008 financial year. | 9.9% | 11.8% | 12.4% |
| EMAPA | “Deliver strong growth in emerging markets” | |||
| Revenue and related organic growth(2) |
Revenue growth is an indicator of the success of the strategy to deliver growth in emerging markets. | £9,345m 14.5% |
£6,441m 21.1% |
£4,554m 19.4% |
| Adjusted operating profit and related organic growth(2) | Measure of profitability and also used to ensure EMAPA is delivering strong profitable growth. | £3,729m 20.9% |
£3,244m 27.4% |
£2,763m 16.0% |
| Operating expenses as a percentage of service revenue | Measure of how operating expenses are being controlled in an environment of strong growth. | 25.9% | 24.7% | 25.1% |
| Mobile customers and related organic growth | The number of closing mobile customers in the customer base and the related growth is an indicator of the success of the strategy to deliver growth in emerging markets. | 119.1m 21.2% |
61.9m 26.7% |
39.8m 38.3% |
| Notes: | |
|---|---|
| (1) | Definition of the key terms are provided in Definitions of Terms. |
| (2) | See Non-GAAP information for further details on the use of non-GAAP measure to the most comparable GAAP measure. |
| (3) | Measurement of total communications revenue began on 1 April 2006, following the launch of current strategy in May 2006. |
| (4) | KPI includes the results of common functions. For the year ended 31 March 2006, the KPI excludes the impact of Vodafone Sweden which was disposed of in January 2006. |