Dutch mobile operator Vodafone Libertel has reported a 63% rise in profits over the previous year. The main driver of the increase has been the company’s successful attainment of contract customers.
The company’s net income for the year was $128 million, with an increase in sales of 14%. Vodafone Libertel’s strategy was to encourage customers to sign longer-term contracts and increasing ARPU.
This sort of approach was particularly successful in the Netherlands, since mobile phone penetration is reaching saturation level. New customer acquisition is not a particular area of growth, so by encouraging prepay customers to switch to contracts, the company managed to raise profits.