ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

Weak Euro Hits Vodafone Profit

Share On Facebook
share on Linkedin
Print

British mobile firm Vodafone Group (LSE:VOD) reported that the mobile phone giant had a “steady” performance for the 12 months ending 31stMarch 2012, affected by a “weaker euro” and “tough macroeconomic and regulatory environment” in Europe.

Revealing its annual performance to the public, Vodafone indicated “impairment charges” amounting to £4 billion for its operations inItaly, Portugal, Spain, Greece – the countries hit the hardest by sovereign debt crisis.

Financial Highlights

Vodafone Group said it was able to either hold or gain share in most of its major markets finishing the year with 1.2% increase in revenue to £46.4 billion.

However, EBITDA fell 1.3% at £14.5 billion, blaming continuing high levels of commercial costs in migrating to smartphones and singling out the “difficult trading environment” in Spain.

Profit was diminished as a result of the loss in revenue from the French mobile phone company SFR, after Vodafone sold its 44% stake for £7.02 billion, and the Polish mobile phone Polkomtel, owned by Vodafone for 24.4% stake and which was sold at $6.5 billion.

On the other hand, Vodafone posted £3.5 billion net gains from the disposal of both assets and the company was able to keep £6.1 billion of cash, after capital expenditures of £6.4 billion, meeting the forecast set by the company.

Most of Vodafone’s net income came from its 45% interest in the US mobile phone company Verizon Wireless, representing 42.2% of the company’s adjusted operating profit. Vodafone received £4.9 billion from its share of profit in Verizon Wireless that enabled the company to provide a special dividend of 4 pence a share, totalling £2 billion.

Outlook

The company views the conditions Europe to “remain very difficult”, citing “weak consumer demand from poor macroeconomic conditions, harsh regulatory backdrop and ongoing competition” will “create material barriers to growth”.

“Our focus on the key growth areas of data, emerging markets and enterprise is positioning us well in a difficult macroeconomic environment,” stated Vodafone’s Group Chief ExecutiveVittorio Colao.

“Our goal over the next three years is to continue to strengthen our technology and commercial platforms through reliable and secure high speed data networks, significantly enhanced customer service across all channels, and improved data pricing models, to enrich customers’ experience and maximise our share of value in the markets in which we operate,” CEO Colao concluded.

Company Spotlight

Vodafone Group is the world’s largest mobile phone company by revenue, operating in more than 30 countries with more than 371 million subscribers.

A member of the London Stock Exchange since 1988, Vodafone is part of the FTSE 100 Index. At the close of trading in London today, shares of the company gained 3.39% to £1.70, following the announcement.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com