Vodafone looks to turnover increase

Vodafone’s year-end results revealed a substantial turnover increase that helped cut the preceding year’s net loss of £16.16 billion to a loss to £9.82 billion.

The group’s turnover rose from £22.85 million to £30.38 and was reflected in pre-tax earnings which increased 40% to £11.22 billion, up from £8 billion. Vodafone’s vital mobile business improved by 38.4%.

Sir Christopher Gent, in his last report as Chief Executive, said: “These results show that Vodafone has again exceeded expectations. In particular, we achieved strong year-on-year growth in operating profit, before goodwill amortisation and exceptional items, adjusted earnings per share, EBITDA and free cash flow.

“Vodafone has an unmatched global footprint and is now combining this strength with a range of services for customers which gives Vodafone a real competitive advantage."

He said that Vodafone was progressively building a "brand ascendancy in mobile".

The group also expects to generate free cash flow somewhat higher than the £5.2 billion in the year just ended.

Julian Horn-Smith, Group Chief Operating Officer, said: “We have produced an excellent operating performance with good customer growth, positive ARPU trends and continued focus on cost management, delivering a strong improvement in both margins and cash flow generation.

“The successful launch of Vodafone live! is the most visible manifestation of our strategy to drive revenue through the take up of service offerings unique to Vodafone. We have laid the foundation for further profitable growth and success in the years.”

Vodafone did not, as was expected, write down its 3G assets. The falling value of the 3G licences has been a major contributor to the poor performance of mobile operators in the last three years.

After six years at the helm, Sir Christopher Gent is to be replaced as Vodafone Chief Executive by Arun Sarin in July this year.

(SP)