H1 Group organic service revenue growth -0.4%; N. Europe +1.5%, S. Europe -9.8%, AMAP +5.2%
Q2 Group organic service revenue growth -1.4%; N. Europe +0.7%, S. Europe -11.3%, AMAP +4.1%
H1 EBITDA down -2.9%* to £6.6 billion; EBITDA margin down 1.0 percentage point
Adjusted operating profit £6.2 billion, up 8.5%; expected to be in the upper half of the guidance range
for the full year
Impairments totalling £5.9 billion for Spain and Italy as a result of challenging market conditions and
changes to discount rates
Free cash flow £2.2 billion; expected to be in the lower half of the guidance range for the full year
Interim dividend per share of 3.27 pence, up 7.2%
£2.4 billion dividend due from Verizon Wireless by the end of 2012; £1.5 billion buyback to commence
after receipt
Continued strong growth in data +13.7% and emerging markets (India +11.0%, Vodacom +4.6%,
Turkey +18.0%) in Q2
Smartphone penetration in Europe now 30.7%, with 45.5% of European mobile service revenue now
in-bundle; new tariff plans launched across major European markets since September
Enterprise revenue declined -0.4%; continued strong growth in Vodafone Global Enterprise, M2M and
Vodafone One Net offset by macroeconomic challenges in country-level enterprise units
Continued execution of efficiency programme, with £300 million absolute reduction in European opex
targeted in the 2014 financial year
Vittorio Colao, Group Chief Executive, commented: “We have continued to make progress on our strategic priorities over the last six months, with good growth
in data and emerging markets in particular. In the short-term, however, our results reflect tougher market
conditions, mainly in Southern Europe.
“We remain very positive about the longer-term opportunities, and our Vodafone 2015 strategy reflects
our confidence in the future. This is based on a new strategic approach to our consumer offer and pricing
in Europe now being rolled out, an increasing focus on unified communications in enterprise, and an
attractive and growing exposure to emerging markets. Fundamental to the success of this strategy will be
an ongoing enhancement of the consumer and enterprise customer experience through continuous
investment in high speed data networks, and an increased drive towards standardisation and simplification
across the Group to maximise cost efficiency and accelerate execution.”
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