& cplSiteName &

Vodafone Reports Decline in Full-Year Revenues

Light Reading
News Wire Feed
Light Reading
5/20/2014
50%
50%

NEWBURY, UK --

Group revenue down 1.9% to £43.6 billion; full year organic service revenue decline 4.3%

  • Q4 organic service revenue declined 3.8%, or 4.0% including Italy at 100% from 21 February 2014
  • EBITDA down 7.4% at £12.8 billion; organic EBITDA margin down 1.3 percentage points
  • Adjusted operating profit £7.9 billion, including £3.2bn for Verizon Wireless to 2 September 2013
  • Pro forma full year 13/14 guidance met: adjusted operating profit £4.94 billion, free cash flow £4.84 billion
  • Completion of Verizon Wireless disposal, US$85 billion returned to shareholders; £45.0 billion pre-tax gain
  • £19.3 billion deferred tax assets recognised in relation to the Group’s historical tax losses, £17.7 billion of this announced H1
  • Impairments totalling £6.6 billion in Germany, Spain, Portugal, Czech Republic and Romania
  • Planned organic investments of around £19 billion over the next two years, including Project Spring
  • Final dividend per share of 7.47 pence, giving total dividends per share of 11.0 pence, up 8%

    Significant progress on unified communications strategy: acquisition of Kabel Deutschland (‘KDG’), announced acquisition of Ono, ongoing fibre build in Spain and Portugal, with Italy to commence this year

  • Project Spring underway, initially with increased network investment in India and Germany
  • 4.7 million 4G customers in 14 markets; early 4G data usage more than double that of 3G data usage
  • European smartphone penetration 45%, up 7 percentage points year-on-year
  • Mobile in-bundle revenue grew 7.8%* in the year and Q4, and now represents 51% of Q4 Group mobile service revenue, and 61% in Europe
  • Vodafone Red now in 20 markets; 12 million customers as at 31 March 2014
  • M-Pesa now in 10 markets, 17 million customers

    Guidance for the 2015 financial year

  • EBITDA in the range of £11.4 billion to £11.9 billion, principally reflecting the impact of Project Spring investment and foreign exchange movements
  • Positive free cash flow after all capex, before M&A, spectrum and restructuring costs
  • Total capex programme of around £19 billion in the two years to March 2016, with capital intensity subsequently normalising to 13-14% of annual revenue
  • Intention to grow dividends per share

    Vittorio Colao, Group Chief Executive, commented:
    “It has been a year of substantial strategic progress. The sale of our Verizon Wireless stake has rewarded shareholders for their support, and enabled the acceleration of our strategy through the acquisition of KDG, the pending acquisition of Ono and our Project Spring investment programme.

    “Our operational performance has been mixed. The Group’s emerging markets businesses have performed strongly throughout the year: we have executed our strategy well and have successfully positioned ourselves for the rapid growth in data we are now witnessing. In Europe, where we continue to face competitive, regulatory and macroeconomic pressures, we have taken steps to improve our commercial performance, particularly in Germany and Italy, and are beginning to see encouraging early signs.

    “I am confident about the future of the business given the growth prospects in data, emerging markets, enterprise and unified communications. We have commenced our Project Spring two-year investment programme which will accelerate our plans to establish stronger network and service differentiation for our customers. I expect the first signs of this to become evident later this year, with wider 4G coverage in Europe and 3G coverage in emerging markets, improved network performance and increased customer advocacy. While cash flow will be depressed during this investment phase, our intention to continue to grow dividends per share annually demonstrates our confidence in strong future cash flow generation.”

    Vodafone Group plc (NYSE: VOD)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Featured Video
    From The Founder
    Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
    Flash Poll
    Upcoming Live Events
    November 1, 2017, The Royal Garden Hotel
    November 1, 2017, The Montcalm Marble Arch
    November 2, 2017, 8 Northumberland Avenue, London, UK
    November 2, 2017, 8 Northumberland Avenue – London
    November 10, 2017, The Westin Times Square, New York, NY
    November 16, 2017, ExCel Centre, London
    November 30, 2017, The Westin Times Square
    May 14-17, 2018, Austin Convention Center
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    Is US Lurching Back to Monopoly Status?
    Carol Wilson, Editor-at-large, 10/16/2017
    Pai's FCC Raises Alarms at Competitive Carriers
    Carol Wilson, Editor-at-large, 10/16/2017
    Muni Policies Stymie Edge Computing
    Carol Wilson, Editor-at-large, 10/17/2017
    The Big Cable DAA Update
    Mari Silbey, Senior Editor, Cable/Video, 10/11/2017
    'Brutal' Automation & the Looming Workforce Cull
    Iain Morris, News Editor, 10/18/2017
    Animals with Phones
    Live Digital Audio

    Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

    During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

    She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

    Like Us on Facebook
    Twitter Feed