Light Reading
Group revenue down 1.9% to GB pound 43.6 billion; full-year organic service revenue decline 4.3%.

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  | 
  • Oldest First  |  Newest First  |  Threaded View
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Interviews
    Liberty Global Sees Business Goldmine

    12|18|14   |     |   (0) comments


    Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
    LRTV Documentaries
    EE: The Road to 5G

    12|16|14   |   16:02   |   (1) comment


    Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
    LRTV Huawei Video Resource Center
    Highlights of Huawei's NFV Open Cloud Forum 2014

    12|16|14   |     |   (0) comments


    Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
    LRTV Custom TV
    Realizing Operators' Digital Vision

    12|16|14   |   5:23   |   (0) comments


    Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
    LRTV Documentaries
    US Cellular Injects Analytics Into LTE

    12|16|14   |   2:57   |   (1) comment


    US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
    LRTV Interviews
    How Cox Biz Plans to Keep Growing

    12|15|14   |     |   (2) comments


    Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
    LRTV Huawei Video Resource Center
    Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

    12|15|14   |   2:50   |   (0) comments


    Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
    LRTV Huawei Video Resource Center
    Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

    12|15|14   |   3:43   |   (0) comments


    Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
    LRTV Interviews
    How Cable Biz Services Hit $10B Mark

    12|12|14   |     |   (1) comment


    Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
    LRTV Documentaries
    Mediacom Aims to Test Connected Tractors

    12|11|14   |   05:07   |   (3) comments


    Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
    LRTV Interviews
    TWC Business Looks Beyond $3B

    12|10|14   |     |   (0) comments


    TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
    LRTV Documentaries
    AT&T's New Security Strategy

    12|10|14   |   02:36   |   (1) comment


    AT&T's Chief Security Officer Ed Amoroso explains how his company is wrapping virtual security layers around micro network domains.
    Upcoming Live Events
    February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
    March 17, 2015, The Cable Center, Denver, CO
    April 14, 2015, The Westin Times Square, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Hot Topics
    Vodafone to Ride T-Mobile Back Into US
    Dan Jones, Mobile Editor, 12/12/2014
    1-Gig: Coming to a Small Town Near You
    Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
    T-Mobile, BlackBerry Flirt With Reuniting
    Sarah Reedy, Senior Editor, 12/17/2014
    Gardner's Departure a Cautionary Tale
    Carol Wilson, Editor-at-large, 12/12/2014
    T-Mobile Lights Up 27 Wideband LTE Cities
    Sarah Reedy, Senior Editor, 12/15/2014
    Like Us on Facebook
    Twitter Feed
    Upcoming Webinars
    Webinar Archive