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
    Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
    LRTV Documentaries
    A Cultural Shift for an OTT World

    9|26|14   |   01:41   |   (3) comments


    Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
    LRTV Documentaries
    New Skills Needed as Telecom, IT Collide

    9|26|14   |   4:07   |   (1) comment


    As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
    UBB Forum News
    Do IP Networks Need An Overhaul?

    9|25|14   |   02:01   |   (0) comments


    As traffic levels ramp, do IP networks need new technologies and topologies?
    LRTV Documentaries
    Sprint Wields Its Influence in the Valley

    9|25|14   |   3:09   |   (11) comments


    Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
    LRTV Documentaries
    SDN, NFV & The Future of XO's Network

    9|25|14   |   3:47   |   (1) comment


    XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
    UBB Forum News
    The OTT Conundrum

    9|24|14   |   01:39   |   (0) comments


    What is holding back prosperous partnerships between telcos and the OTT players?
    LRTV Documentaries
    Putting Broadband to Work

    9|24|14   |   01:26   |   (0) comments


    High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
    Light Reedy
    Light Reading's Women in Telecom Recap

    9|24|14   |   0:55   |   (4) comments


    Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
    UBB Forum News
    Monetizing Ultra-Broadband

    9|24|14   |   01:43   |   (2) comments


    Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
    LRTV Huawei Video Resource Center
    Sales Director of INIT on Plug & Play Switch Devices

    9|19|14   |   3:21   |   (0) comments


    INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
    LRTV Huawei Video Resource Center
    Saudi Arabia Upgrades Vocational Training System

    9|19|14   |   3:31   |   (0) comments


    The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
    LRTV Huawei Video Resource Center
    Huawei's Media Solutions Are Here to Stay

    9|19|14   |   4:35   |   (0) comments


    The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
    Upcoming Live Events
    October 29, 2014, New York City
    November 6, 2014, Santa Clara
    November 11, 2014, Atlanta, GA
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 9-10, 2014, Reykjavik, Iceland
    June 9-10, 2015, Chicago, IL
    Infographics
    Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
    Hot Topics
    Facebook Pokes Around LTE Direct
    Sarah Reedy, Senior Editor, 9/25/2014
    Is Redbox Instant Shutting Down?
    Mari Silbey, Independent Technology Editor, 9/30/2014
    Sprint Wields Its Influence in the Valley
    Sarah Reedy, Senior Editor, 9/25/2014
    US Ignite Cultivates Gigabit Apps
    Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
    Like Us on Facebook
    Twitter Feed