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
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
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
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.”
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.
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.