& 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  | 
  • Threaded  |  Newest First  |  Oldest First        ADD A COMMENT
    From The Founder
    Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Custom TV
    VeEX at ANGA COM

    6|27|17   |     |   (0) comments


    At ANGA COM 2017, Cyrille Morelle, president and CEO of VeEX, updates Alan Breznick with VeEX's new products and technology. This includes VeSion cloud-based platform for network monitoring, AT2500-3G advanced spectrum analyzer and MTTplus-900 WiFi Air Expert module. He also comments on DOCSIS 3.1 deployment and Remote PHY technology.
    LRTV Custom TV
    The Overall Objective Is to Win the Game

    6|26|17   |     |   (0) comments


    SCTE•ISBE's Chris Bastian discusses Energy 2020's success to date and the importance of a flexible approach that allows for changes in specific strategies in order to reach significant milestones.
    LRTV Interviews
    CenturyLink: Let's Get Past SD-WAN Hype

    6|23|17   |   04:02   |   (0) comments


    Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
    Women in Comms Introduction Videos
    Infinera's Sales Director Paints Tech's Big Picture

    6|21|17   |   4:14   |   (1) comment


    Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
    LRTV Custom TV
    SD-WAN Innovation & Trends

    6|20|17   |     |   (0) comments


    Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
    LRTV Interviews
    Ovum's Dario Talmesio on 5G in Europe

    6|20|17   |   02:16   |   (0) comments


    At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
    LRTV Custom TV
    Putting Power on a Pedestal

    6|19|17   |     |   (0) comments


    ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
    LRTV Custom TV
    Gigabit Access: The Last-Mile Pipe for All Future Services

    6|19|17   |     |   (0) comments


    A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
    LRTV Custom TV
    Key Factors to Successfully Deploy an SD-WAN Service

    6|19|17   |     |   (0) comments


    As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
    LRTV Custom TV
    IoT Solutions: Rational Exuberance

    6|19|17   |     |   (0) comments


    IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
    LRTV Custom TV
    Realizing ICN as a Network Slice for Mobile Data Distribution

    6|19|17   |     |   (1) comment


    Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
    LRTV Interviews
    Ovum's Mike Roberts on 5G Uptake

    6|19|17   |   04:08   |   (0) comments


    Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
    Upcoming Live Events
    October 18, 2017, Colorado Convention Center - Denver, CO
    November 1, 2017, The Montcalm Marble Arch
    November 1, 2017, The Montcalm Marble Arch
    November 2, 2017, 8 Northumberland Avenue, London, UK
    November 30, 2017, The Westin Times Square
    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
    No Imagination: UK Chip Biz Goes Up for Sale
    Iain Morris, News Editor, 6/22/2017
    Does AT&T Deserve Time Warner?
    Mari Silbey, Senior Editor, Cable/Video, 6/23/2017
    Netflix's Lesson in Culture Expectation Settings
    Sarah Thomas, Director, Women in Comms, 6/21/2017
    Kalanick Steps Down as Uber CEO
    Sarah Thomas, Director, Women in Comms, 6/21/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
    One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
    Animals with Phones
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.