Vodafone to take GBP28 billion ‘goodwill charge’

27 Feb 2006

Vodafone has announced it will take a goodwill charge of as much as GBP28 billion as a result of ‘intensifying competition’ and pricing pressures. Vodafone claims much of the write down will be attributable to Vodafone Germany following its acquisition of Mannesmann in 2000, but added that there have also been impairments in Italy and, potentially, Japan. Vodafone has lowered its 2006/07 organic revenue growth rate to between 5% and 6.5%, down from earlier predictions of between 6% and 9%.

United Kingdom, Vodafone Group