Vodafone 1Q results as forecast, but year-end to be at lower end of range

22 Jul 2008

Newbury-based wireless group Vodafone has lowered its outlook for full-year revenue to around the bottom of a previously forecast range, due to weak economies and particular pressures in Spain. Vodafone posted first-quarter revenue in line with forecasts at GBP9.8 billion pounds (USD19.57 billion), showing organic growth of 1.7%. But it said it now expected its full-year revenue to be around the bottom of its previously stated range of GBP39.8 billion to GBP40.7 billion due to recent economic weakness and lower than expected equipment revenue.

Vodafone added 8.5 million subscribers in the three months to 30 June 2008, taking the company’s proportionate customer base to 269 million. At the same date the group claimed 29.85 million 3G customers. ‘Notwithstanding this more challenging operating environment, we continue to benefit from a diversity of assets and services, with strong revenue growth in EMAPA and another good quarter of data revenue growth offsetting weakness in Spain,’ said CEO Arun Sarin. In addition to its wireless assets, Vodafone claimed 3.7 million fixed broadband customers across 13 markets, with Germany accounting for 2.8 million via its Arcor and Vodafone Germany arms

United Kingdom, Vodafone Group