Vodafone reports fiscal 3Q results, revises full year guidance

3 Feb 2009

Vodafone, the UK-based mobile group, has revealed a year-on-year increase in revenue to GBP10.47 billion (USD14.97 billion) for its third fiscal quarter ended 31 December 2008, citing a boost in exchange rates as a key factor in the rise. However it reported that quarterly revenue had fallen 1% on an organic basis. Organic revenue from the group’s European subsidiaries fell 1.4%, and while results had stabilised in the UK, and had been solid in Germany and Italy, the company’s Spanish arm saw a decline of 5.8% in organic revenue, faster than the previous quarter. Group-wide, revenue from data services increased 25.3% year-on-year to GBP786 million, and accounted for 8.13% of total revenue, up from 6.44% a year earlier.

Additionally, having announced a cost-saving programme in November 2008, Vodafone claimed it had made good progress with the plans and revealed that it expected to have saved approximately GBP500 million by the end of the 2010 financial year, rising to GBP1 billion by 2011. As a result of foreign exchange movement the group has revised its full year guidance, increasing its revenue target to GBP40.6-41.5 billion, whilst adjusted operating profit is expected to be between GBP11.5 billion and GBP12 billion.

The group reported a rise of 9.5 million in its total mobile customer base to 289 million at the end of December 2008. It recorded record customer growth at its Indian subsidiary, Vodafone Essar, adding 6.3 million subscribers over the quarter, bringing its total to just over 60 million.

United Kingdom, Vodafone Group