Vodafone Iceland reports five-fold increase in profits in 1Q14

30 May 2014

Vodafone Iceland (Fjarskipti) has announced its financial results for the first quarter ended 31 March 2014, reporting a 3% increase year-on-year in revenues to ISK3.173 billion (USD28.06 million), up from ISK3.066 billion in 1Q13. The operator’s net profit amounted to ISK135 million, a substantial 463% improvement on the ISK24 million reported in the corresponding quarter of 2013. In the period under review, Vodafone Iceland’s EBITDA also increased, by 18% y-o-y to ISK635 million.

CEO Omar Svavarsson commented: ‘Several important projects have been successful so far this year. Vodafone has for instance taken the lead in 4G development and has strengthened its position significantly in a cost effective manner … For some time, it has been clear that the traditional metrics of mobile services were obsolete and public cell phone use was changing dramatically. Changes that occurred in the termination rates also had a positive impact on the business as costs decreased more than revenues and contributed to increased gross profit. The latest change in termination rates is the last in a process that has lasted for several years, but is now finally complete.’

Iceland, Vodafone Iceland (Syn)