UK-based telecoms giant Vodafone Group has published its financial results for the first half of its current fiscal year ended 30 September 2021, reporting a 5.0% year-on-year increase in turnover to EUR22.489 billion (USD30.2 billion). The carrier attributed the increase to service revenue growth in Europe and Africa, a recovery in handset sales following COVID-19 disruption in the prior year, and favourable foreign exchange movements. Meanwhile, for the six months ended 30 September 2021 Vodafone Group recorded group service revenue totalling EUR19.010 billion, up from EUR18.418 billion in the corresponding period a year earlier.
In terms of other key financial metrics, consolidated Adjusted EBITDAaL was up by 6.5% in organic terms, reaching EUR7.565 billion, mainly due to revenue growth and a legal settlement in Italy. Operating profit decreased by 21.9% y-o-y, however, reflecting a EUR1.0 billion gain in the prior year period related to the merger of Vodafone Hutchison Australia into TPG Telecom Limited. Excluding that, operating profit reportedly increased, ‘reflecting higher Adjusted EBITDAaL and lower depreciation and amortisation, partly offset by a lower share of profits from associates and joint ventures’. In the six-month period under review, the group reported a profit of EUR1.277 billion, representing a 13% annualised drop, attributable to lower operating profit which more than offset lower financing costs and a net income tax credit.
Turning to operational highlights, Vodafone Group’s mobile subscription base stood att 277.776 million as of 30 September 2021, up from 265.256 million a year earlier, while the number of fixed broadband subscriptions across all of its subsidiaries rose to 24.679 million (Sep-20: 24.102 million).
Commenting on the company’s performance, Vodafone Group CEO Nick Read said: ‘The results show we have demonstrated good sustainable growth and solid commercial momentum. Our strengthened performance in Africa and Europe puts us on track to be at the top end of our guidance for this year, as well as firmly within our medium-term financial ambitions. We know there is more to do and our focus remains on driving growth. We are structured for value creation, with operational priorities and portfolio actions which are designed to improve returns at pace.’