UK-based Vodafone Group has published its financial results for the year ended 31 March 2022, posting a 4% year-on-year increase in total turnover, driven by service revenue growth in both Europe and Africa, higher equipment revenue and favourable foreign exchange movements. For the twelve-month period, the carrier reported group revenue of EUR45.58 billion (USD47.5 billion), up from EUR43.81 billion in FY21, with group service revenue rising to EUR38.20 billion, up 2.6% y-o-y in organic terms. Meanwhile, adjusted EBITDAaL increased by 5.0% (organic growth) to EUR15.21 billion, fuelled by revenue growth and continued cost transformation programme savings. It also reported a profit of EUR2.62 billion for the financial year under review, a notable improvement from the EUR536 million it recorded in FY21, primarily due to higher adjusted EBITDAaL and lower income tax expense.
Looking ahead, Vodafone Group has said ‘the current macroeconomic climate presents specific challenges, particularly inflation, and is likely to impact our financial performance in [FY23]’. As such, the company has said it expects adjusted EBITDAaL to be between EUR15.0 billion and EUR15.5 billion in FY23, while adjusted free cash flow is forecast at around EUR5.3 billion for the current fiscal year.
With regards to operational indicators, meanwhile, the company reported a group mobile subscription total of 275.248 million as of 31 March 2022, up from 269.790 million a year earlier, of which the largest portion – 108.709 million, up from 107.941 million – were attributable to its European operations. In the fixed broadband sector, it reported a total of 24.785 million subscriptions, up 1.1% from 24.514 million a year earlier, while pay-TV subscriptions declined to 18.205 million (Mar-21: 18.351 million).
Commenting on the company’s performance, Vodafone Group CEO Nick Read said: ‘We delivered a good financial performance in the year with growth in revenues, profits and cash flows, in line with our medium-term financial ambitions … Whilst we are not immune to the macroeconomic challenges in Europe and Africa, we are positioned well to manage them and we expect to deliver a resilient financial performance in the year ahead.’