Tuesday, May 18, 2010

Vodafone - More than one-third of revenues now come from mobile and fixed broadband, growth comes from emerging markets

[telegraph] Vittorio Colao, chief executive, said Vodafone is now collecting more than a third of its revenue from mobile data and fixed-line broadband.

"Vodafone’s financial results exceeded our upgraded guidance on all measures. We are creating a stronger Vodafone, which is positioned to return to revenue growth during the 2011 financial year, as economic recovery should benefit our key markets," he said.

The world’s largest mobile phone company reported full-year pre-tax profits of £8.7bn, compared to £4.2bn a year earlier, when the company was hit by £5.9bn of impairment charges.

The rise was largely due to the strong performance of the group’s operations in emerging markets.

However, Vodafone was knocked by a £2.3bn impairment charge in India where it is embroiled in an “intense” price war. The operator is also facing a much larger than expected bill for the latest mobile licenses in the country. The auction price of third generation, or 3G, licenses has increased to $3.4bn, far more than analyst expected.

Vodafone said it had achieved its £1bn cost-saving programme a year ahead of schedule, and will begin a new two-year £1bn saving programme.

The company increased its final dividend by 9pc to 5.65p, taking the full-year payment to 8.31p, a rise of 7pc. It said that it would target a dividend per share growth of 7pc a year for the next three years.

Jonathan Groocock, an analyst at Investec, said: “Vodafone has reported a decent set of full-year results with positive outlook yielding clear dividend returns to shareholders.”

Smartphones double Vodafone's profits

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