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Tuesday, May 21, 2013

Vodafone annual results show a drop in revenue and profit

Vodafone has announced its results for the financial year that ended on 31st March 2013. Revenue for the group was down 4.2% to £44.4 billion, while a drop in the value of the company’s Italian and Spanish businesses meant profits fell from over £7 billion last year to £673 million.

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One of the highlights was the performance of Verizon Wireless, in which Vodafone holds a 45% share. Vodafone’s share of the American company’s profits was £6.4 billion.

Overall, revenue from data services grew but voice and messaging declined.

Vittorio Colao, Vodafone Group Chief Executive, said “Thanks to further strong progress this year in our key areas of strategic focus − data, enterprise and emerging markets − and an excellent performance from VZW, we have achieved good growth in adjusted operating profit and adjusted earnings per share. However, we have faced headwinds from a combination of continued tough economic conditions, particularly in Southern Europe, and an adverse European regulatory environment.”

A Verizon Wireless dividend of £2.1 billion, which was announced earlier this month and is due to be received by Vodafone in June, will be retained in the business. There’d previously been speculation that shareholders might receive some of this cash.

[Presentation (pdf)]

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