Vodafone revenue stays flat as European troubles come to the fore

The company is hoping increased data usage and integrated TV and broadband offerings will help improve its fortunes

Vodafone's revenue remained flat in the fiscal year to March 31, with sales in Europe shrinking in the face of intense competition and challenging economic conditions.

The mobile telecommunications operator reported revenue for its fiscal year of £38.3 billion (US$63.8 billion as of March 31, the last day of the period reported). Net profit shot up to a massive £59.4 billion from £657 million a year earlier. However, the boost was almost entirely due to the sale during the year of Vodafone's 45 percent stake in U.S. operator Verizon Wireless for $130 billion. The company also reported a net profit on its continuing operations of £11.3 billion, which came mostly from tax credits.

The sale of the Verizon Wireless stake leaves Vodafone more dependent on its European holdings, where performance remains poor. Adjusted operating profit (excluding restructuring costs and amortization) fell in every European territory for which Vodafone breaks out results and dropped across the continent to £2.7 billion from £4.2 billion a year earlier.

Vodafone's recipe for improving its fortunes relies on growth prospects in data, emerging markets, unified communications and converged services, it said. In Europe, acquisitions of Germany's largest cable operator, Kabel Deutschland, and of Spanish cable operator Ono will let Vodafone offer mobile and fixed broadband, and TV services.

European smartphone penetration grew by 7 percentage points year on year to 45 percent, and early experience from 4G shows that customers use roughly twice as much data compared to 3G data usage, Vodafone said.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesCarrierstelecommunicationVodafone Groupfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?