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Annual Results

Vodafone widens FY loss as revenue slips lower

16 May 2017 07:20

Vodafone has dialled in a FY loss of €6.08bn, from a restated loss of €5.1bn a year earlier.

This was achieved on group revenue of €47.6bn, down from €49.8bn. The loss for the year included a net of tax impairment of India of €3.7bn.

Final dividend was 10.03 euro cents a share, up 2.0% and taking the total to 14.77 euro cents, also up 2.0%.

CEO Vittorio Colao said sustained investment in network quality has provided the platform to offer more generous plans to the company's mobile customers in Europe, stabilising contract ARPU, and has allowed us to capture strong data growth in emerging markets operations.

"We continue to be Europe's fastest growing broadband provider, seizing the opportunities created by convergence and winning revenue market share, supported also by our Enterprise business which continues to outperform its peers," said Colao in a statement.

He added that this translated into organic revenue growth, which, combined with a reduction in Vodafone's cost base, had expanded the company's adjusted EBITDA margin, accelerated its adjusted EBITDA growth to 6% and improved its cash generation.

"Additionally, the proposed merger of Vodafone India and Idea Cellular will create a new champion for Digital India, while capturing synergies with an estimated net present value of $10bn," the CEO said.

"We expect to sustain our momentum in the coming financial year, generating free cash flow of around €5.0bn. Our confidence in the outlook is demonstrated by another 2% increase in our dividend."

LOOKING AHEAD

Overall, excluding Vodafone India, the company expected to grow its adjusted EBITDA on an organic basis by 4%-8%, implying a range of €14.0bn-€14.5bn at guidance FX rates.

"This includes the benefit of shareholder recharges received by the Group from VodafoneZiggo and from Vodafone India, which are expected to be broadly stable in the year, as well as an anticipated benefit from the introduction of handset financing in the UK," the company said.

Story provided by StockMarketWire.com

Related Company: VOD

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