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Vodafone forecasts further drop in EBITDA this year
2014-05-20 08:43:00| Telecompaper Headlines
(Telecompaper) Vodafone Group forecast a further drop in EBITDA this year fiscal year, as the difficult market conditions in Europe continue and negative currency effects weigh on results. The company expects a result of GBP 11.4-11.9 billion in the year to March 2015, down from GBP 12.8 billion last year. The acceleration of capital expenditure under Project Spring will also put pressure on free cash flow, but Vodafone said it expects cash flow to remain positive, before any acquisitions or spectrum and restructuring costs. The company also targets a further increase in the dividend. For the past fiscal year, Vodafone reported revenues down 0.8 percent to GBP 38.3 billion, and a profit of GBP 59.4 billion, including a GBP 45.0 billion gain from the sale of its stake in Verizon Wireless, GBP 6.6 billion in impairment charges and GBP 19.3 billion in deferred tax. On an adjusted basis, excluding Verizon, the company posted operating profit of GBP 4.9 billion, just under its target of GBP 5.0 billion, and free cash flow was down 24 percent to GBP 4.2 billion.
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Category:Telecommunications