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Vodafone to raise investment as revenue fall continues
2013-11-12 08:49:00| Telecompaper Headlines
(Telecompaper) Vodafone announced plans to increase investment in an attempt to turn around the continued fall in revenues in Europe. The mobile operator increased the budget for its Project Spring to GBP 7 billion by March 2016, from 5 billion previously, saying it hopes the investment in networks will help differentiate its services. Revenues for the fiscal first half were up 2.5 percent year-on-year to GBP 19.06 billion, thanks to the acquisitions of CWW and TelstraClear. Profit for the period from continuing operations increased by GBP 20.0 billion to GBP 15.7 billion, primarily due to a tax benefit of GBP 14.7 billion in the current period and an impairment charge of GBP 5.9 billion in the prior period. However, organic service revenues fell 4.2 percent to GBP 20.04 billion. In south Europe, revenues fell 14.9 percent to GBP 4.48 billion, and north and central Europe revenues were down 3.9 percent to GBP 9.47 billion. The Africa, Middle East and Asia operations grew by 5.8 percent to GBP 5.89 billion. Adjusted operating profit fell 8.3 percent to GBP 5.709 billion, already meeting the group's full-year target of around GBP 5 billion. The outlook takes account of the planned sale of Verizon Wireless, expected to be completed in early 2014. Vodafone also maintained its outlook for annual free cash flow of around 4.5-5.0 billion, after GBP 2.02 billion in the first six months of the year. The operator increased its interim dividend by 8 percent to 3.53 pence per share and pledged the same increase in the final dividend.
Tags: fall
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Category:Telecommunications
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