Monday, May 18, 2009

Vodafone Reaches 303 Million Users, Accelerates Cost Reduction Measures

Vodafone Group reported Q1 2009 revenue of £41.0 billion, up 15.6% over the same period last year (pro forma up 1.3% excluding foreign exchange), and an impairment charge of £5.9 billion. The basic earnings per share 5.84 pence after impairment charges.

Some highlights from the quarterly report:

  • Europe revenue was up 13.6%; outgoing voice usage was up 9.4%

  • Africa and Central Europe revenue growth was 11.2%

  • Asia Pacific and Middle East revenue growth was 32.3%, driven by India

  • Group data revenue was up 43.7% to £3.0 billion

  • Verizon Wireless profit was up 44.7%; The Alltel acquisition creates largest US wireless operator

  • £1 billion cost reduction programme is being accelerated; over 65% of reductions are expected to be achieved in the 2010 financial year

  • Vodafone's proportionate mobile customer base was 303 million on 31-March-2009.

"These results demonstrate the impact of the early actions we took to address the current economic conditions and highlight the benefits of our geographic diversity. The business continues to generate cash strongly and we have made good progress in implementing the strategy announced in November. Data revenue grew to £3 billion for the year and our broadband and enterprise businesses continue to perform well. Our £1 billion cost reduction programme is ahead of plan and we continue to explore further ways to reduce cost. We maintain our tight focus on capital discipline and returns to shareholders," stated Vittorio Colao, Chief Executive.