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Vodafone improves outlook as drop in revenue slows
2014-11-11 08:25:00| Telecompaper Headlines
(Telecompaper) Vodafone has raised its full-year outlook after its second-quarter results showed improving trends. The drop in organic service revenues slowed to 1.5 percent in the three months to September, versus 4.2 percent in the first quarter of the fiscal year. Service revenue in Europe was down 5.0 percent, while the AMAP region improved to 6.8 percent growth. Total revenues for the first half were up 8.9 percent to GBP 20.75 billion, helped by currency effects. EBITDA increased 5.5 percent to GBP 5.88 billion. Adjusted operating profit was still down 29.5 percent to GBP 1.76 billion, and net profit dropped 69.5 percent to GBP 5.50 billion, hurt by a number of one-time charges for restructuring and acquisitions. For the full year to March 2015, Vodafone now targets EBITDA of GBP 11.6-11.9 billion, at the high end of its earlier outlook of GBP 11.4-11.9 billion. Free cash flow is expected to turn positive over the year, after a breakeven result in H1. Capital expenditure nearly doubled in the first half to GBP 3.9 billion as Vodafone's Project Spring investments got well under way. Vodafone expects to spend a total GBP 16 billion in the two years to March 2016. The operator took European 4G coverage to 59 percent at the end of September and now counts 10.5 million 4G customers across the group. This is still just a fraction of its total 438.5 million customers.
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vodafone
Category:Telecommunications