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Vodafone revenues down 3.6% on weak Europe, forex effects
2014-02-06 08:45:00| Telecompaper Headlines
(Telecompaper) Vodafone Group reported revenues for its fiscal third quarter to December down 3.6 percent from a year earlier to GBP 10.98 billion. On an organic basis, excluding forex effects and acquisitions, revenues were down 4.3 percent, and service revenues fell 4.8 percent to GBP 9.86 billion. The mobile operator continued to suffer from the weak economic climate in Europe, with organic service revenue falling 5.1 percent in the UK, 7.9 percent in Germany, 14.1 percent in Spain and 16.6 percent in Italy. Its emerging markets in Africa and Asia did better, growing revenues 5.5 percent on an organic basis. However, due to negative forex effects, reported revenues there were down 6.1 percent to GBP 3.22 billion. The company started already on its plans for increased investment, with capital expenditure up 20.7 percent year-on-year to GBP 1.81 billion. Free cash flow fell 14.2 percent as a result to GBP 1.03 billion. With the increased investment and growing demand for 4G services, which are now available in 13 of the company's markets, Vodafone said it's confident it can restore revenue growth. The company confirmed its guidance for the full year to March, for adjusted operating profit around GBP 5.0 billion and free cash flow GBP 4.5-5.0 billion. This excldues its 45 percent stake in Verizon Wireless, the sale of which should be completed later this month.
Tags: europe
effects
weak
revenues
Category:Telecommunications
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