Earnings: Vodafone FY2006 Revenue Up 6 Percent

Vodafone has reported its annual earnings for the year ending March 31st. The group saw revenue of 31.1 billion pounds (US$61.74 billion), which represented a year-on-year growth of 6 percent, or organic growth of 4.3 percent. The operating loss for 2007 was 1.564 billion pounds (US$3.105 billion), down from a loss of 14.084 billion pounds for 2006. The basic loss per share was 8.94 pence (US$0.1775) while the adjusted basic earnings per share increased by 11.4 percent to 11.26 pence (US$0.2235).

Customer base: Vodafone now has 206 million customers worldwide (representing an addition of 28.2 million customers), of which 15.9 million are 3G users (up from 7.9 million for 2006). Vodafone’s German operations had 3.72 million 3G users, Italy had 3.762 million, Spain had 2.89 million and the UK 1.938 million. There are 32.3 million Vodafone Live active devices worldwide, up from 27.1 million a year ago.

Data revenue: Vodafone Group’s data revenue increased to 1.428 billion pounds (US$2.835 billion) for 2007, a 30 percent increase over the 2006 figure of 1.098 billion pounds. Messaging revenue increased by just under 10 percent to 3.587 billion pounds (US$7.121 billion). The total percentage of revenue coming from non-voice service increased from 17 percent in 2006 to 18.3 percent in 2007. Out of Vodafone’s four main European markets Vodafone Germany had the highest proportion of revenue from data at 8.0 percent, followed by the UK on 6.3 percent, Spain on 6.1 percent and Italy on 4.6 percent. Spain had the highest ARPU at 35.2 euros (US$47.54), followed by Italy at 25.9 euros (US$34.98), UK at 23.6 euros (US$31.87) and Germany at 23.3 euros (US$31.47).

For EMAPA (Eastern Europe, Middle East, Africa, Pacific and Asia) data revenue came in at 2.4 percent of total service revenue of 5.969 billion pounds ($11.85 billion), and messaging claimed 11.2 percent of revenue.

Predictions: Vodafone predicted group revenue for the year ahead to be between 33.3-34.1 billion pounds (US$66.1-67.7 billion) with adjusted operating profit in the range of 9.3-9.8 billion pounds (US$18.5-19.5 billion).

India: Vodafone has paid US$10.9 billion (5.5 billion pounds) in cash to Hutchison, reflecting retention and closing adjustments agreed between Vodafone and Hutchison. Along with the acquisition of Hutchison’s part of Hutchison Essar, Vodafone sold its 5.6 percent direct shareholding in Bharti Airtel to a Bharti group company. On 9 May 2007, the Bharti group company irrevocably agreed to purchase this shareholding and the Group expects to receive $1.6 billion in cash consideration for such shareholding by November 2008.

Earnings Release PDF

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