By Simon Zekaria
LONDON-- Vodafone Group PLC on Tuesday hailed signs of
stabilization in its key European telecommunications markets, even
as the mobile telecom giant reported a fall in full-year
profit.
The U.K.-based company said its net profit in the year to March
31 fell to GBP5.76 billion ($9.01 billion) from GBP59.3 billion in
the same period last year. Last year's result was boosted by the
sale of its U.S. wireless operations in a landmark deal worth $130
billion, for which it received a one-off contribution of GBP48.2
billion.
Operating profit adjusted for exceptional items--a key
performance metric--fell 19% to GBP3.51 billion as the company
invested in its network.
It posted earnings before interest, tax, depreciation and
amortization of GBP11.9 billion, up 7.5% year-over-year. It
forecasts Ebitda in the range of GBP11.5 billion to GBP12 billion
in fiscal 2016.
Revenue rose 10.1% year-over-year to GBP42.2 billion. But
revenue excluding handset sales, as well as acquisitions and
disposals, fell 1.6%.
"We have seen increasing signs of stabilization in many of our
European markets, supported by improvements in our commercial
execution and very strong demand for data," said Chief Executive
Vittorio Colao.
Newbury, England-based Vodafone is using a large portion of its
funds to improve network quality and speed across Europe, where
high competition and a squeeze on consumer spending has dragged
down sales for telecom operators.
In its emerging markets, a "good growth trend has continued,"
said Mr. Colao.
Vodafone said it would pay a dividend of 11.2 pence a share, up
2%.
Write to Simon Zekaria at simon.zekaria@wsj.com
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