Vodafone Raises Full-Year Earnings Guidance
November 10 2015 - 4:30AM
Dow Jones News
LONDON—Vodafone Group PLC on Tuesday signaled the continued
recovery of its key European markets after raising its full-year
earnings guidance despite swinging to a first-half loss on
infrastructure costs.
The U.K.-based telecom giant reported a net loss of £ 1.7
billion ($2.57 billion) for the six months to Sept. 30, compared
with a £ 5.42 billion profit in the same period last year.
Earnings before interest, taxes, depreciation and amortization
fell 1.7% to £ 5.79 billion although beat analysts' forecast of £
5.69 billion. Operating profit before exceptional items—a key
performance metric—fell 6.5% to £ 1.64 billion.
The world's second-largest mobile operator by subscribers after
China Mobile Ltd. said revenue excluding mergers, acquisitions and
currency effects rose 2.8% to £ 20.3 billion, slightly above
consensus forecasts of £ 20.2 billion. Revenue was down 2.3% on a
reported basis.
Second-quarter revenue excluding handset sales, mergers,
acquisitions and currency effects rose 1.2%. This is an improvement
from a 0.8% rise in the previous three months and a 1.5% fall in
the same period a year earlier.
In Europe, revenue on the same basis fell 1%—an improvement on a
decline of 1.5% posted in the previous three months and the fifth
consecutive quarter of improving performance. Vodafone also said
the burden of regulation and macroeconomic pressures are easing in
Europe.
"We expect progress to continue in the second half of the year,"
Chief Executive Vittorio Colao said, as the company raised
guidance.
The Newbury, U.K.-based firm said it now expects full-year
Ebitda of between £ 11.7 billion and £ 12 billion. It previously
guided the bottom end of the range at £ 11.5 billion.
Vodafone also boosted its interim dividend by 2.2% to 3.7 pence
a share.
For years, Vodafone has been stung by its high exposure to
Europe's anemic wireless markets; a region where it generates most
of its sales. Pinched consumer spending, intensive competition and
regulation have combined to curtail the company's performance in
its main geographies of Germany, Spain and Italy, as well as
elsewhere.
Still, this year it has hailed the recovery of its key European
business, backed up by deal-making and network investment to meet
consumer demand for faster-speed mobile Internet data and
media-driven offers.
Write to Simon Zekaria at simon.zekaria@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 10, 2015 04:15 ET (09:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
China Mobile (NYSE:CHL)
Historical Stock Chart
From Mar 2024 to Apr 2024
China Mobile (NYSE:CHL)
Historical Stock Chart
From Apr 2023 to Apr 2024