Vodafone Group Fiscal Year 2021 Adjusted Ebitda, Cash Flow Guidance Disappoint -- Earnings Review
By Adria Calatayud
Vodafone Group PLC reported results for fiscal 2021 on Tuesday.
Here is what you need to know:
REVENUE: The U.K. telecommunications group generated revenue for
the year to March 31 of 43.81 billion euros ($53.23 billion), down
2.6% on year. This was ahead of expectations of EUR43.64 billion,
according to a consensus provided by the company and based on
estimates by 16 analysts.
ADJUSTED EBITDA: Vodafone's adjusted earnings before interest,
taxes, depreciation and amortization--the company's preferred
metric, which strips out exceptional and other one-off items--for
fiscal 2021 declined 3.3% to EUR14.39 billion. This fell short of
analysts' expectations of EUR14.54 billion, according to a
WHAT WE WATCHED:
-OUTLOOK: Vodafone said it expects adjusted Ebitda for fiscal
2022 to be between EUR15.0 billion and EUR15.4 billion, with an
adjusted free cash flow of at least EUR5.2 billion. While the mid
point of company's adjusted Ebitda guidance range is broadly in
line with consensus expectations of EUR15.22 billion, analysts
anticipated a free cash flow before spectrum costs of EUR5.44
billion for this year.
Over the medium term, Vodafone said it is targeting revenue
growth in both Europe and Africa and mid-single digit growth in
both adjusted Ebitda and adjusted free cash flow. The company also
committed to a minimum annual dividend of 9 European cents a
-COVID-19 IMPACT: The company said it took a hit from the effect
of the coronavirus pandemic on revenue from roaming and visitors.
As a result of the conditions related to Covid-19, Vodafone
accelerated cost-saving initiatives which led to a EUR500 million
net reduction in expenditure from European operations, it said.
-NET DEBT: Vodafone ended fiscal 2021 with net debt of EUR40.54
billion, down from EUR42.05 billion a year earlier and ahead of
consensus expectations of EUR42.97 billion. The company said free
cash flow and net proceeds from the initial public offering of its
European infrastructure company, Vantage Towers AG, contributed to
the reduction in net debt.
Write to Adria Calatayud at email@example.com
(END) Dow Jones Newswires
May 18, 2021 05:50 ET (09:50 GMT)
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