Vodafone Raises Fiscal Year 2020 Earnings Guidance on Liberty Global Gains
November 12 2019 - 3:00AM
Dow Jones News
By Adria Calatayud
Vodafone Group PLC (VOD.LN) on Tuesday raised its adjusted
earnings guidance for fiscal 2020, benefiting from its acquisition
of certain Liberty Global PLC (LBTYB) assets in Europe and the sale
of its New Zealand operations.
The British telecommunications company upgraded its earnings
outlook as it said that lower cash flows from India and the New
Zealand sale will lead to slightly lower-than-previously-expected
cash flow and posted a narrowed pretax loss for the first half.
Vodafone said it now expects adjusted earnings before interest,
taxes, depreciation and amortization--the company's preferred
profit metric, which strips out exceptional and other one-off
items--of between 14.8 billion and 15.0 billion euros ($16.32
billion and $16.54 billion) for the year ending March 31, 2020. The
company had previously guided for adjusted Ebitda of between
EUR13.8 billion and EUR14.2 billion.
This implies organic growth for the full year of between 2% and
3%, Vodafone said.
Pretax loss for the six months to Sept. 30 was EUR511 million
compared with a loss of EUR2.89 billion for the year-earlier
period, the British telecommunications group said. In the first
half of fiscal 2019, Vodafone booked a large loss on the sale of
Vodafone India.
Revenue for the first half was up 0.4% at EUR21.94 billion, the
company said. Organic service revenue--a figure closely watched by
analysts--was up 0.3% for the first half and up 0.7%for the second
quarter.
Vodafone said adjusted Ebitda was EUR7.11 billion in the first
half of fiscal 2020, up 1.4% on an organic basis benefiting from
cost savings.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
November 12, 2019 02:45 ET (07:45 GMT)
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