For the year, the Vodafone group has reported a group operating profit up 15.4% to €4.3bn on revenue down 2.2% to €46.6bn, primarily due to the de-consolidation of Vodafone Netherlands and FX movements, it says.
The report has been posted during advancements in next generation broadband partnerships in Italy and the UK (rolling out fibre to the home with CityFibre), and just after announcing the acquisition of cable assets from Liberty Global in Germany and the CEE region.
“Organic service revenue was up 1.6%, with good momentum in data, fixed/convergence and Enterprise,” said Vodafone.
The final dividend per share is 10.23 cents, up 2%, giving total dividends per share for the year of 15.07 cents.
Vittorio Colao, outgoing group chief executive, said: “This was a year of significant operational and strategic achievement and strong financial performance. Our sustained investment in network quality supported robust commercial momentum - we added a record number of fixed NGN and converged customers in Q4.”
He added that mobile data usage continues to grow “strongly”, and that the company grew both revenues and margins in Enterprise, “despite roaming headwinds” [the end of European roaming charges]. The group continues to reduce operating costs, and the underlying EBITDA grew 7.9%.
Colao said: “We expect to sustain our profit growth in the year ahead, despite the arrival of a new entrant in Italy and competitive pressure in Spain, supported by the third year in a row of lower net operating costs.”
Colao is stepping down in October after ten years at Vodafone’s helm, and is being replaced by current CFO Nick Read, previously head of the UK business and before that the Africa, Asia and Middle East division.
