Vodafone Cuts Fiscal Year Net Loss, Emerging Mkts Strong"
LONDON -(Dow Jones)- Vodafone Group, Tuesday narrowed its net loss for the fiscal year, and said that it is on track to achieve strong growth in emerging markets following recent acquisitions.
The Newbury, England-based mobile phone operator narrowed its loss attributable to equity shareholders to GBP6.2 billion in the 12 months to March 31, from GBP19.6 billion the previous year, helped by cost cutting in Europe and strong growth in emerging markets, such as Turkey, Africa and Eastern Europe.
Mobile revenues increase 6.3% organically, taking its proportionate customer base - taking into account customers in joint-ventures - to over 206 million.
Total revenues increased 6% to GBP31.1 billion from GBP29.35 billion, while the company narrowed its operating loss to GBP1.56 billion from GBP14.08 billion. Total dividends per share increased by 11.4% to 6.76 pence.
At 0703 GMT, Vodafone's shares were up 5.1 pence, or 3.2%, at 156.3 pence.
Seymour Pierce analyst Jim McCafferty said the 6.76p dividend was particularly impressive, showing an 11.4% annual increase.
"There are few stocks in the FTSE 100 (apart from BT) which offer such attractive dividend growth coupled with a high yield," the analyst said, maintaining an outperform rating on the stock.
Chief Executive Arun Sarin said in a statement that the company had made good progress on its cost cutting and growth stimulation strategy. He said overall growth prospects for the group remain strong - despite expectations that the European market will remain challenging in the current year - following its $10.9 billion acquisition of a controlling stake in Indian operator Hutchison Essar.
"The last year has also seen a further reshaping of Vodafone's portfolio, with our acquisitions in Turkey and India further increasing the group's exposure to the exciting growth opportunities in emerging markets. We are well placed to continue delivering on our strategy," the CEO said.
In the press statement, Vodafone also guided for its current fiscal year, saying is forecasts group revenues to be in the range of GBP33.3 billion to GBP34.1 billion, with adjusted operating profit in the range of GBP9.3 billion to GBP9.8 billion.
Seymour Pierce's McCafferty said the results modestly beat Seymour Pierce's forecasts, while guidance for 2008 appears to be in line with expectations.
However, Morten Singleton, an analyst at WestLB said he might have to downgrade his forecasts after seeing the guidance.
Company Web site: http://www.vodafone.com
-By Daniel Thomas, Dow Jones Newswires; 44-20-7842-9264; dan.thomas@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 29th May 2007
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