Vodafone Tops Expectations

Vodafone toped forecasts with a 26% rise in its income, although it reported a net loss of US$14.7 billion following the write down of the value of its overseas assets. Earnings before interest, tax, depreciation and amortization, including proportionate contributions from subsidiaries not fully owned, rose to US$20.8 billion .

Sir Christopher Gent, Chief Executive, commented "These results show that Vodafone has again exceeded expectations. In particular, we achieved strong year-on-year growth in operating profit, before goodwill amortisation and exceptional items, adjusted earnings per share, EBITDA and free cash flow. Today Vodafone has an unmatched global footprint and is now combining this strength with a range of services for customers which gives Vodafone a real competitive advantage. We are progressively building a brand ascendancy in mobile which is gaining recognition both within our industry and in the world at large. The continuing improvement in performance enables Vodafone to build new services for the future for our customers while continuing to grow returns for our shareholders."

Vodafone reported sustained improvement in ARPU in many key markets in Europe, driven by increased usage of both voice and data services, combined with better than expected ARPU levels in Japan. Continued strong progress in data, with revenues from data services increasing by 73% and representing 14.6% of service revenues for the year ended 31 March 2003 and 15.6% of service revenues for the month of March 2003. Data service revenues expected to exceed 20% of mobile service revenues in 2004.

The company ended the year with a worldwide customer base of 119.7 million proportionate registered customers, representing growth of 18.6 million or 18.4% since 31 March 2002, including 10.7 million organic net additions. Venture registered customer base of 296 million.

In the coming year, the Group expects to achieve growth of over 10% in average proportionate customers with a similar growth in proportionate revenues. In addition, a forecast small improvement in EBITDA margins should generate better proportionate EBITDA growth than revenue growth."

Posted to the site on 28th May 2003