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Vodafone Group consolidated revenues $28.5 billion

Staff writer |
Vodafone Group reported its financial results for the six months ended Sep 30, 2013. The company reported adjusted earnings per share of 7.85 pence, down 2.6% year over year.

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The company recorded consolidated revenues of 22 billion pounds ($28.5 billion), which was up 1.2% year over year on a reported basis but down 3.2% on an organic basis. Group service revenues (91% of total revenue) increased 0.1% year over year to 20 billion pounds ($26 billion) on a reported basis but decreased 4.2% on an organic basis.

Northern and Central Europe: Revenues increased 5.1% on a reported basis but decreased 3.5% on an organic basis year over year to 10.2 billion pounds ($13.2 billion). The organic decline was due to poor economic conditions in some markets, competitive pressure and the impact of MTR cuts, partially offset by growth of mobile in-bundle revenues.

Service revenues in this segment were up 4.6% year over year on a reported basis but dropped 3.9% on an organic basis to 9.5 billion pounds ($12.3 billion).

Southern Europe: Revenues of 4.9 billion pounds ($6.4 billion) were down 8.6% on a reported basis and 13.5% year over year. Service revenues decreased 10.1% on reported basis and 14.9% on an organic basis year over year to 4.5 billion ($5.8 billion).

The decline was due to reductions in interconnection charges, pricing pressure and macroeconomic weakness that offset the growth in data revenues. Declining revenues across all major markets were also responsible for this slump.

Africa, Middle East & Asia Pacific (AMAP):Revenues from thissegment nudged up 1.2% on a reported basis and 7.0% organically year over year to 6.7 billion pounds ($8.7 billion).

Service revenues dipped 0.5% year over year on a reported basis but grew 5.8% on an organic basis to 5.9 billion ($7.7 billion) driven by customer additions, increased usage, solid pricing and robust performances in Vodacom. This was offset by the negative impact of MTR reductions, regulatory pressure and poor market conditions in certain countries. Country wise, India, Qatar, Ghana and Egypt delivered strong performance offsetting service revenue declines in Australia and New Zealand.

During the six-month period under review, Vodafone's total mobile subscriber base reached 411.5 million (79.8% represented by prepaid). In Europe, the company added 503,000 million subscribers, bringing the region's total customer base to 142 million at the end of Sep 2013. Africa, the Middle East & Asia Pacific added 2 million customers, taking the total subscription to 216 million.

Vodafone Group generated free cash flow of 1.8 billion pounds ($2.3 billion), down 3.9% year over year. Capital expenditure was 2.3 billion pounds ($3 billion), up 14.3% from the corresponding year-ago period.

Vodafone's fiscal 2013 management expects adjusted operating profit of 5 billion pounds and free cash flow in the range of 4.5–5 billion pounds.

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