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Vodafone H1 profit increased to 1.58 billion euros

Staff Writer |
Vodafone Group reported that its first-half profit from continuing operations increased to 1.58 billion euros from 278 million euros, previous year.

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Earnings per share from continuing operations in euro cents were 5.25 compared to 0.54. Oerating profit rose to 2.0 billion euros, compared to 1.5 billion euros in the prior period, primarily reflecting higher adjusted EBIT.

First-half Group adjusted EBITDA increased 4.2% to 7.4 billion euros, with organic growth in Europe and AMAP partly offset by foreign exchange movements and the deconsolidation of Vodafone Netherlands.

Organic adjusted EBITDA grew 13.0%. Excluding the negative impact of net roaming declines in Europe and the benefits in the UK from the introduction of handset financing and regulatory settlements in the period, organic adjusted EBITDA grew 9.3%.

Adjusted basic earnings per share, which excludes the results of Vodafone India which are now included in discontinued operations, were 6.32 eurocents, an increase of 54.9% year-on-year.

First-half Group revenue decreased 4.1% to 23.1 billion euros and service revenue decreased 5.6% to 20.6 billion euros. Organic service revenue were up 1.7%.

The company said its first-half revenue declined 4.1% primarily due to the deconsolidation of Vodafone Netherlands following the creation of the joint-venture VodafoneZiggo, and foreign exchange movements.

Looking forward, the company increased 2018 full-year guidance for organic adjusted EBITDA growth to around 10% (previously 4-8%), implying a range of 14.75-14.95 billion euros at guidance FX rates; FCF pre-spectrum to exceed 5 billion euros (previously guided to be around 5 billion euros).

The company said the improvement to the outlook primarily reflects stronger than expected underlying European revenue growth and a later than anticipated commercial launch by the new entrant in Italy.

The Board recommended an interim dividend per share of 4.84 eurocents, up 2.1% year-on-year, consistent with the Board's intention to grow the full year dividend per share annually.

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