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Vodafone announces results for the six months ended 30 September 2017

2017-11-14 17:26:05



Group total revenue down 4.1% to 23.1 billion, primarily due to the deconsolidation of Vodafone Netherlands and FX movements; operating profit up 32.5% to 2.0 billion; profit for the financial period of 1.2 billion

Organic service revenue up 1.7%*; Q2 up 1.3%* (Europe 0.8%*, AMAP 6.2%*)

Organic adjusted EBITDA up 13.0%* to 7.4 billion (9.3%* ex roaming, UK handset financing and regulatory settlements1)

Free cash flow (pre-spectrum) improved to 1.3 billion vs. a 0.1 billion outflow in the prior year. Free cash flow was 0.4 billion vs. a 0.4 billion outflow in the prior year

Raising full-year guidance for organic adjusted EBITDA growth to around 10% (previously 4-8%), implying a range of 14.75-14.95 billion at guidance FX rates; FCF pre-spectrum to exceed 5 billion (previously around 5 billion)

Vodafone India service revenues down 15.8%*, adjusted EBITDA down 39.2%*; merger with Idea Cellular progressing well

Interim dividend per share of 4.84 eurocents, up 2.1%

Six months ended 30 September
Group revenue3 23,075 24,051 (4.1)  
Operating profit4 2,008 1,515 +32.5  
Profit/(loss) for the financial period4 1,235 (5,003) NM  
Basic earnings/(loss) per share4 4.03c (18.38c) NM  
Interim devidend per share 4.84c 4.74c +2.1  
Net debt (32,055) (37,884) (15.4)  
Alternative performance measures5
Group service revenue 20,592 21,811 (5.6) +1.7
Adjusted EBITDA 7,385 7,090 +4.2 +13.0
Adjusted EBIT 2,457 2,050 +19.9 +51.9
Adjusted earnings per share 6.32c 4.08c +54.9  
Free cash flow pre-spectrum (guidance basis) 1,289 (148) NM  
Free cash flow2 415 (428) NM


In the first half of the year we have maintained good commercial momentum. Revenue grew organically in the majority of our markets driven by mobile data and our continued success as Europes fastest growing broadband provider. Enterprise revenues continue to grow, led by our Internet of Things (IoT), Cloud and Fixed services, and for the second year running we achieved an absolute reduction in our operating costs. As a result, we are able to report a strong financial performance, with substantial EBITDA margin expansion and profit growth, and we are raising our financial outlook for the year.

In India competition remains intense. There are however signs of positive developments in the Indian market, with consolidation of smaller operators and recent price increases from the new entrant. We are making good progress in securing regulatory approvals for our merger with Idea Cellular and in monetising our tower assets.

In the second half of the year we will continue to implement our strategic initiatives, including fibre infrastructure expansion in Germany, Portugal and the UK; our entry into the consumer IoT market with the launch of V by Vodafone; and the Digital Vodafoneprogramme designed to enhance our customersexperience, increasing revenues and cost efficiency.

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