Vodafone Group forecasts £11.4b profit end of 2011 fiscal year
Vodafone Group has increased its profit outlook for the 2011 full year on the back of strong growth in emerging markets like India and Turkey.
According to the mobile operator, although the macroeconomic outlook is uncertain, it is confident that it can continue to execute successfully in the second half of the financial year.
“Progress against our strategic and financial objectives in the first half of the financial year has been good. We now expect adjusted operating profit for the full year to be in the range of £11.4 – £11.8 billion, the upper half of the range indicated in May 2011,” said Group CEO Vittorio Colao today November 8, 2011 in a statement.
“We continue to expect free cash flow to be in the range of £6.0 – £6.5 billion, excluding the £2.8 billion dividend due from Verizon Wireless in January 2012,” Colao said.
The UK-based company also announced its 2011 half-year financial report for the six months ended September 30, 2011.
The group’s earnings before interest, taxes, depreciation and amortization (EBITDA) rose 2.3% to £7.53 billion under the six months under review with second quarter organic service revenue growth up 1.3%.
Revenue in its Europe operations declined 1.2% with Africa, Middle East and Asia Pacific (AMAP) revenue up 8.2%.
“H1 EBITDA up 2.3% to £7.5 billion; EBITDA margin 32.0%, down 0.6 percentage points, as expected… Adjusted operating profit £6.0 billion; full year guidance now improved to £11.4 – £11.8 billion – Free cash flow £2.6 billion; full year guidance of £6.0 – £6.5 billion confirmed; Interim dividend 3.05 pence, up 7.0%; special dividend of 4.0 pence to be paid at the same time,” the statement indicated.
“We are gaining share in most of our major markets, through our focus on superior network quality and an improved customer experience…We are achieving sustained growth in the key areas of data, emerging markets and enterprise,” said Colao.
By Ekow Quandzie