Vodafone set to write-off £6bn ‘slump’

Mobile phone giant Vodafone was today expected to write off up to £6 billion from acquisitions it made during the telecoms boom.

The UK-based group will pay the price for a downturn in the value of telecoms stocks when it reports half-year results.

The non-cash items detracting from Vodafone’s figures will include write-offs from Arcor, the German fixed-line telecoms business which Vodafone acquired as part of its takeover of Mannesmann two years ago.

The value of Vodafone’s 2.2% stake in China Mobile has also fallen sharply.

Further costs of £6.5bn will come from aquisition charges relating to the Mannesmann deal.

Without the one-off accounting adjustments, Vodafone’s underlying profits are likely to be at the upper end of City expectations with a figure in the region of £4.6bn.

Nic Cardani, telecoms analyst at fund manager Gerrard, said Vodafone was still a strongly performing company despite the write-offs.

‘‘It’s not Vodafone’s fault but an industry-wide matter.’’

Analysts will be keen to discover how much the firm has suffered from the economic downturn as companies represent a large chunk of custom.