Vodafone beats guidance after revenue trends improve

Mobile phone giant Vodafone today said it exceeded targets for the year after growth in data and broadband usage helped annual profits hit £8.7bn (€10.16bn).

A £1bn (€1.16bn) cost savings programme and signs of improved revenue trends in key markets such as the UK also lifted the firm.

Operating profits of £11.9bn (€13.9bn) were ahead of the company’s previous guidance in February after revenues increased by 8.4% to £44.5bn (€51.9bn) in the year to March 31 – down 2.3% when excluding currency changes and acquisitions.

Vodafone said it expected a return to organic revenues growth in the current financial year, although this will depend on the economic environment and the level of unemployment within Europe.

Revenue growth in emerging economies, in particular India and Africa, is expected to continue as the group boosts its presence and offers more data services in these markets.

Chief executive Vittorio Colao said: “Vodafone’s financial results exceeded our upgraded guidance on all measures. Revenue trends have improved again in the fourth quarter, driven by growth in mobile data and fixed broadband.”