Final Results - Part 2

RNS Number : 2471V

Vodafone Group Plc

27 May 2008

 



VODAFONE GROUP PLC VODAFONE ANNOUNCES RESULTS FOR  THE YEAR ENDED 31 MARCH 2008 PART 2

Embargo: Not for publication before 07:00 hours 27 May 2008

CONSOLIDATED INCOME STATEMENT

	2008  £m	2007  £m
Revenue	35,478	31,104
Cost of sales	(21,890)	(18,725)
Gross profit	13,588	12,379
Selling and distribution expenses	(2,511)	(2,136)
Administrative expenses	(3,878)	(3,437)
Share of result in associated undertakings	2,876	2,728
Impairment losses	-	(11,600)
Other income and expense	(28)	502
Operating profit/(loss)	10,047	(1,564)
Non-operating income and expense	254	4
Investment income	714	789
Financing costs	(2,014)	(1,612)
Profit/(loss) before taxation	9,001	(2,383)
Income tax expense	(2,245)	(2,423)
Profit/(loss) for the financial year from continuing operations	6,756	(4,806)
Loss from discontinued operations	-	(491)
Profit/(loss) for the financial year	6,756	(5,297)
Attributable to:
- Equity shareholders	6,660	(5,426)
- Minority interests	96	129
Basic earnings/(loss) per share
Profit/(loss) from continuing operations	12.56p	(8.94)p
Loss from discontinued operations	-	(0.90)p
Profit/(loss) for the financial year	12.56p	(9.84)p
Diluted earnings/(loss) per share
Profit/(loss) from continuing operations	12.50p	(8.94)p
Loss from discontinued operations	-	(0.90)p
Profit/(loss) for the financial year	12.50p	(9.84)p

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

	2008  £m	2007  £m
Gains on revaluation of available-for-sale investments, net of tax	1,949	2,108
Exchange differences on translation of foreign operations, net of tax	5,537	(3,804)
Net actuarial (losses)/gains on defined benefit pension schemes, net of tax	(37)	50
Foreign exchange (gains)/ losses transferred to the Consolidated Income Statement	(7)	838
Fair value gains transferred to the Consolidated Income Statement	(570)	-
Other	37	-
Net gain/(loss) recognised directly in equity	6,909	(808)
Profit/(loss) for the financial year	6,756	(5,297)
Total recognised income and expense relating to the financial year	13,665	(6,105)
Attributable to:
- Equity shareholders	13,912	(6,210)
- Minority interests	(247)	105

CONSOLIDATED BALANCE SHEET

	2008  £m	2007  £m
Non-current assets
Goodwill	51,336	40,567
Other intangible assets	18,995	15,705
Property, plant and equipment	16,735	13,444
Investments in associated undertakings	22,545	20,227
Other investments	7,367	5,875
Deferred tax assets	436	410
Post employment benefits	65	82
Trade and other receivables	1,067	494
	118,546	96,804
Current assets
Inventory	417	288
Taxation recoverable	57	21
Trade and other receivables	6,551	5,023
Cash and cash equivalents	1,699	7,481
	8,724	12,813
Total assets	127,270	109,617
Equity
Called up share capital	4,182	4,172
Share premium account	42,934	43,572
Own shares held	(7,856)	(8,047)
Additional paid-in capital	100,151	100,185
Capital redemption reserve	10,054	9,132
Accumulated other recognised income and expense	10,558	3,306
Retained losses	(81,980)	(85,253)
Total equity shareholders' funds	78,043	67,067
Minority interests	1,168	226
Written put options over minority interests	(2,740)	-
Total minority interests	(1,572)	226
Total equity	76,471	67,293
Non-current liabilities
Long term borrowings	22,662	17,798
Deferred tax liabilities	5,109	4,626
Post employment benefits	104	123
Provisions	306	296
Trade and other payables	645	535
	28,826	23,378
Current liabilities
Short term borrowings	4,532	4,817
Current taxation liabilities	5,123	5,088
Provisions	356	267
Trade and other payables	11,962	8,774
	21,973	18,946
Total equity and liabilities	127,270	109,617

CONSOLIDATED CASH FLOW STATEMENT

	2008  £m	2007  £m
Net cash flows from operating activities	10,474	10,328
Cash flows from investing activities
Purchase of interests in subsidiary undertakings and joint ventures, net of cash acquired	(5,957)	(2,805)
Disposal of interests in subsidiary undertakings, net of cash disposed	-	6,767
Disposals of interests in associated undertakings	-	3,119
Purchase of intangible assets	(846)	(899)
Purchase of property, plant and equipment	(3,852)	(3,633)
Purchase of investments	(96)	(172)
Disposal of property, plant and equipment	39	34
Disposal of investments	785	80
Dividends received from associated undertakings	873	791
Dividends received from investments	72	57
Interest received	438	526
Net cash flows from investing activities	(8,544)	3,865
Cash flows from financing activities
Issue of ordinary share capital and reissue of treasury shares	310	193
Net movement in short term borrowings	(716)	953
Proceeds from issue of long term borrowings	1,711	5,150
Repayment of borrowings	(3,847)	(1,961)
Purchase of treasury shares	-	(43)
B share capital redemption	(7)	(5,713)
B share preference dividends paid	-	(3,291)
Equity dividends paid	(3,658)	(3,555)
Dividends paid to minority shareholders in subsidiary undertakings	(113)	(34)
Interest paid	(1,545)	(1,051)
Net cash flows from financing activities	(7,865)	(9,352)
Net cash flows	(5,935)	4,841
Cash and cash equivalents at beginning of the financial year	7,458	2,932
Exchange gain/(loss) on cash and cash equivalents	129	(315)
Cash and cash equivalents at end of the financial year	1,652	7,458

NOTES TO THE PRELIMINARY RESULTS

FOR THE YEAR ENDED 31 MARCH 2008

1  Basis of preparation

The preliminary results for the year ended 31 March 2008 are an abridged statement of the full Annual Report, which was approved by the Board of Directors on 27 May 2008. The Auditors' Report on these accounts was unqualified and did not contain statements under section 237(2) or 237(3) of the Companies Act 1985. The preliminary results do not comprise statutory accounts within the meaning of section 240 of the Companies Act 1985. The Annual Report for the year ended 31 March 2008 will be delivered to the Registrar of Companies following the Company's Annual General Meeting, to be held on 29 July 2008.

The preliminary results are prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board. The preliminary results are also prepared in accordance with IFRS adopted by the European Union ('EU'), the Companies Act 1985 and Article 4 of the EU IAS Regulations. However, the financial information included in this preliminary announcement does not itself contain sufficient information to comply with IFRS. The Company will publish full financial statements that comply with IFRS in June 2008.

The preparation of the preliminary results requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenue and expenses during the reporting period. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

2  Dividends

	2008 £m	2007 £m
Equity dividends on ordinary shares:
Declared during the financial year:
Final dividend for the year ended 31 March 2007: 4.41 pence per    share (2006: 3.87 pence per share)	2,331	2,328
Interim dividend for the year ended 31 March 2008: 2.49 pence per    share (2007: 2.35 pence per share)	1,322	1,238
	3,653	3,566
Proposed after the balance sheet date and not recognised as a liability:
Final dividend for the year ended 31 March 2008: 5.02 pence per    share (2007: 4.41 pence per share)	2,667	2,331

OTHER INFORMATION

1)  Copies of this document are available from the Company's registered office:

Vodafone House

The Connection

Newbury

Berkshire

RG14 2FN

2)  These preliminary results will be available on the Vodafone Group Plc website, www.vodafone.com, from 27 May 2008.

For further information:

Vodafone Group 

Investor Relations	Media Relations
Telephone: [phone]	Telephone: [phone]

Vodafone, the Vodafone logos, Vodafone At Home, Vodafone Office, Vodafone Mobile Connect, Vodafone M-PESA, Vodafone Money Transfer, Vodafone HappyLive!, Vodafone Family, Vodacom and Vodafone live! are trademarks of the Vodafone Group. Other product and company names mentioned herein may be the trade marks of their respective owners.

Copyright © Vodafone Group Plc 2008

DEFINITION OF TERMS

Term	Definition
Change at constant exchange rates	Growth or change calculated by restating the prior period's results as if they had been generated at the current period's exchange rates. Also referred to as 'constant currency'.
Handheld business devices	A wireless connection device which allows access to business applications and to push and pull email.
Mobile customer	A mobile customer is defined as a Subscriber Identity Module ('SIM'), or in territories where SIMs do not exist, a unique mobile telephone number, which has access to the network for any purpose, including data only usage, except telemetric applications. Telemetric applications include, but are not limited to, asset and equipment tracking, mobile payment and billing functionality, e.g. vending machines and meter readings, and include voice enabled customers whose usage is limited to a central service operation, e.g. emergency response applications in vehicles.
Mobile PC connectivity devices	A wireless connection device which provides access to 3G services to users with an active PC or laptop connection. This includes Vodafone Mobile Connect Cards with 3G broadband, Vodafone Mobile Connect 3G/GPRS data cards and Vodafone Mobile Connect USB modems.
Total communications revenue	Comprises all fixed location services revenue, data revenue, fixed line revenue and other service revenue.

For definitions of other terms please refer to page 159 of the Group's Annual Report for the year ended 31 March 2007.

FORWARD-LOOKING STATEMENTS

This document contains 'forward-looking statements' within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the Group's financial condition, results of operations and businesses and certain of the Group's plans and objectives. 

In particular, such forward-looking statements include statements with respect to Vodafone's expectations as to launch and roll out dates for products, services or technologies offered by Vodafone; expectations regarding the operating environment and market conditions; intentions regarding the development of products, services and initiatives introduced by Vodafone or by Vodafone in conjunction with third parties; revenue and growth expected from our Total Communications strategy; the development and impact of new mobile technology, including the development of 4G technology and the launch of faster data speeds; anticipated benefits to the Group from cost efficiency programmes, outsourcing of IT functions and network sharing agreements; growth in customers and usage; expected growth prospects in Europe and the EMAPA region; expectations regarding the performance of investments, associates, joint ventures and newly acquired businesses, including the expected performance of Verizon Wireless; the Group's expectations for revenue, adjusted operating profit, average foreign exchange rates, depreciation and amortisation charges, capitalised fixed asset additions, capital intensity, free cash flow, cash payments for tax and associated interest, payments of deferred capital expenditures, adjusted effective tax rates and foreign exchange rate changes contained within the Chief Executive's statement on pages 2 and 3 and outlook statement on page 5 of this document, and expectations for the Group's future performance generally, including average revenue per user, costs, capital expenditures, operating expenditures and margins; the expected contribution to the Group's revenue of voice services, messaging services, data services, broadband services, fixed location pricing, internet services and mobile advertising; the rate of dividend growth by the Group or its existing investments; possible future acquisitions, including increases in ownership in existing investments; the timely completion of pending acquisition transactions and pending offers for investments, including licence acquisitions, and the expected funding required to complete such acquisitions or investments; mobile penetration and coverage rates and the Group's ability to acquire spectrum; the impact of regulatory and legal proceedings involving Vodafone and of scheduled or potential regulatory changes; expectations with respect to long term shareholder value growth; overall market trends and other trend projections.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans' or 'targets'. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the following: changes in economic or political conditions in markets served by operations of the Group that would adversely affect the level of demand for mobile services; greater than anticipated competitive activity, from both existing competitors and new market entrants, including Mobile Virtual Network Operators, which could require changes to the Group's pricing models, lead to customer churn and make it more difficult to acquire new customers, and reduce profitability; the impact of investment in network capacity and the deployment of new technologies, or the rapid obsolescence of existing technology; slower than expected customer growth and reduced customer retention; changes in the spending patterns of new and existing customers; the possibility that new products and services will not be commercially accepted or perform according to expectations or that vendors' performance in marketing these technologies will not meet the Group's requirements; the Group's ability to win 3G licence allocations; the Group's ability to realise expected synergies and benefits associated with 3G technologies; the Group's ability to expand its spectrum position; a lower than expected impact of new or existing products, services or technologies on the Group's future revenue, cost structure and capital expenditure outlays; the ability of the Group to harmonise mobile platforms and delays, impediments or other problems associated with the roll out and scope of and other new or existing products, services or technologies in new markets; the ability of the Group to offer new services and secure the timely delivery of high quality, reliable handsets, network equipment and other key products from suppliers; the Group's ability to develop competitive data content and services that will attract new customers and increase average usage; future revenue contributions of both voice and non-voice services; greater than anticipated prices of new mobile handsets; changes in the costs to the Group of or the rates the Group may charge for terminations and roaming minutes; the Group's ability to achieve meaningful cost savings and revenue improvements as a result of its cost reduction programmes; the ability to realise benefits from entering into partnerships for developing data and internet services and entering into service franchising and brand licensing; the possibility that the pursuit of new, unexpected strategic opportunities may have a negative impact on the Group's financial performance; developments in the Group's financial condition, earnings and distributable funds and other factors that the Board of Directors takes into account in determining the level of dividends; any unfavourable conditions, regulatory or otherwise, imposed in connection with pending or future acquisitions or dispositions and the integration of acquired companies in the Group's existing operations; the risk that, upon obtaining control of certain investments, the Group discovers additional information relating to the businesses of that investment leading to restructuring charges or write-offs or with other negative implications; changes in the regulatory framework in which the Group operates, including possible action by regulators in markets in which the Group operates or by the EU regulating rates the Group is permitted to charge; the impact of legal or other proceedings against the Group or other companies in the mobile communications industry; the possibility that new marketing or usage stimulation campaigns or efforts and customer retention schemes are not an effective expenditure; the possibility that the Group's integration efforts do not reduce the time to market for new products or improve the Group's cost position; loss of suppliers or disruption of supply chains; the Group's ability to satisfy working capital requirements through borrowing in capital markets, bank facilities and operations; changes in exchange rates, including particularly the exchange rate of pounds sterling to the euro and the US dollar; changes in statutory tax rates and profit mix which would impact the weighted average tax rate; changes in tax legislation in the jurisdictions in which the Group operates; and final resolution of open issues which might impact the effective tax rate; timing of tax payments relating to the resolution of open issues.

Furthermore, a review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found under 'Risk Factors, Seasonality and Outlook - Risk Factors' in Vodafone Group Plc's Annual Report for the year ended 31 March 2007. All subsequent written or oral forward-looking statements attributable to the Company or any member of the Group or any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward-looking statements in this document will be realised. Neither Vodafone nor any of its affiliates intends to update these forward-looking statements. 

USE OF NON-GAAP FINANCIAL INFORMATION

In presenting and discussing the Group's reported financial position, operating results and cash flows, certain information is derived from amounts calculated in accordance with IFRS but this information is not itself an expressly permitted GAAP measure. Such non-GAAP measures should not be viewed in isolation as alternatives to the equivalent GAAP measure.

A summary of certain non-GAAP measures included in this results announcement, together with details where additional information and reconciliation to the nearest equivalent GAAP measure can be found, is shown below.

Non-GAAP measure	Equivalent GAAP measure	Location in this results announcement of reconciliation and further information
EBITDA	Operating profit/(loss)	Financial results beginning on page 6
Adjusted operating profit	Operating profit/(loss)	Financial results beginning on page 6
Adjusted profit before tax	Profit/(loss) before taxation	Taxation on page 8
Adjusted profit from continuing operations attributable to equity shareholders	Profit/(loss) from continuing operations attributable to equity shareholders	Earnings/(loss) per share on page 8
Adjusted effective tax rate	Income tax expense as a percentage of profit/(loss) before taxation	Taxation on page 8
Adjusted earnings per share	Basic earnings/(loss) per share	Earnings/(loss) per share on page 8
Operating free cash flow	Net cash flows from operating activities	Cash flows and funding beginning on page 19
Free cash flow	Net cash flows from operating activities	Cash flows and funding beginning on Page 19

ADDITIONAL INVESTOR INFORMATION AND KEY PERFORMANCE INDICATORS

REGIONAL ANALYSIS FOR THE YEAR ENDED 31 MARCH

	Revenue		EBITDA		Adjusted operating    profit/(loss)		Capitalised fixed asset    additions		Operating free     cash flow
	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
EUROPE
Germany	5,397	5,443	2,342	2,429	1,265	1,354	392	425	2,059	1,971
Italy	4,435	4,245	2,158	2,149	1,573	1,575	411	421	1,764	1,823
Spain	5,063	4,500	1,806	1,567	1,282	1,100	533	547	1,383	1,091
UK	5,424	5,124	1,431	1,459	431	511	465	661	936	794
Arcor	1,632	1,441	325	267	225	171	221	189	117	71
Other Europe
Greece	1,177	1,202	409	416	234	243	127	110	312	269
Netherlands	1,300	1,137	403	357	246	208	123	163	251	254
Portugal	1,040	926	373	323	239	195	123	120	240	225
Other(1)	1,066	1,010	443	434	286	285	96	96	346	329
Associates(2)	-	-	-	-	425	517	-	-	-	-
	4,583	4,275	1,628	1,530	1,430	1,448	469	489	1,149	1,077
Intra-region revenue	(453)	(436)	-	-	-	-	-	-	-	-
Total Europe(2)	26,081	24,592	9,690	9,401	6,206	6,159	2,491	2,732	7,408	6,827
EMAPA
Eastern Europe
Romania	836	722	394	340	169	129	146	134	280	250
Turkey(3)	1,127	698	216	151	21	(68)	285	143	(11)	102
Other(4)	1,191	1,057	389	328	142	123	202	158	213	157
	3,154	2,477	999	819	332	184	633	435	482	509
Middle East, Africa and  Asia
Egypt	933	741	455	391	312	295	251	192	240	(2)
India(5)	1,822	-	598	-	35	-	1,030	-	(180)	-
Vodacom	1,609	1,478	586	532	365	327	204	221	343	324
Other(6)	183	346	84	148	57	72	69	161	38	25
	4,547	2,565	1,723	1,071	769	694	1,554	574	441	347
Pacific	1,645	1,399	423	361	181	159	212	251	180	167
Associates - US	-	-	-	-	2,447	2,077	-	-	-	-
Associates - other(2)	-	-	-	-	-	130	-	-	-	-
Intra-region revenue	(1)	-	-	-	-	-	-	-	-	-
Total EMAPA(2)	9,345	6,441	3,145	2,251	3,729	3,244	2,399	1,260	1,103	1,023
Common functions	170	168	343	308	140	128	185	216	119	231
Inter-region revenue	(118)	(97)	-	-	-	-	-	-	-	-
Total Group	35,478	31,104	13,178	11,960	10,075	9,531	5,075	4,208	8,630	8,081

Notes:

(1)  Includes elimination of £10 million (2007: £10 million) of intercompany revenue between operating companies within the Other Europe segment.

(2)  During the year ended 31 March 2008, the Group changed the organisational structure of its operations and the Group's associated undertaking in France, SFR, is now managed within the Europe region and reported within Other Europe.

(3)  Presents the results from 24 May 2006, being the acquisition date.

(4)  Includes elimination of £2 million (2007: £2 million) of intercompany revenue between operating companies within the Eastern Europe segment.

(5)  Presents the results of Vodafone Essar from 8 May 2007, being the acquisition date.

(6)  Includes the results of Bharti Airtel up to February 2007.

See page 26 for definition of terms and page 28 for use of non-GAAP financial information.

  REGIONAL RESULTS

FOR THE YEAR ENDED 31 MARCH

Group

	Quarter ended					Quarter ended					Quarter ended
	30  June	30  September	31  December	31  March		30  June	30  September	31  December	31  March			30  June		30  September			31  December			31  March
	2007	2007	2007	2008		2006	2006	2006	2007		% change			% change			% change			% change
	£m	£m	£m	£m		£m	£m	£m	£m		£	Organic  (2)		£	Organic  (2)		£	Organic  (2)		£	Organic  (2)(3)
Revenue	8,253	8,741	9,163	9,321		7,679	7,915	7,915	7,595		7.5	4.0		10.4	4.8		15.8	4.4		22.7	3.6
Voice    revenue(1)	5,904	6,256	6,303	6,416		5,574	5,743	5,534	5,417		5.9	1.1		8.9	1.1		13.9	0.7		18.4	1.5
Messaging    revenue	950	998	1,045	1,086		851	935	933	868		11.6	9.5		6.7	7.5		12.0	7.7		25.1	6.8
Data revenue	452	515	558	655		334	316	368	410		35.3	32.2		63.0	58.5		51.6	41.5		59.8	33.1
Fixed line    revenue(1)	402	400	474	598		383	387	398	412		5.0	11.5		3.4	8.3		19.1	6.7		45.1	(0.2)
Other service   revenue	5	5	10	10		-	-	-	8		-	-		-	-		-	-		25.0	2.9
Service    revenue	7,713	8,174	8,390	8,765		7,142	7,381	7,233	7,115		8.0	4.2		10.7	4.9		16.0	4.2		23.2	3.9
Europe
	Quarter ended					Quarter ended					Quarter ended
	30  June	30  September	31  December	31  March		30  June	30  September	31  December	31  March			30 June		30  September			31  December			31  March
	2007	2007	2007	2008		2006	2006	2006	2007		% change			% change			% change			% change
	£m	£m	£m	£m		£m	£m	£m	£m		£	Organic (2)		£	Organic (2)		£	Organic (2)		£	Organic  (2)(3)
Revenue	6,219	6,450	6,652	6,760		6,220	6,264	6,200	5,908		-	1.1		3.0	3.0		7.3	2.2		14.4	1.5
Voice    revenue(1)	4,292	4,412	4,332	4,449		4,445	4,475	4,250	4,091		(3.4)	(2.4)		(1.4)	(1.4)		1.9	(2.2)		8.8	(1.2)
Messaging    revenue	764	811	825	862		711	747	733	734		7.5	8.5		8.6	8.7		12.6	8.1		17.4	7.3
Data revenue	398	445	472	512		312	291	335	362		27.6	28.9		52.9	53.0		40.9	35.5		41.4	28.3
Fixed line    revenue(1)	391	389	462	585		364	367	373	389		7.4	8.7		6.0	6.4		23.9	5.5		50.4	(0.9)
Other service   revenue	5	6	8	10		-	-	-	8		-	-		-	-		-	-		25.0	-
Service    revenue	5,850	6,063	6,099	6,418		5,832	5,880	5,691	5,584		0.3	1.4		3.1	3.1		7.2	2.0		14.9	1.8
	Quarter ended					Quarter ended					Quarter ended
	30  June	30  September	31  December	31  March		30  June	30  September	31  December	31  March			30  June		30  September			31  December			31  March
	2007	2007	2007	2008		2006	2006	2006	2007		% change			% change			% change			% change
	£m	£m	£m	£m		£m	£m	£m	£m		£	Organic (2)		£	Organic (2)		£	Organic (2)		£	Organic  (2)(3)
Service    revenue
Germany	1,238	1,277	1,266	1,326		1,339	1,351	1,269	1,197		(7.5)	(6.3)		(5.5)	(5.5)		(0.2)	(5.2)		10.8	(2.0)
Italy	1,005	1,020	1,072	1,176		1,051	1,045	1,021	966		(4.4)	(3.1)		(2.4)	(2.3)		5.0	(3.1)		21.7	0.2
Spain	1,110	1,141	1,155	1,240		1,001	1,049	1,013	999		10.9	12.5		8.8	8.9		14.0	6.6		24.1	5.1
UK	1,209	1,294	1,235	1,214		1,153	1,192	1,166	1,170		4.9	4.9		8.6	8.5		5.9	5.9		3.8	3.8
Arcor	375	383	411	438		346	351	355	367		8.4	9.9		9.1	9.3		15.8	9.5		19.3	5.9
Other	1,028	1,076	1,059	1,132		1,036	1,054	958	970		(0.8)	0.6		2.1	2.1		10.5	5.0		16.7	1.9
Eliminations	(115)	(128)	(99)	(108)		(94)	(162)	(91)	(85)
	5,850	6,063	6,099	6,418		5,832	5,880	5,691	5,584		0.3	1.4		3.1	3.1		7.2	2.0		14.9	1.8

Notes:

(1)  Revenue relating to fixed line activities provided by mobile operators, previously classified within voice revenue, is now presented as fixed line revenue, together with revenue from fixed line operators and fixed broadband. All prior periods have been adjusted accordingly.

(2)  Group, Europe, Italy, Spain and Other Europe organic growth, where relevant, are stated excluding the contribution from the acquisition of Tele2 in Italy and Spain and Perlico in Ireland. Group amounts also exclude Turkey and India (see note 2 on page 31).

(3)  On 1 January 2008, Vodafone Malta rebased all of its tariffs and changed its functional currency from maltese lira to euros. In calculating all constant exchange rate and organic metrics including Malta, previous maltese lira amounts have been translated into euros at the 1 January 2008 maltese lira/euro exchange rate.

REGIONAL RESULTS

FOR THE YEAR ENDED 31 MARCH

EMAPA

	Quarter ended					Quarter ended					Quarter ended
	30 June	30 September	31 December	31 March		30 June	30 September	31 December	31 March			30 June			30 September			31 December			31 March
	2007	2007	2007	2008		2006	2006	2006	2007		% change				% change			% change			% change
	£m	£m	£m	£m		£m	£m	£m	£m		£		Organic (2)		£	Organic (2)		£	Organic (2)		£	Organic (2)(3)
Revenue	2,021	2,280	2,496	2,548		1,436	1,639	1,700	1,666		40.7		18.7		39.1	13.5		46.8	13.8		52.9	12.6
Voice    revenue(1)	1,631	1,868	1,990	1,997		1,143	1,288	1,302	1,344		42.7		16.4		45.0	11.7		52.8	11.9		48.6	11.8
Messaging    revenue	189	188	222	225		142	189	201	135		33.1		15.6		(0.5)	1.3		10.4	5.7		66.7	4.6
Data revenue	55	72	87	145		25	31	32	50		120.0		64.5		132.3	101.7		171.9	97.0		190.0	85.0
Fixed line    revenue(1)	11	11	12	14		19	20	26	22		(42.1)		740.7		(45.0)	232.3		(53.8)	72.0		(36.4)	29.9
Other service   revenue	-	-	1	-		-	-	-	-
Service    revenue	1,886	2,139	2,312	2,381		1,329	1,528	1,561	1,551		41.9		18.2		40.0	13.2		48.1	13.7		53.5	13.1
	Quarter ended					Quarter ended					Quarter ended
	30 June	30 September	31 December	31 March		30 June	30 September	31 December	31 March				30 June		30 September			31 December			31 March
	2007	2007	2007	2008		2006	2006	2006	2007		% change				% change			% change			% change
	£m	£m	£m	£m		£m	£m	£m	£m		£		Organic (2)		£	Organic (2)		£	Organic (2)		£	Organic (2)(3)
Service    revenue
Eastern Europe	714	759	786	782		477	646	629	640		49.7		12.9		17.5	9.2		25.0	9.9		22.2	7.8
Middle East,    Africa &    Asia	837	1,044	1,150	1,191		559	579	606	588		49.7		28.9		80.3	21.6		89.8	20.9		102.6	18.7
Pacific	335	336	377	408		293	303	326	323		14.3		9.5		10.9	5.5		15.6	7.5		26.3	11.6
Eliminations	-	-	(1)	-		-	-	-	-
	1,886	2,139	2,312	2,381		1,329	1,528	1,561	1,551		41.9		18.2		40.0	13.2		48.1	13.7		53.5	13.1

Notes:

(1)  Revenue relating to fixed line activities provided by mobile operators, previously classified within voice revenue, is now presented as fixed line revenue, together with revenue from fixed line operators and fixed broadband. All prior periods have been adjusted accordingly.

(2)  Group, EMAPA, Eastern Europe and Middle East, Africa & Asia organic growth, where relevant, exclude Turkey and India as these were not part of the Group for all of the year to 31

March 2007 and 31 March 2008, respectively.

(3)  On 1 October 2007, Vodafone Romania rebased all of its tariffs and changed its functional currency from US dollars to euros. In calculating all constant exchange rate and organic metrics which include Romania, previous US dollar amounts have been translated into euros at the 1 October 2007 US$/euro exchange rate.

RECONCILATION OF ADJUSTED EARNINGS

FOR THE YEAR ENDED 31 MARCH 

31 March 2008	Reported  £m	Adjustments    £m	Adjusted  £m
Operating profit	10,047	28(1)	10,075
Non-operating income and expense	254	(254)(2)	-
Investment income and financing costs	(1,300)	150(3)	(1,150)
Profit before taxation	9,001	(76)	8,925
Income tax expense	(2,245)	44(4)	(2,201)
Profit for the year	6,756	(32)	6,724
Attributable to:
- Equity shareholders	6,660	(32)	6,628
- Minority interests	96	-	96
Basic earnings per share from continuing operations	12.56p		12.50p

Notes:

(1)  Consists of a £28 million adjustment relating to other income and expense, which is comprised of a pretax charge offsetting the tax benefit arising on recognition of a pre-acquisition deferred tax asset (see note 4 below). 

(2)  Includes £250 million representing the profit on the disposal of the Group's 5.60% direct investment in Bharti Airtel.

(3)  Includes a £143 million adjustment in relation to the change in fair value of equity put rights and similar arrangements (see note 2 in investment income and financing costs on page 7) and a £7 million adjustment in relation to foreign exchange on certain intercompany balances and the foreign exchange on financial instruments received as consideration in the disposal of Vodafone Japan to SoftBank in April 2006.

(4)  Represents a £72 million adjustment relating to tax on the adjustments used to derive adjusted profit before taxation offset by a £28 million adjustment relating to the recognition of a pre-acquisition deferred tax asset. 

31 March 2007	Reported  £m	Adjustments    £m	Adjusted  £m
Operating (loss)/profit	(1,564)	11,095(1)	9,531
Non-operating income and expense	4	(4)	-
Investment income and financing costs	(823)	39(2)	(784)
(Loss)/profit before taxation	(2,383)	11,130	8,747
Income tax expense	(2,423)	13(3)	(2,410)
(Loss)/profit for the year from continuing operations	(4,806)	11,143	6,337
Attributable to:
- Equity shareholders	(4,932)	11,143	6,211
- Minority interests	126	-	126
Basic (loss)/earnings per share from continuing operations	(8.94)p		11.26p

Notes:

(1)  Adjustments relate to impairment losses of £11,600 million (Germany: £6,700 million and Italy: £4,900 million), less a £502 million adjustment relating to other income and expense and less a £3 million adjustment related to the share of associated undertakings' non-operating income.

(2)  Comprises a £41 million adjustment in relation to foreign exchange differences in relation to certain intercompany balances and on financial instruments received as consideration in the disposal of Vodafone Japan to SoftBank, which completed in April 2006, less a £2 million adjustment in relation to the change in fair value of equity put rights and similar arrangements.

(3)  Represents tax on the adjustments used to derive adjusted profit before tax.

SUPPLEMENTARY CASH FLOW INFORMATION

FOR THE YEAR ENDED 31 MARCH 

Operating free cash flow to net debt reconciliation

	31 March 2008 £m	31 March  2007 £m
Operating free cash flow	8,630	8,073
- from continuing operations	8,630	8,081
- from discontinued operations	-	(8)
Taxation	(2,815)	(2,243)
Dividends received from associated undertakings	873	791
Dividends paid to minority shareholders in subsidiary undertakings	(113)	(34)
Dividends received from investments	72	57
Interest received	438	526
Interest paid	(1,545)	(1,051)
Free cash flow	5,540	6,119
- from continuing operations	5,540	6,127
- from discontinued operations	-	(8)
Acquisitions and disposals(1)	(6,541)	7,723
Written put options over minority interests	(2,521)	496
Equity dividends paid	(3,658)	(3,555)
Purchase of treasury shares	-	(43)
B share scheme	(1)	(9,027)
Foreign exchange	(3,238)	1,024
Other	321	47
Net debt increase	(10,098)	2,784
Opening net debt(2)	(15,049)	(17,833)
Closing net debt	(25,147)	(15,049)

Notes:

(1)  Includes net cash and cash equivalents paid of £5,268 million (2007: £6,989 million) and assumed debt of £1,273 million (2007: £734 million), but excludes liabilities related to written put options over minority interests, which are shown separately.

(2)  Opening net debt as of 1 April 2006 includes £515 million in relation to Vodafone Japan, which was disposed in April 2006.

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END

 

 

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