Final Results - Part 4
Vodafone Group Plc
30 May 2006
Vodafone Group Plc
Preliminary Results for the year ended 31 March 2006
PART 4
NOTES TO THE PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31 MARCH 2006
(CONTINUED)
5 (Loss)/earnings per share
2006 2005
Weighted average number of shares for basic earnings per
share (millions) 62,607 66,196
Weighted average number of shares for diluted earnings per
share (millions) (1) 62,607 66,427
Basic (loss)/earnings per share from continuing operations (27.66)p 8.12p
Diluted (loss)/earnings per share from continuing
operations (27.66)p 8.09p
Basic (loss)/earnings per share on (loss)/profit for the
financial year (35.01)p 9.68p
Diluted (loss)/earnings per share on (loss)/profit
for the financial year (35.01)p 9.65p
Adjusted basic earnings per share from continuing operations 10.11p 8.95p
Adjusted diluted earnings per share from continuing
operations (1) 10.08p 8.92p
2006 2005
£m £m
(Loss)/profit for the financial year (21,916) 6,410
Loss/(profit) from discontinued operations 4,598 (1,035)
-------- --------
(Loss)/profit for (loss)/earnings per share from continuing
operations (17,318) 5,375
Adjustments:
- Impairment losses 23,515 475
- Other income and expense (15) -
- Share of associated undertakings' non-operating income (17) -
- Non-operating income and expense 2 7
- Changes in the fair value of equity put rights and
similar arrangements 161 67
- Tax on items not related to underlying business
performance - 3
-------- --------
Profit for adjusted earnings per share from continuing
operations 6,328 5,927
======== ========
(1) In the year ended 31 March 2006, 183 million shares have been excluded
from the calculation of the weighted average number of shares as they are
anti dilutive. The weighted average number of shares for adjusted diluted
earnings per share from continuing operations was 62,790 million, including
the 183 million shares.
6 Dividends
2006 2005
£m £m
Equity dividends on ordinary shares:
Declared and paid during the financial year:
Final dividend for the year ended 31 March 2005: 2.16
pence per share (2004: 1.078 pence per share) 1,386 728
Interim dividend for the year ended 31 March 2006: 2.20
pence per share (2005: 1.91 pence per share) 1,367 1,263
--------- ---------
2,753 1,991
========= =========
Proposed or declared but not recognised as a liability:
Final dividend for the year ended 31 March 2006: 3.87
pence per share (2005: 2.16 pence per share) 2,327 1,386
========= =========
7 Cash flow information
Reconciliation of net cash flows from operating activities:
2006 2005
£m £m
(Loss)/profit for the year from continuing operations (17,233) 5,416
(Loss)/profit for the year from discontinued operations (4,588) 1,102
Adjustments(1):
Tax on profit 2,520 1,433
Depreciation and amortisation 5,834 5,517
Loss on disposal of property, plant and equipment 88 162
Non operating income and expense 2 (6)
Investment income (353) (303)
Financing costs 1,123 900
Impairment losses 28,415 475
Other income and expense (15) -
Share of result in associated undertakings (2,428) (1,980)
--------- ---------
Operating cash flows before movements in working capital 13,365 12,716
Decrease in inventory 23 17
Decrease/(increase) in trade and other receivables 54 (321)
Increase in payables 81 145
--------- ---------
Cash generated by operations 13,523 12,557
Tax paid (1,682) (1,578)
--------- ---------
Net cash flows from operating activities(1) 11,841 10,979
========= =========
(1) Adjustments includes amounts relating to continuing and discontinued
operations
Cash flows from discontinued operations:
2006 2005
£m £m
Net cash flows from operating activities 1,651 1,739
Net cash flows from investing activities (939) (448)
Net cash flows from financing activities (536) (1,289)
--------- ---------
Net increase in cash and cash equivalents 176 2
Cash and cash equivalents at the beginning of the
financial year 4 3
Exchange loss on cash and cash equivalents (19) (1)
--------- ---------
Cash and cash equivalents at the end of the financial year 161 4
========= =========
8 Acquisitions
A summary of the Group's significant acquisitions in the financial year is as
follows:
Czech Republic South
and Romania Africa India
£m £m £m
Net assets acquired 652 589 315
Revaluation of identifiable assets and
liabilities held (112) - -
Minority interest (2) (9) -
Goodwill 1,367 878 543
------ ------- -------
Cash consideration 1,905 1,458 858
====== ======= =======
Net cash outflow arising on acquisition:
Cash consideration 1,905 1,458 858
Cash and cash equivalents
acquired (65) (14) (9)
------ ------- -------
1,840 1,444 849
====== ======= =======
Czech Republic and Romania
On 31 May 2005, the Group acquired 99.99% of the issued share capital of
ClearWave N.V. for cash consideration of £1,905 million. ClearWave N.V. is the
parent company of a group of companies involved in the provision of mobile
telecommunications in the Czech Republic and Romania. This transaction has been
accounted for by the purchase method of accounting. On 31 March 2006, the
cancellation of the minority shareholdings in ClearWave N.V. was completed,
resulting in the Group owning the entire issued share capital of this company.
South Africa
On 26 January 2006, the Group announced that its offer to acquire a 100%
interest in VenFin Limited ('VenFin') had become wholly unconditional. VenFin's
principal asset was a 15% stake in Vodacom. At 31 March 2006 the Group held an
effective economic interest in VenFin of 98.7% and an effective voting interest
of 99.3%. On 20 April 2006, the Group completed the compulsory acquisition of
the remaining minority shareholdings in VenFin, from which date the Group held
100% of the issued share capital of VenFin. As a result, the Group holds 50% of
the share capital of Vodacom. This transaction has been accounted for by the
purchase method of accounting.
India
On 22 December 2005, the Group completed the acquisition of a 10% economic
interest in Bharti Tele-Ventures Limited (now renamed Bharti Airtel Limited) for
cash consideration of Rs.66.56 billion (£858 million). Bharti Airtel Limited is
involved in the provision of mobile telecommunications in India.
The acquisition was undertaken by way of a direct investment in 5.61% of the
ordinary share capital of Bharti Airtel Limited and the acquisition of 100% of
Bharti Enterprises Private Limited, who hold a 4.39% economic interest in Bharti
Airtel Limited. This transaction has been accounted for by the purchase method
of accounting.
9 Summary of differences between IFRS and US GAAP
The preliminary results have been prepared in accordance with IFRS, which differ
in certain significant respects from US Generally Accepted Accounting Principles
('US GAAP'). The following is a summary of the effects of the adjustments from
IFRS to US GAAP. Amounts at 31 March 2005 and for the year then ended have been
restated to give effect to the modified retrospective adoption of SFAS No. 123
(Revised 2004).
2006 2005
£m £m
Restated
Revenue (IFRS) 29,350 26,678
Items (decreasing)/increasing revenue:
Discontinued operations (944) (1,108)
Basis of consolidation (5,756) (5,423)
Connection revenue 1,106 1,223
----------- -----------
Revenue (US GAAP) 23,756 21,370
=========== ===========
IFRS (loss)/profit for the financial year (21,821) 6,518
Items (increasing)/decreasing net loss:
Investments accounted for under the equity method (1,230) (5,440)
Connection revenue and costs 10 16
Goodwill and other intangible assets (14,299) (15,534)
Impairment losses 15,377 475
Amortisation of capitalised interest (108) (105)
Interest capitalised during the financial year 36 19
Other (42) 99
Income taxes 8,902 6,680
Minority interests (95) (108)
Cumulative effect of change in accounting
principle: post employment benefits - (195)
Cumulative effect of change in accounting
principle: intangible assets - (6,177)
----------- -----------
Net loss (US GAAP) (13,270) (13,752)
=========== ===========
Basic and diluted loss per share:
Loss from continuing operations (11.64)p (12.03)p
Loss/(income) from operations and disposal of
discontinued operations (9.56)p 0.89p
Cumulative effect of changes in accounting principles - (9.63)p
----------- -----------
Net loss (21.20)p (20.77)p
=========== ===========
IFRS total equity 85,312 113,648
Items increasing/(decreasing) shareholders'
equity:
Investments accounted for under the equity method (2,287) (982)
Connection revenue and costs (5) (14)
Goodwill and other intangible assets 32,552 31,714
Capitalised interest 1,443 1,529
Other 210 104
Income taxes (30,354) (38,856)
Minority interests 113 152
----------- -----------
Shareholders' equity in accordance with US GAAP 86,984 107,295
=========== ===========
Adoption of SFAS No 123 (Revised 2004)
The Group adopted SFAS No. 123 (Revised 2004), 'Share-based Payment', and
related FASB staff positions on 1 October 2005. SFAS No. 123 (Revised 2004)
eliminates the option to account for share-based payments to employees using the
intrinsic value method and requires share-based payments to be recorded using
the fair value method. Under the fair value method, the compensation cost for
employees and directors is determined at the date awards are granted and
recognised over the service period.
Concurrent with the adoption of SFAS No. 123 (Revised 2004), the Group adopted
Staff Accounting Bulletin (SAB) 107. SAB 107 summarises the views of the
Securities and Exchange Commission ('SEC') staff regarding the interaction
between SFAS No. 123R and certain SEC rules and regulations and provides the SEC
Staff's views regarding the valuation of share-based payment arrangements for
public companies.
The Group has adopted SFAS No. 123 (Revised 2004) using the modified
retrospective method. Under this method, the Group has adjusted the financial
statements for the periods between 1 April 1995 and 30 September 2005 to give
effect to the fair value method of accounting for awards granted, modified or
settled during those periods on a basis consistent with the pro forma amounts
disclosed under the requirements of the original SFAS No. 123, 'Accounting for
Stock-Based Compensation'. The provisions of SFAS No. 123 (Revised 2004) will be
applied to all awards granted, modified, or settled after 1 October 2005.
The effect of applying the original provisions of SFAS No. 123 under the
modified retrospective method of adoption on the year ended 31 March 2005 was to
decrease loss before income taxes, loss from continuing operations and net loss
by £66 million, £30 million and £30 million respectively (six months ended 30
September 2005: increases of £4 million, £8 million and £8 million
respectively). The adjustment also had the effect of decreasing both basic and
diluted loss per share from continuing operations and net loss per share by
0.05 pence (six months ended 30 September 2005: increase of 0.01 pence).
The adoption of SFAS No. 123 (Revised 2004) increased shareholders' equity at
1 April 2004 by £112 million.
Impairment losses
As discussed in note 3, during the year ended 31 March 2006, the Group recorded
impairment losses of £23,000 million in relation to the goodwill of Vodafone
Germany and Vodafone Italy. Under US GAAP, the Group evaluated the
recoverability of the long-lived assets in Vodafone Germany and Vodafone Italy
using undiscounted cash flows, in accordance with the requirements of SFAS No.
144, and determined that the carrying amount of these assets was recoverable. As
a result, the IFRS impairment charges of £23,000 million related to Vodafone
Germany and Vodafone Italy were not recognised under US GAAP.
During the year ended 31 March 2006, the Group also recorded impairment losses
of £515 million and £4,900 million in relation to the goodwill of Vodafone
Sweden and Vodafone Japan, respectively. Under US GAAP, the Group recognised
impairment losses of licences of £883 million and £8,556 million in Vodafone
Sweden and Vodafone Japan. As a result of these impairment losses, the Group
released related deferred tax liabilities of £247 million and £3,508 million,
which have been included in the adjustment for income taxes. The impairment
losses of Vodafone Sweden's and Vodafone Japan's licences have been included in
discontinued operations under US GAAP.
Discontinued operations
As discussed in note 3, the Group disposed of its interests in Vodafone Sweden
and entered into agreements to dispose of its stake in Vodafone Japan during the
year ended 31 March 2006. Both operations have been classified as discontinued
under US GAAP.
UNAUDITED PROPORTIONATE FINANCIAL INFORMATION
FOR THE YEAR ENDED 31 MARCH 2006
Basis of preparation
The tables of financial information below are presented on a proportionate basis
from continuing operations. Proportionate presentation is not a measure
recognised under IFRS and is not intended to replace the full year results
prepared in accordance with IFRS. However, since significant entities in which
the Group has an interest are not consolidated, proportionate information is
provided as supplemental data to facilitate a more detailed understanding and
assessment of the full year results prepared in accordance with IFRS.
IFRS requires consolidation of entities which the Group has the power to control
and allows either proportionate consolidation or equity accounting for joint
ventures. IFRS also requires equity accounting for interests in which the Group
has significant influence but not a controlling interest.
The proportionate presentation, below, is a pro rata consolidation, which
reflects the Group's share of revenue and expenses in entities, both
consolidated and unconsolidated, in which the Group has an ownership interest.
Proportionate results are calculated by multiplying the Group's ownership
interest in each entity by each entity's results.
Proportionate presentation of financial information differs in material respects
to the proportionate consolidation adopted by the Group under IFRS for its joint
ventures.
Proportionate information includes results from the Group's equity accounted
investments and other investments. The Group may not have control over the
revenue, expenses or cash flows of these investments and may only be entitled to
cash from dividends received from these entities.
Group proportionate revenue is stated net of intercompany revenue. Proportionate
EBITDA represents the Group's ownership interests in the respective entities'
EBITDA. As such, proportionate EBITDA does not represent EBITDA available to the
Group.
Reconciliation of proportionate revenue to statutory revenue
2006 2005
£m £m
Proportionate revenue 41,355 36,859
Minority share of revenue in subsidiary undertakings 666 465
Group share of revenue in associated undertakings and
trade investments (12,671) (10,646)
--------- ---------
Statutory revenue 29,350 26,678
========= =========
Reconciliation of proportionate EBITDA to profit for the financial year
2006 2005
£m £m
Proportionate EBITDA 16,380 14,761
Minority share of EBITDA in subsidiary undertakings 224 141
Group's share of EBITDA in associated undertakings and
other investments (4,838) (4,162)
--------- ---------
Group EBITDA 11,766 10,740
Charges for depreciation and amortisation (4,709) (4,299)
Loss on disposal of property, plant and equipment (69) (68)
Share of results in associated undertakings 2,428 1,980
Impairment losses (23,515) (475)
Other income and expense 15 -
--------- ---------
Operating (loss)/profit (14,084) 7,878
Non-operating income (2) (7)
Investment income 353 294
Financing costs (1,120) (880)
Tax on (loss)/profit (2,380) (1,869)
(Loss)/profit for the financial year from discontinued
operations (4,588) 1,102
--------- ---------
(Loss)/profit for the financial year (21,821) 6,518
========= =========
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 30 May 2006.
For further information:
Vodafone Group
Investor Relations Media Relations
Telephone: +44 (0) 1635 664447 Telephone: +44 (0) 1635 664444
High resolution photographs are available to the media free of charge at
www.newscast.co.uk.
Video interviews with Arun Sarin, Chief Executive, and Andy Halford, Chief
Financial Officer, are available on www.vodafone.com and www.cantos.com. Also
available in audio and transcript.
Vodafone, Vodafone live!, Vodafone Mobile Connect, Vodafone Wireless Office,
Vodafone Simply, Vodafone Passport, Stop the Clock and Vodafone Radio DJ are
trademarks of the Vodafone Group. The RIM and BlackBerry(R) family of related
marks, images and symbols are the exclusive properties and trademarks of
Research In Motion Limited - used by permission. Other product and company names
mentioned herein may be the trademarks of their respective owners.
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; intentions regarding the
development of products and services introduced by Vodafone or by Vodafone in
conjunction with initiatives with third parties; the ability to integrate all
operations throughout the Group in the same format and on the same technical
platform and the ability to be operationally efficient; the development and
impact of new mobile technology; anticipated benefits to the Group of the One
Vodafone programme; the results of Vodafone's brand awareness and brand
preference campaigns; growth in customers and usage, including improvements in
customer mix; future performance, including turnover, average revenue per user
('ARPU'), cash flows, costs, capital expenditures and margins, non-voice
services and their revenue contribution; share purchases; the rate of dividend
growth by the Group or its existing investments; expectations regarding the
Group's access to adequate funding for its working capital requirements;
expected effective tax rates and expected tax payments; the ability to realise
synergies through cost savings, revenue generating services, benchmarking and
operational experience; future acquisitions, including increases in ownership in
existing investments and pending offers for investments; future disposals;
contractual obligations; mobile penetration and coverage rates; the impact of
regulatory and legal proceedings involving Vodafone; expectations with respect
to long-term shareholder value growth; Vodafone's ability to be the mobile
market leader, 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 ('MNVOs'), 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, including
mobile internet platforms, 3G, Vodafone live!, Vodafone Radio DJ and other
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; a lower than expected impact of GPRS, 3G,
Vodafone live!, Vodafone Radio DJ and other 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
3G technology, Vodafone live!, Vodafone Radio DJ 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 GPRS
and 3G 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 One Vodafone
initiative; 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
telecommunications 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 and Legal
Proceedings - Risk Factors' in Vodafone Group Plc's Annual Report for the year
ended 31 March 2005. 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.
Location in this results
Equivalent GAAP announcement of reconciliation
Non-GAAP measure measure and further information
------------------------ ------------------- -------------------------------
Group EBITDA Profit for the Proportionate financial
financial year information on page 37
Mobile EBITDA Operating profit Business review on page 6
Adjusted operating profit Operating profit Business review on page 6
Adjusted profit before Profit before tax Financial update on page 21
tax
Operating free cash flow Net cash flows from Cash flows and funding on page
operating activities 23
Adjusted profit for the Profit for the Note 5 on page 32
year attributable to financial year
equity shareholders
Adjusted earnings per Earnings per share Note 5 on page 32
share
Free cash flow Net cash flows from Cash flows and funding on page
operating activities 23
Net debt Cash and cash Cash flows and funding on page
equivalents 23
Proportionate revenue Statutory revenue Proportionate financial
information on page 37
Proportionate EBITDA Profit for the Proportionate financial
financial year information on page 37
Adjusted effective tax Tax on profit as a Financial update on page 21
rate percentage of profit
before taxation
In addition, the trading results of the Group and key markets present certain
GAAP financial information, being revenue and cost of sales related to
acquisition and retention activity, on a net basis. The Group believes that this
basis of presentation provides useful information for investors regarding trends
in net subsidies with respect to the acquisition and retention of customers and
facilitates comparability of results with other companies operating in the
mobile telecommunications business. 'Other revenue', 'Net acquisition costs' and
'Net retention costs', as used in the trading results, are defined on page 41.
DEFINITION OF TERMS
Term Definition
------------ -----------------------------------------------------------------
3G broadband 3G services enabled with High Speed Downlink Packet Access
('HSDPA') technology which enables data transmission speeds of up
to 2 megabits per second.
3G device A handset or device capable of accessing 3G data services.
Acquired Amortisation relating to intangible assets identified and
intangibles recognised separately in respect of a business combination in
amortisation excess of the intangible assets recognised by the acquiree prior
to acquisition.
Active A customer who pays a monthly fee or has made or received a
customer chargeable event in the last three months.
ARPU Total revenue excluding handset revenue and connection fees
divided by the weighted average number of customers during the
period.
Average Total ARPU in an accounting period divided by the number of months
monthly ARPU in the period.
Capitalised This measure includes the aggregate of capitalised property, plant
fixed asset and equipment additions and capitalised software costs.
additions
Churn Total gross customer disconnections in the period divided by the
average total customers in the period.
Controlled The networks include the Group's mobile operating subsidiaries and
and jointly joint ventures. Measures for controlled and jointly controlled
controlled networks include 100% for subsidiaries and the Group's
networks proportionate share for joint ventures.
Customer A customer is defined as a 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/
billing functionality (for example, vending machines and meter
readings) and includes voice enabled customers whose usage is
limited to a central service operation (for example, emergency
response applications in vehicles).
Data revenue Data revenue includes all non-voice service revenue excluding
messaging.
Depreciation This measure includes the profit or loss on disposal of property,
and other plant and equipment and computer software.
amortisation
Inter-segment Revenue between operating companies of the same business (mobile
revenue or non-mobile) in different reporting segments.
Intra-segment Revenue between operating companies of the same business (mobile
revenue or non-mobile) within the same reporting segment.
Messaging Messaging revenue includes all SMS and MMS revenue including
revenue wholesale messaging revenue, revenue from the use of messaging
services by Vodafone customers roaming away from their home
network and customers visiting the local network.
Net The total of connection fees, trade commissions and equipment
acquisition costs, net of related revenue, relating to new customer
costs connections.
Net debt Long-term borrowings, short term borrowings and mark to market
adjustments on financing instruments less cash and cash
equivalents.
Net retention The total of trade commissions, loyalty scheme and equipment
costs costs, net of related revenue, relating to customer retention and
upgrade.
Non-voice Comprises all service revenue that is not related to voice
service services including, but not limited to, messaging, downloads,
revenue Internet browsing and other data services.
Organic The percentage movements in organic growth are presented to
growth reflect operating performance on a comparable basis. Where an
entity, being a subsidiary, joint venture or associated
undertaking, was newly acquired or disposed of in the current or
prior period, the Group adjusts, under organic growth
calculations, the results for the current and prior period to
remove the amount the Group earned in both periods as a result of
the acquisition or disposal of subsidiary or associated
undertakings. Where the Group increases, or decreases, its
ownership interest in a joint venture or associated undertaking in
the current or prior period, the Group's results for the prior
period are restated at the current period's ownership level.
Further adjustments in organic calculations exclude the effect of
exchange rate movements by restating the prior period's results as
if they had been generated at the current period's exchange rates
and excludes the amortisation of acquired intangible assets.
Organic growth for proportionate results is adjusted to reflect
current year and prior year results at constant exchange rates,
using like-for-like ownership levels in both years.
Other revenue Comprises all non-service revenue. In the trading results,
presented for the mobile telecommunications business and the
Group's key markets, net other revenue excludes revenue relating
to acquisition and retention activities as such revenue is
deducted from acquisition and retention costs. The Group believes
that this basis of presentation provides useful information for
investors regarding trends in net subsidies with respect to the
acquisition and retention of customers and facilitates
comparability of results with other companies operating in the
mobile telecommunications business.
Partner Markets in which the Group has entered into a Partner Agreement
Markets with a local mobile operator enabling a range of Vodafone's global
products and services to be marketed in that operator's territory
and extending Vodafone's brand reach into such new markets.
Purchased Amortisation relating to capitalised licence and spectrum fees
licence purchased directly by the Group, and such fees recognised by an
amortisation acquiree prior to acquisition.
Vodafone A handset or device equipped with the Vodafone live! portal which
live! active has made or received a chargeable event in the last month.
device
This information is provided by RNS
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