Interim Results - Part 2

Vodafone Group Plc
12 November 2002




Vodafone Group Plc
Interim Results
For six months ended 30 September 2002

PART 2


Southern Europe

Financial highlights                            Six months to
                                                 30 September
                                                2002     2001    Increase
                                                  #m       #m           %

Statutory turnover       - Italy               2,086    1,739          20
(note 1)
                         - Other Southern
                           Europe              1,791    1,489          20
                                              ------   ------
                                               3,877    3,228          20
                                              ------   ------

Statutory total Group    - Italy                 777      676          15
operating profit         - Other Southern
(note 2)                   Europe                484      390          24
                                              ------   ------
                                               1,261    1,066          18
                                              ------   ------

Proportionate turnover   - Italy               1,598    1,328          20
(note 1)
                         - Other Southern
                           Europe              1,411    1,080          31
                                              ------   ------
                                               3,009    2,408          25
                                              ------   ------

Proportionate EBITDA     - Italy                 789      655          20
(before exceptional      - Other Southern
items)                     Europe                524      394          33
                                              ------   ------
                                               1,313    1,049          25
                                              ------   ------

Proportionate EBITDA     - Italy               49.4%    49.3%
margin (note 2)          - Other Southern
                           Europe              37.1%    36.5%

Key performance indicators
(Italy only)

ARPU (note 3)                                Eur 345  Eur 345

Churn (note 3)                                 18.5%    19.0%

Cost to connect                               Eur 26   Eur 38


(1)   comparatives have not been restated for the effect of a
change  in  the  accounting  for  distributor  discounts  on
prepaid top-up cards

(2)   before goodwill amortisation and exceptional items

(3)   ARPU and churn information represents the twelve month
periods   ended  30  September  2002  and  31  March   2002,
respectively


Italy

The results for Vodafone Omnitel demonstrate continuing strong
operational    performance,    with    Vodafone     Omnitel
consolidating  its position as the second largest  operator
in the 90% penetrated Italian mobile market.

Statutory turnover increased by 20% which was mainly attributable
to  an  18%  increase in service revenues driven by  higher
usage  levels, increased average customer base and improved
margins on prepaid top-ups, which more than offset Vodafone
Omnitel's  decision to reduce termination rates during  the
period  and  lower revenues from national  roaming.   After
adjusting   2001  results  onto  a  comparable  basis   for
distributor  discounts on prepaid top-up  cards,  statutory
turnover  and  service revenues increased by 15%  and  14%,
respectively.  Service revenue growth was also  boosted  by
data revenues, which increased by 50% compared with the six
month  period ended 30 September 2001 and for the month  of
September 2002 represented 10.4% of service revenues,  with
almost 53% of customers using data products.  This increase
was   primarily  due  to  higher  SMS  revenues  reflecting
successful  promotional activities.  Proportionate  EBITDA,
before   goodwill   amortisation  and  exceptional   items,
increased  by  20%. The proportionate EBITDA margin,  after
adjusting   2001  results  onto  a  comparable  basis   for
distributor  discounts on prepaid top-up  cards,  increased
from 47.3% to 49.4%.

Prepaid ARPU remained stable at Eur 296 for the twelve months to
30  September 2002 compared to Eur 297 for the 12 months to
31  March  2002.   Contract  ARPU benefited  from  Vodafone
Omnitel's  targeted  acquisition and retention  policy  and
increased from Eur 769 in the year ended 31 March  2002  to
Eur  794  for  the  twelve months ended 30 September  2002.
Total average cost to connect reduced to Eur 26 as a result
of Vodafone Omnitel's commercial policies.

Since 31 March 2002, Vodafone Omnitel's registered customer base
increased  over  3%  and, at 30 September  2002,  stood  at
18,316,000,  91% of whom were connected to prepaid  tariffs
and only 6% of whom were considered inactive.  On 7 October
2002,  the  number  of competitors in  the  Italian  market
reduced  to three following the split-up and sale of  Blu's
assets,  part  of  which  have been  acquired  by  Vodafone
Omnitel.

Competition was further intensified following the introduction of
mobile number portability and as other operators sought  to
emulate  the success of Vodafone Omnitel's Omnione  loyalty
programme  by  developing their own commercial  offers  and
incentives aimed at sustaining customer loyalty.   In  this
environment,  Vodafone Omnitel was able to slightly  reduce
its  churn  rate and make net customer gains.  Furthermore,
in the most recent customer satisfaction survey carried out
in  the  period, Vodafone Omnitel confirmed its  leadership
over competitors.

During the period, Vodafone Omnitel increased its focus  on
providing  innovative value added services to its  customer
base,  introducing  MMS services, which  were  successfully
launched in June 2002 making Vodafone Omnitel the first  to
do so commercially in Italy, GPRS roaming and international
prepaid top-up facilities.

In other developments, the Italian Government agreed to extend the
duration  of  2G  and 3G licences from  fifteen  to  twenty
years.

Other Southern Europe

The Group's other interests within Southern Europe continued to
achieve strong results.

The increase in statutory turnover over the period was principally
driven  by a combination of an increased customer base  and
higher  usage  levels. Turnover was adversely  affected  by
outgoing and incoming tariff reductions in Spain from March
2002  and  incoming tariff reductions in Greece in  August.
The  period  also saw the introduction of a  fourth  mobile
operator into the Greek market.

Data revenues grew particularly strongly, largely as a result of
higher  SMS revenues and in response to successful launches
of  premium  SMS products and services within  Spain.   The
launch  of  MMS  in  Greece  and Portugal,  where  Vodafone
companies  were the first operators to offer such services,
is  expected  to  contribute to future  increases  in  data
revenues. Proportionate registered customers increased  10%
to  11,983,000, including the effect of an additional  2.2%
stake increase in Vodafone Spain.

Vodafone Portugal maintained its overall market position as the
second  largest  operator in Portugal whilst  strengthening
its leadership in the contract segment.

The Group's operations in Albania, Malta and Romania all continue
to  perform satisfactorily in terms of customer growth  and
profitability.  In particular, Albania, which has only been
operating  for fourteen months, now has a market  share  of
over  40%.  In Romania, the Government is shortly to  award
four UMTS licences.

AMERICAS


Financial highlights                             Six months to
                                                  30 September
                                                  2002     2001  Inc/(dec
                                                                        )
                                                    #m       #m         %

Statutory turnover       - Verizon Wireless          -        -         -
                         - Other Americas            5        6      (17)
                                                ------   ------
                                                     5        6      (17)
                                                ------   ------

Statutory total Group    - Verizon Wireless        653      745      (12)
operating profit         - Other Americas          (9)      (5)      (80)
(note 1)
                                                ------   ------
                                                   644      740      (13)
                                                ------   ------

Proportionate turnover   - Verizon Wireless      2,841    2,754         3
                         - Other Americas           66       85      (22)
                                                ------   ------
                                                 2,907    2,839         2
                                                ------   ------

Proportionate EBITDA     - Verizon Wireless      1,002      992         1
(before exceptional      - Other Americas            8        8         -
items)
                                                ------   ------
                                                 1,010    1,000         1
                                                ------   ------

Proportionate EBITDA     - Verizon Wireless      35.3%    36.0%
Margin                   - Other Americas        12.1%     9.4%

Key performance
indicators
(Verizon Wireless only)

ARPU (note 2)                                  USD 574  USD 576

Churn (note 2)                                   29.8%    29.0%

Cost to connect (note 3)                       USD 139  USD 120


(1)   before goodwill amortisation and exceptional items

(2)   ARPU and churn information represents the twelve month
periods ended 30 September 2002 and 31 March 2002,
respectively

(3)   comparative restated by Verizon Wireless to be on a basis
consistent with the current period

Verizon Wireless

Verizon Wireless operates in a highly competitive market place,
which currently consists of six nationwide competitors  and
several  regional  and  smaller  rural  carriers,  and  has
retained    its    position   as   the    leading    mobile
telecommunications provider in the United States  in  terms
of  number  of  customers, network coverage  and  revenues.
Difficult  economic conditions in the US have  resulted  in
net  customer growth slowing considerably from prior years.
Nevertheless,  Verizon Wireless has  continued  its  strong
growth  in customer net additions for the last two quarters
due to successful marketing campaigns.

The increase in proportionate turnover for the period is primarily
due  to  increased service revenue from the larger customer
base, as well as additional handset sales for both upgrades
and   gross  additions.  The  proportionate  EBITDA  margin
decreased  slightly as a result of higher  retention  costs
and   higher  acquisition  costs.  Statutory  total   Group
operating  profit,  before goodwill and exceptional  items,
decreased primarily due to a 43% higher depreciation charge
resulting  from  increased capital  expenditure  to  handle
increased  usage  resulting from  bundled  tariffs  and  to
improve  network  capacity  in spectrum-constrained  areas.
The  results  for  the  period were also  impacted  by  the
relative  strength  of  sterling  against  the  US  Dollar.
Proportionate  turnover and proportionate EBITDA  in  local
currency grew by 9% and 6%, respectively.

At 30 September 2002 Verizon Wireless' total customer base stood
at  31,521,000.   Approximately 94% of  customers  were  on
contract  plans  and there were approximately  1.5  million
data users, the majority of whom were Mobile Web customers.
SMS  usage  has grown significantly in the last six  months
due to the launch of inter-carrier interoperability earlier
this  year.   However, competitive pressures  have  had  an
unfavourable impact on ARPU with competitors'  tariffs  now
incorporating  large numbers of bundled  minutes  and  have
resulted  in  increased  cost  to  connect  through  higher
handset subsidies and higher trade commissions. The  period
has  also  seen Verizon Wireless continue to roll  out  its
CDMA 1XRTT network and extend total coverage to 172 million
people,  representing 75% of the Verizon Wireless  national
footprint.

Verizon Wireless has USD 261 million on deposit with the Federal
Communications Commission ('FCC') representing 15%  of  the
payment made in relation to the re-auction of licences  for
1.9GHz  spectrum ('Auction 35').  On 12 September, the  FCC
issued a public notice seeking comment on either dismissing
pending  applications  or allowing bidders  to  opt-out  of
Auction  35.  Verizon Wireless and most of the  other  high
bidders  are  urging the FCC to make a timely  decision  on
this   matter.   Verizon  Wireless  believe  that  to  meet
expected usage demands in its most densely populated areas,
they  will  require extra spectrum in the next eighteen  to
thirty months.

Other Americas

Grupo Iusacell increased its customer base from 1,995,000 at the
beginning of the period to 2,176,000 at 30 September  2002.
This  9%  increase  is primarily due to growth  in  prepaid
customer  numbers  within a consolidating and  increasingly
competitive  market.   However, Grupo Iusacell  experienced
erosion  of higher value contract customers and an increase
in  the number of inactive prepaid customers, resulting  in
declines  in  both ARPU and EBITDA.  Strategic  initiatives
are  being implemented to improve performance including the
appointment  of  a  new chief executive officer,  headcount
reductions and an internal reorganisation.

In August 2002, the sale of two Globalstar service provider
companies,  Globalstar  USA and Globalstar  Caribbean,  was
finalised.  Efforts  to sell the last remaining  Globalstar
service provider, Globalstar de Mexico, are continuing.

ASIA PACIFIC

Financial highlights                            Six months to
                                                 30 September
                                               2002       2001  Increase
                                                 #m         #m         %

Statutory turnover       - Japan              3,731          -         -
                         - Other Asia
                           Pacific              395        366         8
                                             ------     ------
                                              4,126        366         -
                                             ------     ------

Statutory total Group    - Japan                696        167       317
operating profit         - Other Asia
(note 1)                   Pacific               38         18       111
                                             ------     ------
                                                734        185       297
                                             ------     ------

Proportionate turnover   - Japan              2,602      2,018        29
                         - Other Asia
                           Pacific              553        499        11
                                             ------     ------
                                              3,155      2,517        25
                                             ------     ------

Proportionate EBITDA     - Japan                833        413       102
(before exceptional      - Other Asia
items)                     Pacific              209        154        36
                                             ------     ------
                                              1,042        567        84
                                             ------     ------

Proportionate EBITDA     - Japan              32.0%      20.5%
Margin                   - Other Asia
                           Pacific            37.8%      30.9%

Key performance
indicators (Japan only)

ARPU (note 2)                                   Yen        Yen
                                             89,193     91,903

Churn (note 2)                                23.8%      25.6%

Cost to connect (note 3)                        Yen        Yen
                                             31,540     34,145


(1)before goodwill amortisation and exceptional items

(2)   ARPU and churn information represents the twelve month
periods ended 30 September 2002 and 31 March 2002,
respectively

(3)   Cost to connect information represents the six month period
ended 30 September 2002 and the twelve month period ended 31
March 2002

Japan

Proportionate  turnover  for  J-Phone  Vodafone   increased
significantly from the comparative period, and  includes  a
full  period effect of the stake increases that took  place
during the last financial year.  The increase also reflects
strong  customer growth, together with the  success  of  J-
Phone  Vodafone's data and content product offerings.   The
results  of  J-Phone  Vodafone were not fully  consolidated
until 12 October 2001.

Penetration in the Japanese cellular market reached 57% by the end
of  September  2002, representing growth  of  2%  over  the
period.  Notwithstanding the slowdown in market growth,  J-
Phone Vodafone consistently captured a higher percentage of
net customer additions in each month in the period compared
to  its  cumulative  market  share.  This  can  largely  be
attributed  to the strength of the brand and the popularity
of  camera  and internet enabled handsets. Furthermore,  J-
Phone  Vodafone  is  using an attractive  mix  of  handsets
combined  with  innovative services to attract  and  retain
customers,  which  has  contributed  to  the  reduction  in
customer churn.

J-Phone Vodafone enjoys the highest ARPU of any company within the
Vodafone Group and the success of data and content products
resulted  in  further increases in data and  SMS  revenues,
which  exceeded  20%  of  service revenues  in  August  and
September  2002. However, the positive effect this  had  on
ARPU  was more than offset by the expected decline in voice
ARPU.

Total average cost to connect decreased following a reduction in
acquisition   incentives  and  more  cost   efficient   and
effective  purchasing  of handsets.  Additionally,  J-Phone
Vodafone  made savings on operating costs which contributed
to  significant growth in EBITDA.  As a result, the  mobile
EBITDA margin increased from 20.5% to 32.0%.

J-Phone  Vodafone realised substantial capital  expenditure
efficiencies during the period as a result of the merger of
J-Phone   Vodafone's  operating  companies  and  from   the
improved purchasing position it enjoys as a member  of  the
Vodafone  Group.   These efficiency gains have  enabled  J-
Phone Vodafone to concentrate its capital expenditure on 3G
infrastructure  and  pursue  a faster  and  more  efficient
rollout  of  its  3G network as it prepares for  commercial
launch in December 2002.

Other Asia Pacific

In Australia, an extremely competitive and maturing market, EBITDA
increased  by  14%  due to a continued focus  on  improving
operational  efficiency and a change in  product  marketing
and  distribution strategy.  Cost base rationalisation  has
continued  over  the  last  six months  with  restructuring
activities   reducing  the  workforce  by   12%.    Handset
subsidies  have also been phased out on plans  targeted  at
retail customers.

Over the last six months, Australia experienced an initial decline
in  blended  ARPU due to the increase in the proportion  of
lower  spending prepaid customers.  However, contract  ARPU
is now stabilising with an increasing trend in SMS and data
revenue.

In the six months to 30 September 2002 Vodafone New Zealand
increased  its EBITDA by 34%, revenues by 18%  and  blended
ARPU by over 2%.

China Mobile (Hong Kong) Limited ('China Mobile') saw monthly
customer  growth slow between June 2002 and September  2002
due  to  seasonal  effects and aggressive  marketing  by  a
competitor  that included bundled handset and tariff  plans
on its newly launched CDMA network.  However, excluding the
effect  of the acquisition referred to below, the  customer
base still grew by over ten million in the period.  Monthly
ARPU  continued to fall after showing signs of  stabilising
earlier  in the year as a result of lower tariffs aimed  at
retaining customers as competition increased.  SMS  volumes
continued  to grow substantially with 7.8 billion  messages
sent in the first quarter of the current financial year, up
from 4.8 billion in the prior quarter.

On 18 June 2002 Vodafone invested a further USD 750m in China
Mobile  and  obtained the right to appoint a  non-executive
director to the China Mobile board. Subsequently on 1  July
2002 China Mobile acquired from its parent eight provincial
cellular  operations with a total of 25,143,000  customers.
Vodafone's stake in China Mobile increased to approximately
3.27%  as  a  result  of these two transactions.   The  two
companies' strategic alliance has been further strengthened
in areas such as roaming, standards and best practice.

MIDDLE EAST AND AFRICA


Financial highlights                       Six months to
                                            30 September           Inc/
                                          2002        2001        (dec)
                                            #m          #m           %

Statutory turnover                         143         168         (15)

Statutory total Group
operating profit (note 1)                   88          83            6

Proportionate turnover                     238         252          (6)

Proportionate EBITDA                       109         108            1
(before exceptional items)

Proportionate EBITDA margin              45.8%       42.9%

(1) before goodwill amortisation and exceptional items

Vodafone Egypt reported significant customer growth during the
period of 261,000 to 1,979,000 at 30 September 2002.

In South Africa, Vodacom continued to grow strongly with a 23%
proportionate EBITDA improvement and customer growth of  9%
to   7,130,000.   Additionally,  Vodacom's   operation   in
Tanzania is now contributing a positive operating profit in
its second year of operation.

In Kenya, Safaricom consolidated its position as the largest
mobile  operator with 55% of the market as customer numbers
increased by 32% to 581,000 during the period.


OTHER OPERATIONS


Financial highlights                            Six months to
                                                 30 September
                                                                    Inc/
                                               2002       2001     (dec)
                                                 #m         #m         %

Statutory turnover       - Europe               441        466       (5)
                         - Asia Pacific       1,017          -         -
                                             ------     ------
                                              1,458        466       213
                                             ------     ------

Statutory total Group    - Europe              (94)      (181)         -
operating profit/(loss)  - Asia Pacific          59       (32)         -
(note 1)
                                             ------     ------
                                               (35)      (213)         -
                                             ------     ------

Proportionate turnover   - Europe               380        381         -
                         - Asia Pacific         678        453        50
                                             ------     ------
                                              1,058        834        27
                                             ------     ------

Proportionate EBITDA     - Europe               (2)       (32)         -
(before exceptional      - Asia Pacific         178         31       474
items)
                                             ------     ------
                                                176        (1)         -
                                             ------     ------


(1)   before goodwill amortisation and exceptional items


The Group's other operations mainly comprise interests in fixed
line  telecommunications  businesses,  including  Arcor  in
Germany,   Japan  Telecom,  Cegetel  in  France,   Vodafone
Information Systems, an IT and data services business based
in  Germany  and, until 29 August 2002, the  Vizzavi  joint
venture.

Statutory turnover for the Group's other operations increased
primarily  as  a  result of the stake  increases  in  Japan
Telecom  which  was  consolidated  from  12  October  2001.
Proportionate  EBITDA, before exceptional items,  increased
by  #177m  to  #176m, primarily through the impact  of  the
Group's   increased  interest  in  Japan  Telecom   and   a
substantial increase in its underlying EBITDA performance.

Arcor

Arcor provides fixed network services in Germany. The German fixed
line  market  remains intensely competitive although  Arcor
has  retained its position as the leading private  operator
and  the  strongest  competitor to  Deutsche  Telekom,  the
market  leader.  Turnover  from voice,  data  and  internet
businesses  increased  in the period compensating  for  the
reduction  in  carrier business caused by  the  competitive
market. During the period the contract voice customer  base
increased  by approximately 150,000 to 2,500,000 customers.
Total traffic volumes increased by 15% compared to the same
period in 2001 to 11.2 billion minutes.

In January 2002, a contract with Deutsche Bahn AG was signed to
carve  out  Arcor's railway specific telecommunication  and
service business into the company Arcor DB-Telematik  GmbH.
Following  completion  of  the  sale  in  April  2002,  the
remaining  50.1%  share of Telematik was sold  to  Deutsche
Bahn AG in July 2002.

Japan Telecom

Japan Telecom is the third largest fixed line telecommunications
operator  in Japan, offering both voice and data  services.
Since  Vodafone  gained  control  in  October  2001,  Japan
Telecom's  profitability has improved  significantly,  with
operating   profit,   before  goodwill   amortisation   and
exceptional  items,  of #59m for the six  months  ended  30
September  2002.   This can be largely  attributed  to  the
implementation of a transformation plan entitled Project V.
This  plan  specifically includes identifying the  products
and  services that will contribute the most to profit  both
now  and  in  the  future, increasing  focus  on  the  core
business,  and  an organisational re-alignment  to  improve
operating efficiencies and capabilities.

The fixed line market in Japan remains extremely competitive
following  the  lifting  of market entry  restrictions  and
although  the  carrier  designation service  'My-Line'  was
introduced  in  May 2001, the maintenance of  market  share
continues to be a challenge in the customer voice  segment.
The  main focus of the business in the period has  been  on
high  growth  business opportunities and  the  delivery  of
innovative  data  products  and  services.   The  corporate
customer base continues to expand due to the uptake  of  IP
data  related services, with the next-generation IP network
'PRISM',   using   optical   fibres,   being   particularly
successful.




                      This information is provided by RNS
            The company news service from the London Stock Exchange