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Not for publication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 

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: +44 (0) 1635 664447

Telephone: +44 (0) 1635 664444



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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