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Vodafone holds dividend steady as earnings rise; sees weaker performance this year

By BFN News | 07:29 AM | Tuesday 12 May, 2020


Telecom giant Vodafone booked a narrower annual loss and a modest rise in adjusted earnings in line with its guidance, though it warned of a weaker performance in the current financial year, citing the Covid-19 crisis. Net losses for the year through March amounted to €455m, compared to losses of €7.64bn on-year, when the company booked higher writedowns and a loss on discontinued Indian operations. Revenue rose 3% to €44.97bn and adjusted earnings before interest, tax, depreciation and amortisation rose 2.6% to €14.88bn. Vodafone held its annual dividend steady at 9c per share. 'The economic impact of the Covid-19 pandemic in our markets, whilst uncertain, is likely to be significant,' Vodafone said. 'Whilst our business model is more resilient than many others, we are not immune to the challenges.' Vodafone said uncertainties about the impact of the crisis meant it could not give guidance for operating earnings this year. However, based on current assessments of the economic outlook, it said adjusted EBITDA may be 'flat to slightly down, compared to a re-based 2020 financial year baseline of €14.5bn'. Chief executive Nick Read said the company had delivered a 'good' financial performance while executing on its strategic priorities. 'We have also continued to invest in our fixed and mobile Gigabit network infrastructure and digital services, to provide faster speeds for our customers, as well as successfully managing the recent surges in demand,' Read said. 'The services Vodafone provides are more important than ever and we are committed to playing a key role in society's recovery to the "new normal"'. Story provided by StockMarketWire.com

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