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Vodafone posts 2.3% drop in Q1 revenue but maintains FY guidance

By BFN News | 07:25 AM | Friday 26 July, 2019


Vodafone reported a 2.3% drop in first-quarter group revenue, which it attributed to foreign exchange rate effects, but remained confident on its full-year earnings guidance. Group revenue fell to €10.653bn for the first quarter ending 30 June while organic service revenue declined 0.2% to €8.994bn. However, service revenues declines in Europe - due to increased competition - were less steep than the previous quarter, the company said, as improving market conditions in Italy and robust retail growth in Germany offset the impact of competitor promotions in Spain. Service revenues in Europe fell 1.7% (down 2.1% in the fourth quarter) to €6.782bn. However, they grew 5.3% in the Rest of the World segment as the impact of regulation introduced in March in South Africa was offset by strong growth ahead of inflation in other markets. The company said it expected to see full-year EBITDA of €13.8-14.2bn and free cash flow of 'at least' €5.4bn. This guidance excluded the Liberty Global acquisition (due to complete by 31 July), but included New Zealand. The NZ$3.4bn New Zealand disposal was expected to complete by 31 July. Vodafone said it planned to update its guidance at its interim results in November. 'Our service revenue growth improved during the first quarter, led by Italy, and mobile churn fell to another record low. Following a significant quarter of commercial activity, we expect the gradual recovery in our service revenues to continue, underpinning our financial outlook for the year.' said group chief executive Nick Read. Story provided by StockMarketWire.com

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