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Vodafone sticks to earnings guidance even as revenue slips

By BFN News | 07:07 AM | Wednesday 03 February, 2021

Telecom company Vodafone reported a 4.1% fall in third-quarter revenue, pinned on lower international roaming due to the pandemic, but stuck to its annual earnings guidance. Revenue for the three months through December decreased to €11.20 billion, down from €11.75 billion year-on-year. Services revenue, a closely watched measure, fell 3.9% to €9.36 billion, but rose 0.4% on an 'organic' basis. Customers aren't spending as much on global roaming due to travel restrictions designed to prevent the spread of Covid-19. Vodafone said its underlying trends, excluding the impact from lower roaming and visitors, were broadly similar quarter-on-quarter. It reaffirmed guidance for the full year of adjusted earnings before interest, tax, depreciation and amortisation of between €14.4 billion and €14.6 billion and free cash flow of at least €5 billion. 'I am pleased the group returned to service revenue growth in the third quarter as a result of the continued commercial momentum across our business, including our largest market Germany,' chief executive Nick Read said. 'Our good trading performance underscores our confidence in the outlook for the full year.' 'Our networks have successfully delivered another quarter of record data traffic as many countries continue to endure Covid-19 lockdowns and customers depend on our services.' 'We have achieved this while further reducing our carbon footprint and we are making fast progress towards our important target of having our European networks wholly powered by renewable electricity by July this year.' Story provided by

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