Vodafone full-year profit up 37%, helped by weak pound

Vodafone full-year profit up 37%, helped by weak pound
AP
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First Published: Tue, May 19 2009. 05 13 PM IST
Updated: Tue, May 19 2009. 05 13 PM IST
London: Vodafone Group PLC, the world’s biggest mobile phone company by sales, on Tuesday posted a 37% gain in full-year profit, helped by the fall in the pound’s value, but warned that it won’t repeat that strong performance this year.
For the year ending 31 March, Vodafone said its net profit was £9.06 billion ($14 billion) compared to £6.6 billion a year earlier. Revenue rose 16% to £41 billion.
The depreciation of the pound against the euro helped the bottom line, the company said. Every 1% change in the euro-pound exchange rate translates to a £70 million change in operating profit, Vodafone said.
Adjusted operating proft (before tax) was £11.8 billion, up 17%, but Vodafone said it expected that figure to be no higher in the current year, and perhaps as low as £11 billion.
“In Europe and central Europe, operating conditions will be challenging in the 2010 financial year,” the company said. “IMF forecasts indicate a GDP decline of 4% in 2009 across the Vodafone footprint within Europe and Central Europe and that unemployment could increase significantly.”
Vodafone said full-year revenue was up in all regions: 32% in Asia Pacific and Middle East, 14% in Europe and 11% in Africa and central Europe.
The company’s shares were up 0.6% at 128.2 pence on the London Stock Exchange.
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First Published: Tue, May 19 2009. 05 13 PM IST
More Topics: Company Results | Vodafone | Profit | Revenue | Sales |