NEWBURY (dpa-AFX) - British telecom giant Vodafone Group Plc (VOD, VOD.L) Tuesday reported a sharp decline in the fiscal 2013 profit, impacted by hefty impairment charges and lower revenues. The company said it experienced continued tough economic conditions, particularly in Southern Europe, and an adverse European regulatory environment.
However, Verizon Wireless, its 45 percent-owned associate in the US, continued to achieve strong growth in revenue, EBITDA, cash flow and market share. In addition, Vodafone said its new targets for high speed mobile network coverage announced today, combined with its next generation fixed line access, strengthens its 2015 strategy.
For the fiscal ended March 31, 2013, the company posted profit before tax of 3.26 billion pounds or $4.97 billion, sharply lower than 9.55 billion pounds in the previous year.
In the second half of the year, the company recorded impairment charge of 1.8 billion pounds, which resulted in a full-year total of 7.7 billion pounds related to the firm's business in Italy and Spain.
On a per share basis, earnings were 0.87 pence, compared to 13.65 pence per share reported last year. Adjusted basic earnings per share were recorded at 15.65 pence.
Annual revenues declined 4.2 percent to 44.45 billion pounds. Organic service revenue decline was 1.4 percent. Group service revenue fell 4.5 percent to 40.94 billion pounds.
In Northern and Central Europe, service revenue improved 2.8 percent, while Southern Europe, and Africa, Middle East and Asia Pacific recorded a service revenue fall of 16.7 and 3.2 percent, respectively.
Verizon Wireless service revenue grew 8.1 percent from last year. Vodafone's share of profits from Verizon Wireless climbed 30.5 percent to 6.4 billion pounds.
The company's total mobile customers, including Verizon Wireless, as of March 31, 2013, were 448.39 million, slightly better than 447.52 million as of January 1, 2013. Net additions during the period were 1.21 million.
The board has recommended a final dividend of 6.92 pence per share, to shareholders of record on June 14, 2013, payable on August 7. This will make the total dividends per share for the year of 10.19 pence, up 7.0 percent fro a year earlier.
Looking ahead to fiscal 2014, the company expects adjusted operating profit to be in the range of 12.0 billion pounds to 12.8 billion pounds. Adjusted operating profit for fiscal 2013 was 11.96 billion pounds.
In London, Vodafone shares are currently trading at 198.2 pence, up 0.6 pence or 0.3 percent, on a volume of 12.55 million shares. In US, VOD closed Monday's regular trading at $30.10 on the Nasdaq.
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© 2013 AFX News
