adminEarnings after taxation nosedived to £673 million in the group’s financial year to the end of March, compared with £7,0 billion in 2011-2012, Vodafone said in a results statement.
Group revenues retreated 4,2 percent to £44,44 billion. Vodafone’s businesses in Italy and Spain have been hit hard by the impact of the ongoing eurozone sovereign debt crisis.
The company said that it took a second-half hit of £1,8 billion, taking its total impairment charge to £7,7 billion for Italy and Spain.
“We have faced headwinds from a combination of continued tough economic conditions, particularly in Southern Europe, and an adverse European regulatory environment,” said Vodafone chief executive Vittorio Colao in the statement.
He added: “The board remains focused on balancing ongoing shareholder remuneration with the long-term investment needs of the business, and going forward aims at least to maintain the ordinary dividend per share at current levels.”
Vodafone’s full-year shareholder dividend stood at 10,19 pence per share, up 7 percent from the previous year.
The company will meanwhile take a US$3,2 billion dividend from US company Verizon Wireless, in which Vodafone has a 45 percent stake.
In a conference call, Colao told reporters that Vodafone had “nothing new to announce” about its stake in Verizon Wireless, despite ongoing media speculation, and added that it was a “fantastic asset”.
Turning to the outlook, Vodafone forecast that adjusted operating profit would stand at between £12,0 billion-£12,8 billion in the current 2013-2014 financial year.
In morning deals, Vodafone’s share price firmed 0,05 percent to 197,70 pence on London’s FTSE 100 index of leading companies, which was 0,09 percent higher at 6 761,13 points.
“The situation in southern Europe remains one of disappointment,” noted analyst Richard Hunter at Hargreaves Lansdown Stockbrokers. — AFP.
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