Vodafone group’s strong results in Q3 2010

Vodafone has just released their 2010 4th quarter results. As a summary, fifth successive quarter of service revenue growth improvement, with strong results from India, Turkey, the UK and Vodacom. In addition, Verizon Wireless continues to show strong momentum. Overall performance has been driven by the effective execution of data services strategy across operations whilst delivering growth, particularly in emerging markets.

Focus is now put on implementing revenue growth strategies and stabilising EBITDA margins over the medium-term. This, together with our pursuit of liquidity and value from the Group’s non- controlled investments, is expected to drive enhanced free cash flow and returns for shareholders.


Further improvements in revenue growth

  • Group service revenue +2.5%(*), fifth sequential quarter of improvement – both regions delivered faster growth rates
  • Strong service revenue growth in India +16.7%(*), Turkey +31.7%(*), the UK +7.0%(*) and Vodacom +5.6%(*). Excluding termination rate cuts, growth was solid in Germany at +2.3%(*) (headline +1.1%(*)). Performance was stable in Italy with revenue growth of -1.4%(*). Conditions remain challenging in Spain at -7.4%(*)
  • Verizon Wireless service revenue +7.0%(*); strong customer and data growth. iPhone from February 2011
  • Underlying free cash flow generation remains strong
  • Outlook confirmed, with adjusted operating profit now expected to be towards the upper end of the £11.8 -£12.2 billion range before the impact of the Verizon Wireless iPhone launch

Progress against strategic priorities

  • Data: revenue +27.2%(*) led by higher smartphone penetration and data attach rates in Europe  European data pricing: tiered plans launched in eight markets. New smartphone roaming plans launched in November
  • Enterprise: improved trend with Europe service revenue +1.3%(*) and Vodafone Global Enterprise revenue up approximately 6%(*)
  • Total communications: fixed line revenue +4.7%(*), with fixed broadband customers +11.7%(*)
  • Shareholder returns: £1.1 billion of £2.8 billion share buy-back executed by the end of the quarter

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