Vodafone (Vodafone) is the world’s second largest mobile operator. On Monday, Vodafone fine-tuned its earnings outlook. The company said that although the impact of COVID-19 obscured its potential development momentum, it became more and more confident after showing “resilience” in the first half of the year.
As international travel was restricted by the pandemic, the British company was hit by the loss of roaming revenue, resulting in a 0.4% drop in group service revenue in the second quarter.
The company said that excluding roaming, service revenue increased by 1.5%, thanks to its European contract customer base increased to 65 million, broadband subscribers increased to 25.4 million, and unlimited data that accelerated tiering in 9 markets Move plan.
Chief Executive Nick Read (Nick Read) said that the results emphasized “enhanced confidence” in the prospects and showed progress in increasing customer loyalty, expanding its fixed broadband base, and effectively delivering 5G through network sharing.
He told reporters on Monday: “Overall, I am satisfied with the progress and performance of our plan.”
Vodafone set the adjusted annual core profit target for the year to the end of March as figures: 14.4 billion euros (approximately 1,269,900 crore) to 14.6 billion euros (approximately 1,28,600 crore), compared to 14.5 billion euros Euros (approximately 12.8 billion Euros) had revenues of 1,278,000 crore the previous year.
It has been said before that they will be “flat to a slight decline.” Analysts forecast 14.37 billion euros (about 1,267,700 crore).
The stock price rose 4% to 125 pence (about 100 rupees), the highest level since late July.
Vodafone, which plans to spin off its tower business in Frankfurt early next year, also confirmed its full-year free cash flow target of at least 5 billion euros (about 44 billion rupees), excluding Monday’s spectrum and restructuring costs.
Read said more details about the IPO plan will be provided to investors on Tuesday.
However, he said that Vodafone hopes to convert its shares in the CTIL joint venture with Telefonica into a spin-off.
He said: “We have done a lot of work with Tef (Telefonica), and our ultimate goal is to invest our shares in CTIL into Vantage Towers, preferably before the IPO.”
For the six months to the end of September, Vodafone reported adjusted earnings of 7 billion euros (approximately Rs 61,600 crore), a decrease of 1.9%, and group revenue fell 2.3% to 21.4 billion euros (approximately Rs 1,88,500 crore) . ).
© Thomson Reuters 2020
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