Vodafone posted the largest fall in main revenue, forcing it to keep a dividend from its U.S. arm to compensate for a drop in southern Europe. Rapid growth in Verizon, a solid performance in emerging markets and cost cuts however helped the group to offset some of the weakness and report slightly better than expected profit and earnings per share. Vodafone will keep its dividend payment from Verizon rather than returning it to shareholders.
Vodafone had a 4.2 percent quarterly fall in organic service revenue, broadly in line with forecasts but much worse than the 2.6 percent it recorded in the third quarter and the largest drop (quarterly) since the company started using this in 2003. In Italy service revenue fell 12.8 percent, while in Spain revenue fell 11.5 percent. The group also took a 1.8 billion pounds impairment charge on its Italian business, taking the total writedowns for Spain and Italy for the year to 7.7 billion pounds. Full year margins on core earnings were down 0.5 percentage points on an organic basis to 29.9 percent. Its adjusted operating profit was above guidance, up 9.3 percent to 12 billion pounds
$1 = 0.6570 pounds