India-gestion

18 May 2010 By Una Galani Follow @ugalani

The telco giant has softened a 2.3 bln pounds writedown in India with a pledge to lift the annual dividend by 7 pct for three years. But the raised payout isn’t that impressive against peers. And it is poor compensation for the mounting problems in Vodafone’s key growth market.

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Vodafone announced a more generous dividend policy after posting annual results including a 2.3 billion pound writedown on its Indian business.

The world's largest mobile operator said the charge refleted fierce competition and higherthanexpected costs in the ongoing auction for Indian thirdgeneration licences.

Vodafone forecast free cash flow will be between 6 billion pounds and 7 billion pounds in each year until March 2013 and is targeting a 7 percent per annum dividend increase for each of those financial years.

Revenue was 44.5 billion pounds and EBITDA 14.7 billion for the year ending in March, in line with expectations. Free cash flow grew 26.5 percent during the year to 7.2 billion pounds.

Vodafone shares traded broadly flat at 136 pence after the announcement.

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