Margin for error

24 May 2005 By Mike Verdin

The group’s alert that margins may decline slightly this year takes the edge off its promise to increase revenues by 69%. Dividends and buybacks have been hiked again. But they will only grow along with earnings a product of good sales growth but soft margins.

This content is for Subscribers only

Context News

Vodafone announced that its ebitda margins had fallen by 0.4 percentage points to 39% in the year to the end of March, adding that the decline in the current financial year could reach 1 point.

The world's largest mobile telecoms operator also unveiled a doubling to 4.1p per share in its total dividend and a £4.5bn share buyback. However, the group said that dividends would, in future, rise in line with earnings.

Revenues were set to increase by 69%. Last year, revenues grew by 9% and customer numbers by 16.3m to 155m. Vodafone's net loss fell by 16% to £7.5bn with underlying ebitda up 11% at £16.6bn.

Vodafone also announced a £700m reduction in its dividend from Verizon Wireless, a US joint venture.

Email a friend

Please complete the form below.

Required fields *