Phone-y war

21 May 2013 By Quentin Webb

Analysts expected little from the mobile giant’s results. They got it. EBITDA is under pressure, an annual dividend increase is gone, and Southern Europe is hurting badly. The main driver of the share price remains hopes of action at U.S. joint venture Verizon Wireless.

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On May 21, Vodafone Group Plc said revenue for the year ending March 31 fell 4.2 percent to 44.4 billion pounds. Adjusted operating profit rose 9.3 percent to 12 billion pounds, ahead of consensus estimates. Shares in Vodafone rose 0.08 percent by 0858 GMT to 197.75 pence.
For the fourth quarter, organic service revenue, the group’s preferred measure of top-line performance, fell 4.2 percent. That was the steepest fall since Vodafone introduced the metric in 2003. After three years of 7 percent annual dividend increases, Vodafone said it now planned “at least to maintain” the payout at current levels.
Chief Executive Vittorio Colao told reporters he had nothing new to report about the possible sale of Vodafone’s 45 percent stake in Verizon Wireless, which could be worth $120 billion. Joint venture partner Verizon Communications has stepped up pressure for a deal recently, saying it believed a buyout could be done without triggering a huge capital gains tax bill.

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