Vodafone reports annual revenue increase of 15%

Mobile network operator Vodafone announced a revenue increase of 15% when the company released its annual financial results for the year ended March 2009. The company reported total revenue of GBP41.0 billion for the financial year.

The company said in Europe revenue grew by 13.6 percent while in Africa and Central Europe it grew by 11.2 percent, with 32.3 percent growth in the Asia Pacific and Middle East region.

Vittorio Colao, Vodafone chief executive officer, said the results were evidence of successful strategies during the current negative global financial environment, not least f which was a £1 billion cost-cutting initiative.

Says Colao: “These results demonstrate the impact of the early actions we took to address the current economic conditions and highlight the benefits of our geographic diversity. The business continues to generate cash strongly and we have made good progress in implementing the strategy announced in November,”

“Data revenue grew to £3 billion for the year and our broadband and enterprise businesses continue to perform well. Our £1 billion cost reduction programme is ahead of plan and we continue to explore further ways to reduce cost. We maintain our tight focus on capital discipline and returns to shareholders.”

The company said it was optimistic about growth forecasts for Africa and other emerging markets in the short to medium term, but that the outlook for Europe was not as good.

“In Europe and Central Europe, recent significant declines in GDP and continued competitive intensity will make operating conditions challenging in the 2010 financial year. In these markets, the Group expects that voice and messaging revenue trends will continue as a result of ongoing pricing pressures and slowing usage growth. However, further growth in data revenue is expected,”

“In Turkey, the Group expects that the 2010 financial year will be challenging. Revenue growth in other emerging markets, in particular India and Africa, is expected to continue as the Group drives penetration in these markets. The Group expects another year of good performance at Verizon Wireless,” the company said.

— Mpendulo Ngwenya