Vodafone posts ^7.8-bn loss for first half of 2018

NewDelhi, 13November

British telecom major Vodafone posted a loss of ^7.8 billion for the first half of 2018 because of a ^3.4-billion loss on the disposal of its Indian arm and impairment charges related to investments in Spain and Romania.

The company had posted a profit of ^1.2 billion in the same period of 2017.

"Six months ended September 30, includes ^3.5 billion of impairment charges in respect of the group's investments in Spain, Romania and Vodafone Idea and a ^3.4-billion loss on the disposal of Vodafone India," the company said.

Vodafone Idea now operates as merged entity with Aditya Birla Group's telecom arm Idea Cellular. The merger completed in August.

"Vodafone India has been excluded from the group figures for all periods up to 31 August, and the results of Vodafone Idea have been included in all group figures for all periods thereafter, unless otherwise stated," the British telecom firm said.

The group’s financial numbers included July-August performance of Vodafone India. The Indian arm registered ^955 million revenue from services during the two months.

Vodafone owns a 45.2 per cent stake in Vodafone Idea and Aditya Birla Group owns 26 per cent.

The revenue of the group declined by 5.5 per cent to ^ 2.17 billion at the end of the reported period, compared to ^2.3 billion it registered a year ago.

Vodafone said the market environment in India remains highly challenging, with significant pricing pressure, which has led to industry consolidation but a significantly lower level of profitability and greater pressure on financing.

"Management continues to consider it reasonable to assume an overall market and pricing recovery, however the timing and magnitude remains highly uncertain," it said.

The company had posted a profit of ^1.2 bn in the same period of 2017