Strong sig­nals from Voda­fone as com­pany re­ports half-year profit

Yorkshire Post - - BUSINESS -

SHARES IN Voda­fone have surged af­ter the tele­coms gi­ant swung to a half-year profit and upped its growth out­look de­spite pres­sures in its In­dia busi­ness.

The firm was up 4 per cent in trad­ing on the London Stock Ex­change, af­ter it recorded a 1.2 bil­lion euro (£1.1bn) profit for the six months end­ing in Septem­ber, up from a 5 bil­lion euro (£4.5bn) loss over the pe­riod last year.

The ma­jor boost came af­ter the group booked a 5 bil­lion euro (£4.5bn) charge linked to its In­dian op­er­a­tion dur­ing the six­month pe­riod in 2016.

In a dou­ble dose of cheer, Voda­fone also hiked its full-year earn­ings growth tar­gets from be­tween 4 per cent and 8 per cent to around 10 per cent

It means the com­pany is ex­pect­ing an­nual earn­ings of be­tween 14.75 bil­lion eu­ros (£13.15bn) and 14.95 bil­lion eu­ros (£13.33bn).

Group chief ex­ec­u­tive Vit­to­rio Co­lao said com­pe­ti­tion in the In­dia mar­ket was “in­tense”, but the group had “main­tained good com­mer­cial mo­men­tum”.

He said yes­ter­day: “Rev­enue grew or­gan­i­cally in the ma­jor­ity of our mar­kets driven by mo­bile data and our con­tin­ued suc­cess as Europe’s fastest grow­ing broad­band provider.”

He added: “Enterprise rev­enues con­tinue to grow, led by our In­ter­net of Things (IoT), Cloud and Fixed ser­vices, and for the sec­ond year run­ning we achieved an ab­so­lute re­duc­tion in our op­er­at­ing costs.”

De­spite the prof­its swing, group rev­enue slipped 4.1 per cent to 23.08 bil­lion eu­ros (£20.58bn) fol­low­ing the con­sol­i­da­tion of its Voda­fone Netherlands busi­ness and the cre­ationofjointven­tureVoda­foneZiggo.

PIC­TURE: MATT ALEXAN­DER/PA WIRE

GROWTH BOOST: Chief ex­ec­u­tive Vit­to­rio Co­lao said the group had main­tained good com­mer­cial mo­men­tum.

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