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Q1-16: Vodafone bags £41b

Vodafone has announced its revenue grew by £41.0 billion for the first-quarter, according to results announced for the year ended 31 March 2016.

Highlights:

• Group organic total revenue grew 2.3% to £41.0 billion; full year organic service revenue grew 1.5%

• Q4 organic service revenue grew 2.5%; stabilisation in Europe 0.5%, AMAP accelerated to 8.1%

• Q4 driven by underlying improvement, up 1.8% excluding adjustments primarily from a leap-year effect

• Organic EBITDA growth of 2.7% to £11.6 billion; H2 EBITDA up 3.6%

• EBITDA on a guidance basis £11.9 billion, upper end of £11.7 – £12.0 billion guidance range

• Free cash flow £1.0 billion, consistent with ‘positive’ guidance; capital expenditure £8.6 billion, down 6.5%

• Net debt of £29.2 billion, up 31.0% impacted by spectrum acquisitions and foreign exchange movements

• Final dividend per share of 7.77 pence, up 2.0%, giving total dividends per share of 11.45 pence

Commenting on the results, Group Chief Executive, Vittorio Colao, said: “This has been a year of strong execution for the Group, returning to organic growth in both revenue and EBITDA for the first time since 2008. We achieved the first-quarter of positive revenue growth in Europe since December 2010 while growth in AMAP accelerated with strong performance in South Africa, Turkey and Egypt. EBITDA margins also grew year-on-year, supported by our cost efficiency programmes.”
“We have now successfully concluded our Project Spring organic investment programme. This has transformed the quality of our technology, enhancing our customers’ experience and enabling us to expand our Enterprise services. We are pleased to be the leader or co-leader in mobile network quality tests and Net Promoter Scores in the majority of our markets. We have also posted a record quarter of net additions in fixed as our convergence strategy continues to accelerate.

“Looking forward, we will continue to invest in our customer excellence programmes in both mobile and converged services. I am confident we will sustain our positive momentum in the coming year, allowing us to maintain attractive returns for our shareholders,” Colao added.

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