Vodafone experiences annual losses of €6.1bn
Vodafone has reported losses of €6.1bn for year-end 31 March. The losses were largely driven by the Indian unit which the company is spinning off.
The poor performance was affected by a tax impairment of €3.7bn in its Indian operations.
Total revenue at the British-based multinational was €47.6bn, down 4.4pc year-on-year, which the company said was largely driven by foreign exchange movements.
Meanwhile the company’s adjusted earnings before interest, taxation, depreciation, and amortisation was flat at €14.1bn.
The world’s second largest mobile telecoms operator has said that it expects adjusted growth of between 4pc and 8pc, and free cash flow of around €5bn in its 2018 financial guidance.
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“We expect to sustain our momentum in the coming financial year, generating free cash flow of around €5bn. Our confidence in the outlook is demonstrated by another 2pc increase in our dividend,” Vittorio Colao, ceo of Vodafone, said.
In Europe the company continued to perform strongly with it’s organic adjusted earnings before interest, taxation, depreciation, and amortisation growing 3.1pc to €10.3bn.
In March this year Vodafone announced an agreement to combine its subsidiary Vodafone India with Idea Cellular. Because of this Vodafone India has been classified as discontinued operations for group reporting purposes.