Vodafone forecasts profit pick up as revenues start to turn

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Vodafone PLC (LON:VOD) grew user revenues again in the second half of its latest financial year even with the impact on roaming income caused by coronavirus travel restrictions.

For the current year, Vodafone also said it also forecast adjusted profits to rise by at least 4% to a range of between €15-15.4bn.

The mobile phone giant saw revenues overall drop by 2.6% to €43.8bn in the year to end-March, 2021 but at an organic level there was an 0.8% rise in the fourth quarter which was ahead of market forecasts.

Underlying profits fell to €14.4bn from €14.9bn, while net debt dropped to €40.5bn following the sale of a stake in the Vantage Towers mobile masts business.

The dividend for the year was held at 9c and Nick Read, chief executive, said the company had a firm commitment to it.

Read added that he was pleased with the accelerating service revenue growth across the business, with a particularly good performance in Germany, its largest market.

The group had also now completed the first phase of its strategy to reshape Vodafone as a stronger connectivity provider, he said.

“The pandemic has shown how critical connectivity and digital services are to society.

“Our digital transformation initiatives have generated savings of €0.5bn over the year and the integration of the assets acquired from Liberty Global is well ahead of plan.”

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