Asia show powers Vodafone profit

LONDON: Vodafone Group, the world’s largest mobile telephone company, saw its full-year profit more than double as strong growth in Asia helped offset declines elsewhere, the company said on Tuesday.

The company said net profit in the year ended March 31 was 8.65 billion pounds ($12.5 billion) compared to 3.08 billion pounds a year earlier, while revenue rose 8.4% to 44.5 billion pounds.

Despite the solid increase in overall sales, there was a big disparity among regions. While revenue fell 3.5 percent in Europe and 1.2 percent in Africa and central Europe, Asia Pacific Middle East income swelled 9.8 percent — India led the way with a 14.7% increase in service revenue. For the fourth quarter alone, revenue was up 5 percent to 10.5 billion pounds. Vodafone did not break out quarterly earnings.

Elsewhere, Vodafone said Verizon Wireless, the US joint venture with Verizon Communications in which Vodafone has a 45% stake, registered a 6% increase in full-year revenue. Vodafone shares were up 2% at 139.1 pence on the London Stock Exchange. “Vodafone’s financial results exceeded our upgraded guidance on all measures,’’ chief executive Vittorio Colao said.

“Revenue trends have improved again in Q4 driven by growth in mobile data and fixed broadband. Cost reduction targets were delivered ahead of schedule enabling commercial reinvestment to improve market share and further strengthen our technology platforms.’’

Colao also said the company is now generating a third of its revenue from services other than mobile voice communications.

Full year earnings were boosted by a reduction in one-time impairment losses from £5.9 billion to £2.1 billion; further gains came from a sharp fall in income tax from £1.1 billion to £56 million , and a reduction in finance costs.

Vodafone said it expected adjusted operating profit in the current year to be between £11.2 billion and £12 billion, compared to £11.5 billion in the recent fiscal year.