Feeds

Vodafone loss narrows

A mere £9.8bn

  • alert
  • submit to reddit

Build a business case: developing custom apps

Mobile phone behemoth Vodafone posted better than expected full-year results on Tuesday, although its loss still totalled £9.8 billion.

The full-year loss for the world's largest mobile phone company was a substantial improvement over 2002, when its full-year loss totalled £16.2 billion. For the year ended 31 March, turnover across the group jumped 33 per cent to £30.4 billion, and data services made a substantial contribution to this figure, rising 73 pe rcent to £3.6 billion.

Vodafone, whose name comes from the idea of sending both "voice" and "data" by phone, is hopeful that data will play an increasing role in boosting profitability during 2004. In the coming year, the company said that data service revenues are expected to exceed 20 percent of mobile service revenues, up from around 15 percent today.

Importantly, Vodafone announced no plans to write down its investment in 3G licences, for which it paid a hefty £14 billion. Last week rival mobile firm mmO2 said it would write down the value of its licences by some £5.9 billion. But Vodafone did take a massive £14 billion charge for goodwill amortisation, due mostly to the falling value of acquisitions it has made. Before the goodwill charge, Vodafone made a pre-tax profit on ordinary activities of £8.4 billion for the year, up from STG6.2 billion last year.

The company said that its 3G rollout plans were going "according to plan" in Europe, where technical testing is underway. But it said that the availability of suitable handsets is still a problem, and supplies would be limited until 2004. Vodafone said it expects 3G services to be available to customers "before the end of the 2004 financial year."

Across the group Vodafone now has around 120 million customers, showing organic growth of 11 percent over last year. In Ireland the company had 1.73 million customers at the end of 2002 and added another net 11,000 customers this year, to give the company 1.74 million Irish customers at the end of March. Average revenue per user among its Irish customer base continues to be among the highest across the Vodafone group, at €553, second only to subscribers in Japan.

Vodafone is currently in negotiations to sell its stake in the fixed-line business of Japan Telecom Holdings to Ripplewood Holdings of the US. According to media reports on Monday the deal is expected to fetch the company some USD2.2 billion; Vodafone CEO Chris Gent said on Tuesday that talks were ongoing with Ripplewood but that a deal is not yet complete. A deal may not be finalised before July, when Gent retires, to be replaced by Arun Sarin.

Also on Tuesday, Vodafone's Japanese mobile subsidiary J-Phone said it would drop its name and change to Vodafone. J-Phone, which has 14 million customers, said the rebranding should be complete by October. © ENN

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Trans-Pacific: Google spaffs cash on FAST undersea packet-flinging
One of 6 backers for new 60 Tbps cable to hook US to Japan
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.