Feeds

Vodafone takes £28bn hit

Warns of tough times ahead

New hybrid storage solutions

Vodafone expects to reduce the value of its assets by between £23bn and £28bn, it said, as its nears completion of its budget for next year.

Announcing the massive hit, the mobile phone giant said: "Vodafone now expects the outcome of this review of the carrying value of its assets will be a material impairment in the carrying value of goodwill in the range of £23bn to £28bn, reflecting a lower view of growth prospects, particularly in the medium to long term, than those it had used previously."

This, it said, was "against a backdrop of intensifying competition and pricing pressures in several of its key markets". Indeed, this increased competition has prompted Vodafone to lower its growth predictions for the next year, warning that EBITDA (earnings before interest etc) looks set to fall.

In a statement issued to the stock exchange, the firm said it expects mobile revenue growth will be slower than expected - in the range of five per cent to 6.5 per cent - thanks to increasing competition and regulatory reductions in termination rates.

By late this morning, shares in Vodafone had recovered after early falls but were still down 3.25p (2.78 per cent) at 113.75p. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
Shades of Mannesmann: Vodafone should buy T-Mobile US
Biting the bullet would let Blighty-based biz flip the bird at AT&T
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
Net neutrality fans' joy as '2.3 million email' flood hits US Congress
FCC invites opinions in CSV format, after Slowdown day 'success'
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.