Feeds

Vodafone's cash mountain rocked by eurozone emergency

Hung up on Italy, Spain, Portugal and Greece

Using blade systems to cut costs and sharpen efficiencies

Vodafone is rolling in cash thanks to a healthy year in the US and stability in the UK, Germany and the Netherlands. However the telco is still only drawing 14.5 per cent of its £43bn service revenue from mobile data, despite the fact that it represents the majority of traffic carried.

Total revenue across the group over the past 12 months was up a smidgen to £46.4bn ($73bn) and America's Verizon Wireless (of which Voda owns 45 per cent) provided a good chunk of that growth. India and Turkey also saw significant jumps (19.5 per cent and 25.1 per cent respectively) as those markets aren't yet at saturation point.

Elsewhere the growth was in data, as smartphone penetration continues to increase (26.9 per cent in Europe now), and that's driving customers towards contracts, which is good for Vodafone: contract customers always spend more money. Revenue from data hit £6.2bn, about £1bn more than the cash collected for text messages.

Profit for the year ending 31 March is expected to be somewhere between £11bn and £12bn, depending on how the euro fares in the next few months: although that figure is up 2.5 per cent year-on-year, it's 2.4 per cent lower when including currency changes.

Given the eurozone crisis, the operator felt it necessary to write down £4bn in value on its operations in Italy, Spain, Portugal and Greece where an uncertain future and EU regulation (such as the caps on roaming rates) threaten its coffers.

In the last year revenue from Italy tanked a little, dropping 8 per cent, while customers in Spain spent just under 2 per cent less than last year as their money begins to run out, but additional connections in the developing markets and a decent performance in the US more than offset that. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.