Vodafone Q3 revenue down 7.7 percent

Jul 20, 2012

(AP) — Vodafone Group PLC, Europe's largest mobile phone company, said Friday that revenue fell by 7.7 percent in the three months ending June 30 compared with a year earlier as gains in emerging markets were offset by a patchy performance in Europe.

Adverse currency movements also dented as the 's performance fell short of market forecasts.

On an organic basis — that is, not counting acquisitions, disposals and currency swings — revenue rose 0.6 percent during the quarter. The company did not report profit figures in the trading update.

Vodafone shares were down 1.7 percent at 180 pence in morning trading in London.

"In addition to the previously announced writedown of its assets, the situation in southern Europe continues to be troublesome both in economic and competitive terms," said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.

However, Hunter said Vodafone's strong cash generation, geographical diversification and 5.2 percent dividend yield continued to make shares attractive.

In May, Vodafone announced a 4 billion pounds ($6.3 billion) writedown on the value of assets related to its businesses in Italy, Spain, Portugal and Greece.

The company said service revenue on an organic basis was up 16 percent in India and nearly 19 percent in Turkey. It was up 4.2 percent in Germany but down nearly 7.7 percent in Italy and down 10 percent in Spain.

Verizon Wireless, 's U.S. joint venture with Verizon Communications, reported an 8.2 percent increase in revenue on an organic basis and a 4.9 percent increase in customers compared with a year earlier.

Explore further: Nokia profits rise after sale of handset division

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Verizon 1st-qtr profit, revenue beat expectations

Apr 27, 2009

(AP) -- Verizon Communications Inc. said Monday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.

Texas Instruments lowers 4Q outlook

Dec 09, 2011

(AP) -- Semiconductor maker Texas Instruments Inc. lowered its outlook for its fourth-quarter revenue and profit on Thursday, saying demand had weakened for a variety of products that use its chips.

Vodafone buys out Essar from India unit for $5 bn

Jul 02, 2011

British mobile phone giant Vodafone is taking full control of its Indian joint venture by buying out its local partner Essar Group, a statement said Saturday, ending a troubled relationship.

Briefs: Vodafone to buy out Telsim for $4.55B

Dec 13, 2005

Vodafone said Tuesday it has agreed to buy out Telsim for $4.55 billion. Turkey's second-largest mobile carrier has been owned by the Turkish Savings Deposit and Investment Fund.

IPhone bills boost Verizon 1Q revenue growth

Apr 19, 2012

(AP) -- Holiday sales of the iPhone 4S started to boost revenue at Verizon Communications Inc. in the latest quarter, as subscribers settled in to paying their new monthly bills.

Recommended for you

Nokia profits rise after sale of handset division

3 hours ago

(AP)—Telecommunications and wireless equipment maker Nokia Corp. saw its shares surge on Thursday after it reported higher profits and an improved earnings outlook in the wake of its sale to Microsoft of its troubled handset ...

Swiss drug maker Roche posts 7 percent profit drop

6 hours ago

(AP)—Swiss drugmaker Roche Holding AG on Thursday posted a net profit drop of 7 percent compared with a year ago, weighed down by a strong Swiss franc and charges from one of its diagnostic units.

Cheaper wireless plans cut into AT&T 2Q profit

17 hours ago

(AP)—AT&T Inc. on Wednesday posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

Facebook 2Q earnings, revenue soar (Update)

17 hours ago

(AP)—Facebook is on a roll. The world's largest online social network posted sharply higher earnings on Wednesday as revenue from mobile advertising continued to grow, and more people used it, more often.

Android grabs more tablet market share

19 hours ago

Global sales of tablet computers edged higher in the second quarter, in the slowest growth since 2009, research firm Strategy Analytics said Wednesday.

User comments : 0