Interim Management Statement for the Quarter ended 30 June 2011

News release - Group

 

Interim Management Statement for the Quarter ended 30 June 2011

22 July 2011


  • Group service revenue +1.5%(*), excluding mobile termination rate cuts +3.9%(*)
  • Strong service revenue growth in India +16.8%(*), Turkey +32.1%(*) and Vodacom +7.8%(*); resilient performance from Germany +0.2%(*) and UK +1.7%(*)
  • Conditions in southern Europe remain challenging: Italy -1.5%(*), Spain deteriorating to -9.9%(*) due to price reductions
  • Group data revenue +24.5%(*) at £1.5 billion; Europe smartphone penetration 19.5% (Q1 FY11: 13.6%)
  • £1.3 billion free cash flow after continued capital investment, supports dividend target
  • Net debt reduced to £23.1 billion following receipt of £6.8 billion SFR disposal proceeds; £4.0 billion share buyback started, 10% complete(1)
  • Polkomtel sale announced; agreed terms to buy a further 33% stake in Vodafone Essar Limited
  • Full year outlook confirmed
    Change year on year
  Quarter ended 30 June 2011 Reported Organic
  £m % %
Group revenue 11,659 +3.5 +2.3
Group service revenue 10,858 +2.6 +1.5
Europe 7,607 +1.2 (1.3)
Africa, Middle East and Asia Pacific 3,159 +5.8 +8.7
Capital expenditure 1,207 +15.9  
Free cash flow 1,255 (29.0)  

Vittorio Colao, Chief Executive, commented
“We have made a good start to the year, reporting robust results despite challenging macroeconomic conditions across southern European economies and the impact of cuts to mobile termination rates. Revenue from our key focus areas of data, enterprise and emerging markets continues to grow strongly. With our broad geographical mix and improving market positions, we are well placed for the rest of the financial year.”

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