Key highlights⁽¹⁾:

• Group revenue of £19.9 billion, an increase of 17.1%
• Europe: revenue up 14.3%, with outgoing voice usage up 11.6%
• EMAPA: revenue growth of 25.7%, reflecting the acquisition in India
• Group data revenue up 48.6% to £1.4 billion
• Group adjusted operating profit up by 10.5% to £5.8 billion
• Group EBITDA increased by 10.3% to £7.2 billion
• Verizon Wireless operating profit up 14.9% driven by 12.2% revenue growth⁽²⁾
• Free cash flow excluding licence and spectrum payments of £3.1 billion, up 15.9%
• European capital intensity of 8.4%⁽³⁾
• Net cash flow from operations of £6.1 billion
• Adjusted effective tax rate of 26.5% in first half; full year rate expected to be similar
• Adjusted earnings per share up by 17.1% to 7.52 pence. Basic earnings per share of 4.04 pence

Revised dividend policy:

• The Board has adopted a progressive dividend policy
• Interim dividend up by 3.2% to 2.57 pence per share

Updated outlook:

• Free cash flow outlook increased notwithstanding lower underlying trading expectations
• Revenue range of £38.8 billion to £39.7 billion, adjusted operating profit of £11.0 billion to £11.5 billion and free cash flow of £5.2 billion to £5.7 billion

Vittorio Colao, Chief Executive, commented:

“Vodafone has again delivered strong cash generation and we have raised free cash flow guidance despite the reduction in underlying expectations for trading. Our updated strategy reflects the changing economic and market conditions and it will drive execution with a continuing focus on free cash flow. We will improve operational performance through customer value enhancement and cost efficiency, supported by a £1 billion cost reduction programme. We will pursue growth opportunities in total communications, specifically mobile data, enterprise and broadband. In our emerging markets, the priority will be execution and we intend to further strengthen capital discipline. Vodafone has the right assets and strategy to ensure continuing leadership of the industry and to deliver attractive returns to shareholders.”

(1) See page 4 for Group financial highlights, page 33 for use of non-GAAP financial information and page 41 for definition of terms.
(2) Growth rates based on amounts in local currency.
(3) Including common functions.

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For further information:

Vodafone Group Plc

Investor Relations
Telephone: +44 (0)1635 664447
Facsimile: +44 (0)1635 682890

Media Relations
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