Key highlights⁽¹⁾:

• Group revenue of £21.8 billion, an increase of 9.3%; organic down 3.0%
  • Europe: revenue up 3.0% benefiting from foreign exchange
  • Africa and Central Europe: revenue growth of 35.9% including Vodacom acquisition
  • Asia Pacific and Middle East: revenue growth of 15.9% reflecting the performance in India
  • Group data revenue up 35.2% to £1.9 billion
• Group adjusted operating profit up 2.4% to £5.9 billion
  • Group EBITDA increased by 2.9% to £7.5 billion
  • Verizon Wireless operating profit up 34.3% driven by 48.1% revenue growth including Alltel
• Free cash flow before licence and spectrum payments of £4.0 billion, up 29.1%
  • Cash generated by operations of £7.6 billion, up 6.1%
• Adjusted effective tax rate of 21.5%; underlying full year rate expected to be in the mid 20s
• Adjusted earnings per share up 16.0% to 8.72 pence. Basic earnings per share of 9.17 pence
• Interim dividend up by 3.5% to 2.66 pence per share

Outlook⁽²⁾:

• Guidance confirmed
  • Adjusted operating profit in the range of £11.0 billion to £11.8 billion
  • Free cash flow before licence and spectrum payments around upper end of £6.0 billion to £6.5 billion range

Vittorio Colao, Chief Executive, commented:

“The Group has performed in line with our expectations and we have made strong progress with our strategic priorities, in particular in mobile data and cash generation. We have confirmed our guidance for the full year, despite the uncertainties of current economic trends. The £1 billion cost reduction programme is expected to be delivered a year ahead of plan and we have extended this to a further £1 billion of cost savings by 2012. At the same time, we have maintained our capital investment at £2.6 billion in the first half, delivering further improvements in network quality and performance for our customers. We have continued to develop innovative services for businesses and consumers, such as Vodafone One Net and Vodafone 360, and to expand our fixed line services. We will continue our focus on the delivery of our growth strategy, particularly in data services.”

Download the full announcement (PDF 259Kb)

Notes:
(1) See page 4 for Group financial highlights, page 34 for use of non-GAAP financial information and page 41 for definition of terms.
(2) Includes assumptions of foreign exchange rates for the 2010 financial year of approximately £1:€1.12 and £1:US$1.50.

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