Key highlights:
- Group: Revenue of £10,470 million, up 14.3%
- Pro forma service revenue growth including India of 1.4%
- Group data revenue of £786 million, up 25.3% on an organic basis
- Proportionate mobile customer base of 289.0 million at 31 December 2008, up 9.5 million in the quarter
- Europe: Service revenue up 15.0%, driven by strong foreign exchange
- Organic service revenue down 1.4%; trends broadly similar to second quarter in a weaker market environment
- Solid results in Germany and Italy and stabilised results in the UK offset continuing weakness in Spain
- Africa & Central Europe: Service revenue up 6.1%
- Continued good growth in Vodacom offset by Turkey
- Asia Pacific & Middle East: Service revenue up 27.9%
- Record customer growth in India; service revenue growth of 29.6% at constant exchange rates
- Verizon Wireless: Service revenue up 12.2%; data revenue up 49.4%, both in local currency
- Alltel acquisition completed on 9 January 2009
- Strategy: Good early progress on all objectives, including £1 billion cost saving programme
- Outlook: Underlying ranges confirmed. Increased guidance to reflect foreign exchange environment
- Adjusted operating profit in the range of £11.5 billion to £12.0 billion, an increase of £0.5 billion
- Free cash flow in the range of £5.5 billion to £6.0 billion, an increase of £0.3 billion
Vittorio Colao, Chief Executive, commented:
“Our underlying performance showed similar trends to the previous quarter, with pro forma service revenue up 1.4% including India and at constant exchange rates. In the context of the current economic environment, we have continued to implement our strategy, with an emphasis on customer value, mobile data, Enterprise and fixed broadband. This has driven increased usage, 25% organic growth in data revenue and over 280,000 fixed broadband additions in Europe. We have also made progress on our plans to reduce costs by £1 billion by March 2011. Underlying guidance is confirmed.”
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