Vodafone shows net loss, revenue growth

Fueled by takeovers and joint ventures, Vodafone Group PLC saw its proportionate operating profit and revenue increase significantly over the last year, the company reported Tuesday.

In its preliminary results for the fiscal year ending March 31, Vodafone said that proportionate operating profit at the company's mobile businesses before goodwill and exceptional items was up 26 percent at 5.02 billion pounds (US$7.16 billion) compared to 3.98 billion pounds in the previous fiscal year. All figures are proportionate to Vodafone's holdings in the world; if an operator is partially owned by Vodafone, the percentage owned by Vodafone is included in the results.

Vodafone attributes the increase in the proportionate figures chiefly to the acquisition of Mannesman in Germany and the formation of Verizon Wireless in the U.S.

The net figures show a loss, mainly due to 5.3 billion pounds in goodwill amortization. Vodafone's net loss for the year was 9.76 billion pounds, compared to a net profit of 487 million pounds in the previous year.

Proportionate revenue at the mobile businesses came in at 21.43 billion pounds, up 29 percent from 16.59 billion pounds the previous year.

Group net debt on March 31 was 6.7 billion pounds, or 5.4 percent of Vodafone's market capitalization, the company noted. Payment for 3G (third-generation) mobile telephony licenses has been taken into account. Spending on 3G infrastructure will start in the current financial year and commercial launches of services are expected in the second half of 2002, Vodafone said.

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