Tuesday, May 19, 2009

Vodafone Net Falls 54% on Impairments

U.K. telecommunications company Vodafone(VOD Quote) said fiscal-year profit fell 54.4% to 3.08 billion pounds as it recorded 5.9 billion pounds of impairments.

Revenue for the fiscal year rose 15.6% to 41 billion pounds, while adjusted operating profit rose 16.7% to 11.8 billion pounds before impairment charges.

Verizon Wireless, which Vodafone owns with Verizon Communications(VZ Quote), saw organic service revenue grow 10.5% in the year, driven by increased customer penetration and data. Vodafone said Verizon Wireless now contributes 30% of its adjusted operating profit.

The company said its cost-cutting plan of 1 billion pounds is "ahead of plan" and Vodafone continues to "explore further ways to reduce cost."

The company said it expects adjusted operating profit in fiscal-year 2010 of 11.0 billion pounds to 11.8 billion pounds.

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