Vodafone, the world's second largest mobile operator, met expectations with a 2.6% rise in full-year core earnings to 14.9 billion euros. File picture: Reuters/Amr Abdallah Dalsh
Vodafone, the world's second largest mobile operator, met expectations with a 2.6% rise in full-year core earnings to 14.9 billion euros. File picture: Reuters/Amr Abdallah Dalsh

Vodafone sees 'significant increase in data volumes'

By Paul Sandle Time of article published May 12, 2020

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London - Vodafone, the world's second largest mobile operator, met expectations with a 2.6% rise in full-year core earnings to 14.9 billion euros ($16.10 billion), but did not give a current year outlook due to the uncertainty caused by the coronavirus.

"We are experiencing a direct impact on our roaming revenues from lower international travel and we also expect economic pressures to impact our customer revenues over time," it said on Tuesday.

"However, we are also seeing significant increases in data volumes and further improvements in loyalty, as our customers place greater value on the quality, speed and reliability of our networks."

The company said given the uncertainties and impacts of the global pandemic it was not able to provide adjusted core earnings guidance for the current year.

But it said that based on assessment of the global economy, it could be flat to slightly down, compared to a rebased 14.5 billion euros for 2020.

It did provide guidance for free cash flow before spectrum costs, which underpins its dividend, saying it would be at least 5 billion euros.

Vodafone Chief Executive Nick Read cut the company's dividend a year ago, relieving immediate pressure on the group's balance sheet. It maintained its full-year payout at 9.00 euro cents a share. 

Vodafone also jumped 3.4% to the top of the index after meeting full-year profit expectations and saying it was seeing significant increases in data volumes.

Home improvement group Kingfisher said sales in the three months ended April fell by a quarter, but its shares rose 6.5% as it said store re-openings meant it was seeing an improving trend at the beginning of May.

The stock was the top boost to the domestically focussed FTSE 250, pushing up the index 0.2%.

Reuters

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