Vodafone H1 earnings, alongside other UK companies in fiancé, retail, property and pharma, helped the FSTE nudge up this morning. These balanced against the falls in commodities.
FTSE 100 up 0.1%, FTSE 250 up 0.31% on early deals.
Though a mixed bag, the Vodafone headline made positive reading with Group revenue at £20,752million, up 8.9 percent. The phone company also announced interim dividend per share of 3.60 pence, up 2.0%.
Underlying the revenue however, were losses on pretax profit falling to £406m from £1.5bn.
Vittorio Colao, Group Chief Executive, noted in the release that several factors had stimulated Vodafone’s earnings:
Growing evidence of stabilisation in a number of European markets, supported by improvements in commercial execution and very strong demand for data.
A two year, £19 billion investment programme is underway, and customers are beginning to see the benefits: in wider 3G and 4G data coverage, improved voice quality and reliability, and increased access to next generation fixed line services.
Customers are showing an increasing propensity to trade up to bigger data allowances as a result of the 4G experience.
In India, growth has accelerated, stimulated by investment in our 3G network.
The company’s unified communications strategy continues to advance, with accelerating customer growth, further progress on fibre deployment, and the ongoing integration of recent acquisitions.
Colao also comments on future expectation, saying, “Today in Europe, only 6% of our customers are using 4G. In the next 18 months, we will reach 90% 4G coverage in Europe, giving us a great opportunity to increase penetration, stimulate data usage and grow customer spend. At the same time, we remain committed to shareholder returns, as the growth in the interim dividend demonstrates.”
Vodafone chart on MT4
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