Vodafone Group runs on the Stock Exchange after the financial results in chiaroscuro. In the fiscal year ended March 31, 2019 the group recorded a loss of 7,6 billion of Euro. The data was expected by the market, having been anticipated last November, and is attributable - explains the company - mainly to the sale of assets in India and to some write-downs.
I revenues of the group fell by 6,2% from 46,6 to 43,7 billion euros, discounting the impact of the adoption of IFRS 15 criteria and the sale of Vodafone Qatar, explains the Vodafone group press release. THE revenues from services rose by 0,3% to 36,458 billion (-0,6% in the fourth quarter) despite the difficulties deriving from the growing competition in Spain and Italy, where the arrival of Iliad has put a strain on other telephone companies, and the negative exchange rate effect in South Africa. “In these countries, increased competition weighed on revenue growth and, together with the high costs incurred for the auction (that of 5G ed.) reduced our financial margin,” said the CEO of Vodafone Group, Nick Read.
From a sectoral point of view, revenues from the mobile network amounted to 26,862 billion, those from fixed network to 9,596 billion euros.
Instead, the increaseadjusted ebitda, up 3,1% on an organic basis, in line with the consensus.
Vodafone has decided to give a net dividend cut, which in 2019 dropped from 15,07 to 9 cents per share, resources that will be used by the group to push the construction of the 5G network and complete the acquisition of Liberty Global.
For 2020, the company announced a target in terms of ebitda between 13,8 and 14,2 billion, while the cash flow should be no less than 5,4 billion.
For Italy revenues from services fell by 5,9% to 4,979 billion, a result that reflects "the increase in furniture price competition following the entry of a new company (Iliad ed.). Not surprisingly, mobile revenues fell by 9,4% to 3,893 billion euros despite the growth of 4G customers which reached 12,5 million (+2,4%). Good news comes from the fixed network, whose revenues rose by 9,6% to 1,086 billion euros, while the number of ultra-broadband customers rose by as much as 282. “Moreover, thanks to the strategic partnership with Open Fiber – underlines the company – we are now able to cover 6,5 million users in Italy”.
As of March 31, theadjusted ebitda in our country fell by 5,8% to 2,189 billion euros, while theadjusted ebit it stood at 921 million.
On the London Stock ExchangeAfter opening the session down 2,7%, Vodafone shares reversed course and at 10.55am gained 3% to £135,7.
