19th Oct 2005 12:00
Vodafone Group Plc19 October 2005 19 October 2005 INFORMATION RELATING TO 2005 INTERIM RESULTS Vodafone Group Plc ("Vodafone" or "the Group") is publishing today additionalpolicy and disclosure information in order to assist investors and analysts intheir understanding of its Interim Results for the six months ended 30 September2005 to be announced on 15 November 2005: Stake changes With effect from 1 June 2005, the Group will fully consolidate the results ofMobiFon in Romania and Oskar in the Czech Republic. MobiFon will beproportionately consolidated as a joint venture from 1 April 2005 to 31 May2005. The Group's effective interest in Vodafone Japan increased last year due to thetender offer announced in May 2004. The Group's average effective interest inVodafone Japan in the first half of the last financial year was 84.3% comparedto 97.7% this year. Organic growth When calculating organic growth rates, the Group excludes the effect of exchangerate movements by restating the prior period's results as if they had beengenerated at the current period's exchange rates. In addition, where an equityinterest was newly acquired or disposed of in the current or prior year, theGroup adjusts, under organic growth calculations, the results for the currentand prior year to remove the amount the Group earned in both periods as a resultof the acquisition or disposal. Where the Group increases or decreases an equityinterest in the current or prior year, the Group's share of results for theprior year is restated at the current year's ownership level. The Group does notadjust for changes in the amount or scope of termination rates when calculatingorganic growth. Brand royalty charges Vodafone operating companies are licensed on an arm's length basis to use theVodafone brand and related trademarks. These arrangements have been reviewed andthe charges revised with effect from 1 April 2005 to reflect the positioning ofthe brand in the current markets. There is no material impact on the Group's overall EBITDA or EBITDA margin. Theimpact of the revisions is to reduce individual operating company margins by upto 1.1 percentage points, depending on the operating company, with a broadlycorresponding increase in EBITDA attributable to the Common Functions segment. Disclosure The Group currently provides a detailed cost analysis for each of its majoroperating companies. This level of cost analysis will be provided in aggregatefor the Group's other mobile subsidiaries and other mobile joint ventures. In order to improve the comparability of the Group's KPIs between periods and toensure consistency of periods reported for each KPI, the Group will revise itsexisting disclosure, with immediate effect, as follows: ARPU is currently reported on a 12 month rolling basis. ARPU will now bereported on a rolling 3 month basis, with the monthly average in the 3 monthperiod being disclosed. Data as a % of service revenue will be presented on a 3 month basis to beconsistent with the disclosure of ARPU. Churn will be presented on an annualised 3 month basis. Finally, the Group will provide additional disclosure in respect of voice usage.The Group will disclose total voice minutes on a 3 month basis for each of itsmobile subsidiaries together with Vodafone Italy and for the Group as a whole ona statutory basis. For further information: Vodafone Group Investor Relations Media RelationsTelephone: +44 (0)1635 664447 Telephone: +44 (0) 1635 664444 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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