23rd May 2007 11:00
Vodafone Group Plc23 May 2007 23 May 2007 INFORMATION RELATING TO PRELIMINARY RESULTS Vodafone Group Plc ("Vodafone") is publishing today additional information toassist investors and analysts in their understanding of Vodafone's results forthe year ended 31 March 2007 and outlook statement for the year ending 31 March2008 ("2008 financial year") to be announced on 29 May 2007. Regional structure In April 2006, Vodafone announced a revised organisational structure,principally aimed at creating a Europe Region and an Eastern Europe, Middle Eastand Africa, Asia, Pacific and Affiliates ("EMAPA") Region, effective from 1 May2006. Arcor, the Group's fixed line business in Germany, was managed independentlyfrom these two regions and therefore financial information for Arcor waspresented separately. With effect from October 2006, Arcor has been managedwithin the Europe Region and consequently the preliminary results will presentsegmental financial information, including comparative information, for theGroup in accordance with this structure. Certain unaudited comparative information for the year ended 31 March 2006 andthe six months ended 30 September 2006 is provided below on this basis. Basis for outlook statement The Group has previously stated that its outlook statement on revenue andprofitability will move from a proportionate basis to a statutory basis witheffect for the 2008 financial year. The outlook for profitability will be basedon adjusted operating profit, which is representative of all the Group'sbusinesses, rather than statutory EBITDA, which excludes the results fromassociates. There will be no change in basis for capital expenditure or cashflow. The Group's outlook will reflect current expectations for average foreignexchange rates for the 2008 financial year. Accordingly, the Group will provide an outlook statement based on the followingmeasures and in the format illustrated: * Group revenue £ * to * billion * Group adjusted operating profit £ * to * billion * Capitalised fixed asset additions £ * to * billion * Free cash flow £ * to * billion The Group will provide an estimate for total depreciation and amortisation. Theoutlook for free cash flow and capitalised fixed asset additions will be statedincluding the impact of any known spectrum or licence purchases only. Following completion of the Hutchison Essar acquisition on 8 May 2007, itsresults will be consolidated and reflected in the outlook statement from thatdate. For further information: Vodafone GroupInvestor Relations Media RelationsTel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444 The financial information contained in this document is for convenience only anddoes not contain sufficient information to allow a full understanding of thehistorical results and state of affairs of Vodafone and the Vodafone Group. Formore detailed information, including definitions of terms, regarding thefinancial results of the Vodafone Group for the financial periods referred to inthis announcement, please refer to Vodafone's Annual Report for the year ended31 March 2006 or Vodafone's interim results announcement for the six monthsended 30 September 2006 relating to such financial period, as appropriate, whichin each case can be found on our website (www.vodafone.com). TRADING RESULTSSIX MONTHS ENDED 30 SEPTEMBER 2006 Common Europe(1) EMAPA functions Eliminations Group £m £m £m £m £m Voice revenue 8,968 2,436 - (34) 11,370Messaging revenue(2) 1,458 331 - (3) 1,786Data revenue (2) 603 56 - (9) 650Fixed line operators and DSLrevenue 683 34 - - 717 ---------------------------------------------------------Total service revenue 11,712 2,857 - (46) 14,523Acquisition revenue 466 176 - - 642Retention revenue 174 8 - - 182Other revenue 132 34 86 (5) 247 ---------------------------------------------------------Total revenue 12,484 3,075 86 (51) 15,594Interconnect costs (1,880) (520) - 46 (2,354)Other direct costs (899) (353) - 5 (1,247)Acquisition costs (1,243) (313) - - (1,556)Retention costs (763) (91) - - (854)Operating expenses (2,765) (698) 122 - (3,341) ---------------------------------------------------------EBITDA 4,934 1,100 208 - 6,242Acquired intangibles amortisation (8) (189) - - (197)Purchased licence amortisation (443) (24) - - (467)Depreciation and otheramortisation (1,408) (364) (72) - (1,844)Share of result in associates 2 1,405 - - 1,407 ---------------------------------------------------------Adjusted operating profit 3,077 1,928 136 - 5,141Adjustments for: - - Non-operating income of associates - 6 - - 6- Impairment losses (8,100) - - - (8,100)- Other income and expense - - 1 - 1 ---------------------------------------------------------Operating profit/(loss) (5,023) 1,934 137 - (2,952) ========================================================= TRADING RESULTSYEAR ENDED 31 MARCH 2006 Common Europe(1) EMAPA functions Eliminations Group £m £m £m £m £m Voice revenue 17,827 3,636 - (58) 21,405Messaging revenue(2) 2,836 454 - (1) 3,289Data revenue(2) 1,023 86 - (11) 1,098Fixed line operators and DSLrevenue 1,271 19 - - 1,290 ---------------------------------------------------------Total service revenue 22,957 4,195 - (70) 27,082Acquisition revenue 1,018 277 - - 1,295Retention revenue 434 14 - - 448Other revenue 324 68 145 (12) 525 ---------------------------------------------------------Total revenue 24,733 4,554 145 (82) 29,350Interconnect costs (3,739) (794) - 70 (4,463)Other direct costs (1,666) (442) - 12 (2,096)Acquisition costs (2,501) (467) - - (2,968)Retention costs (1,752) (139) - - (1,891)Operating expenses (5,243) (1,053) 130 - (6,166) ---------------------------------------------------------EBITDA 9,832 1,659 275 - 11,766Acquired intangibles amortisation (2) (155) - - (157)Purchased licence amortisation (884) (63) - - (947)Depreciation and otheramortisation (3,000) (602) (72) - (3,674)Share of result in associates 5 2,398 8 - 2,411 ---------------------------------------------------------Adjusted operating profit 5,951 3,237 211 - 9,399Adjustments for: - - - Non-operating income of associates - 17 - - 17- Impairment losses (23,515) - - - (23,515)- Other income and expense 3 - 12 - 15 ---------------------------------------------------------Operating profit/(loss) (17,561) 3,254 223 - (14,084) ========================================================= Notes: (1) Within the Europe region, certain revenue and costs relating to Arcor have been reclassified. All prior periods have been adjusted accordingly. The reclassification had no effect on total revenue, EBITDA or adjusted operating profit.(2) Certain revenue relating to content delivered by SMS and MMS has been reclassified from messaging revenue to data revenue. All prior periods have been adjusted accordingly. REGIONAL ANALYSIS Adjusted operating Capitalised fixed Revenue EBITDA profit asset additions Free cash flow(1) ------------------ ----------------- ------------------ ------------------- ------------------ Six Six Six Six Six months Year months Year months Year months Year months Year ended ended ended ended ended ended ended ended ended ended 30-09-06 31-03-06 30-09-06 31-03-06 30-09-06 31-03-06 30-09-06 31-03-06 30-09-06 31-03-06 £m £m £m £m £m £m £m £m £m £mEUROPE Germany 2,827 5,754 1,263 2,703 724 1,496 198 592 990 2,167Italy(2) 2,174 4,363 1,128 2,270 839 1,672 184 541 878 1,808Spain 2,268 3,995 813 1,373 585 968 213 502 432 958UK 2,549 5,048 785 1,623 318 698 305 665 393 942Arcor 706 1,320 126 228 83 139 76 129 (16) 56Greece 636 1,233 250 470 167 317 74 108 160 336Netherlands 600 1,174 176 369 102 219 50 124 136 224Portugal 466 899 168 286 107 163 44 115 101 153Other 519 1,400 225 510 152 279 55 164 146 310Intra-regionrevenue (261) (453) - - - - - - - - ------------------ ----------------- ------------------ ------------------- ------------------Total Europe 12,484 24,733 4,934 9,832 3,077 5,951 1,199 2,940 3,220 6,954 EMAPA Romania(3) 355 533 175 254 68 88 82 104 121 159Turkey(4) 283 - 65 - (18) - 36 - 134 -Egypt 355 555 198 307 155 212 66 167 137 190South Africa(2) 727 1,070 261 388 152 271 92 202 139 178Pacific 666 1,335 165 362 66 140 104 247 61 112Othersubsidiaries 397 675 120 195 41 42 77 132 72 61Other jointventures(2) 294 387 116 153 59 86 101 101 27 60United States - - - - 1,015 1,732 - - - -Other Associates - - - - 390 666 - - - -Intra-regionrevenue (2) (1) - - - - - - - - ------------------ ----------------- ------------------ ------------------- ------------------Total EMAPA 3,075 4,554 1,100 1,659 1,928 3,237 558 953 691 760 Common functions 86 145 208 275 136 211 67 112 110 (19)Inter-regionrevenue (51) (82) - - - - - - - - ------------------ ----------------- ------------------ ------------------- ------------------Total Group 15,594 29,350 6,242 11,766 5,141 9,399 1,824 4,005 4,021 7,695 ================== ================= ================== =================== Net interest paid (186) (349)Tax paid (1,217) (1,712)Dividends received and other 337 784 ------------------Free cash flow - Continuing operations 2,955 6,418- Discontinued operations(5) (8) 701 ------------------ 2,947 7,119 ==================Notes: (1) For the Group's operating companies and common functions, the cash flows presented reflect operating free cash flow(2) The results of joint ventures have been included using proportionate consolidation(3) Includes periods in the 2006 financial year where accounted for as a joint venture(4) Presents the results from 24 May 2006, being the date of acquisition(5) Discontinued operations represent Vodafone Japan This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Vodafone