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Vodafone raises full-year outlook after strong first half

14 November 2017

Adjusted EBITDA went 4.2 percent higher to Euro 7.4 billion despite the deconsolidation drag.

The latter's revenues, which are not included in Vodafone's results, declined 15.8 percent to €2.6 billion as price wars continued to hammer ARPU. It was previously forecast growth of 4-8 percent. Vodafone further hiked its interim payout to shareholders by 2.1 percent to 4.84 eurocents. Capex, expressed as percentage of revenues, will likely stay in the "mid-teens", for this year and over the medium term.

Vodafone group CEO Vittorio Colao said: "Revenue grew organically in the majority of our markets driven by mobile data and our continued success as Europe's fastest growing broadband provider".

Colao added that in the second half of the year the company will continue to implement strategic initiatives, including fibre infrastructure expansion in Germany, Portugal and the United Kingdom along with its entry into the consumer internet of things (IoT) market.

In India, Vodafone reported progress but admitted that competition remained fierce. The company also pushed down operating costs for the second year running.

"In the second half of the year we will continue to implement our strategic initiatives, including fibre infrastructure expansion in Germany, Portugal and the United Kingdom; our entry into the consumer IoT market with the launch of "V by Vodafone". The company noted that with the announcement to merge Vodafone India with Idea Cellular, Vodafone India has been excluded from group figures.

Focus on women and diabetes
In 2015, an estimated 1.6 million deaths were directly caused by diabetes, with more attributed to high blood glucose. At present, 199 million women are living with diabetes and the number is expected to increase to 313 million by 2040.

"In the second half of the year we will continue to implement our strategic initiatives, including fibre infrastructure expansion in Germany, Portugal and the United Kingdom; our entry into the consumer IoT market with the launch of "V by Vodafone"; and the "Digital Vodafone" programme created to enhance our customers' experience, increasing revenues and cost efficiency". In an analyst note revealed to investors on Monday, 13 November, Vodafone Group (LON:VOD) shares have had their "Buy" Rating maintained by stock research analysts at Goldman Sachs.

By region, Italy and Spain recorded robust growth, while Germany also showed growth.

Sales in Europe were up 2.5 percent to €16.8 billion with only the United Kingdom registering a decline. The company said its first-half revenue declined 4.1% primarily due to the deconsolidation of Vodafone Netherlands following the creation of the joint-venture "VodafoneZiggo", and foreign exchange movements. The Company's divisions include Europe and AMAP.

About 58.03M shares traded or 2.13% up from the average.

Shares in Vodafone were trading up 5 percent at 1005 GMT, having earlier hit a three month high of 227.50 pence.

Vodafone raises full-year outlook after strong first half