Vodafone full-year profit more than doubles

[May 18, 2010]  LONDON (AP) -- Vodafone Group PLC, the world's largest mobile telephone company, saw its full year profit more than double as strong growth in Asia helped offset declines elsewhere, the company said Tuesday.

The company said net profit in the year ending March 31 was 8.65 billion pounds ($12.5 billion) compared to 3.08 billion pounds a year earlier, while revenue rose 8.4 percent to 44.5 billion pounds.

Despite the solid increase in overall sales, there was a big disparity between regions.

While revenue fell 3.5 percent in Europe and 1.2 percent in Africa and central Europe, Asia Pacific Middle East income swelled 9.8 percent -- India led the way with a 14.7 increase in service revenue.

For the fourth quarter alone, revenue was up 5 percent to 10.5 billion pounds. Vodafone did not break out quarterly earnings.

Elsewhere, Vodafone said Verizon Wireless, the U.S. joint venture with Verizon Communications Inc. in which Vodafone has a 45 percent stake, posted a 6 percent increase in full-year revenue.

Vodafone shares were up 2 percent at 139.1 pence on the London Stock Exchange.

"Vodafone's financial results exceeded our upgraded guidance on all measures," chief executive Vittorio Colao said.

"Revenue trends have improved again in Q4 driven by growth in mobile data and fixed broadband. Cost reduction targets were delivered ahead of schedule enabling commercial reinvestment to improve market share and further strengthen our technology platforms."

Colao also said the company is now generating a third of its revenue from services other than mobile voice communications.

Full year earnings were boosted by a reduction in one-time impairment losses from 5.9 billion pounds to 2.1 billion pounds; further gains came from a sharp fall in income tax from 1.1 billion pounds to 56 million pounds, and a reduction in finance costs.

Vodafone said it expected adjusted operating profit in the current year to be between 11.2 billion pounds and 12 billion pounds, compared to 11.5 billion pounds in the recent fiscal year.

[Associated Press; By ROBERT BARR]

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