Vodafone H1 Profit Weak, Cuts FY23 View; Plans Cost Cutting; Stock Down

vodafone july23 15nov22 lt

Shares of Vodafone Group Plc were losing around 7 percent in the morning trade in London and 5 percent in the pre-market activity on Nasdaq after the British telecom major reported Tuesday weak profit in its first half with lower revenues. For fiscal 2023, the company now projects adjusted EBITDAaL at at the lower end of original guidance.

The company also announced a new cost savings target of 1 billion + euros by fiscal 2026 through streamlining and simplifying group-wide structure and further accelerating the digitalisation of operations.

Nick Read, Group Chief Executive, said, "In the context of a challenging macroeconomic environment, we are delivering a resilient performance this year, alongside making good progress with our operational and portfolio priorities.... We are taking a number of steps to mitigate the economic backdrop of high energy costs and rising inflation. These include taking pricing action across Europe...."

Vodafone now expects full-year adjusted EBITDAaL to be 15.0 billion euros to 15.2 billion euros, compared to original guidance of 15.0 billion euros to 15.5 billion euros. The global macroeconomic climate has worsened since the initial guidance, with energy costs and broader inflation in particular, impacting financial performance.

Further, the company announced interim dividend per share of 4.5 eurocents, same as last year. The record date is November 25 and the dividend is payable on February 3, 2023.

In its first half, profit Attributable to Owners of the parent declined to 986 million euros from last year's 996 million euros. Basic earnings per share were 3.52 eurocents, compared to 3.40 eurocents in the prior year.

Adjusted basic earnings per share were 6.02 eurocents, compared to 4.90 eurocents last year.

Operating profit grew 12 percent from last year to 2.94 billion euros.

Adjusted EBITDAaL declined 2.6 percent from the prior year to 7.24 billion euros. driven by a material prior year legal settlement, and commercial underperformance in Germany. The Adjusted EBITDAaL margin was 2.0 percentage points lower year-on-year at 31.6 percent.

Group revenue grew 2 percent to 22.93 billion euros from last year's 22.49 billion euros, driven by service revenue growth and higher equipment sales.

Group service revenue grew 2.5 percent from last year to 19.21 billion euros.

In London, Vodafone shares were trading at 96.85 pence, down 7.01 percent. In pre-market activity on Nasdaq, Vodafone shares were trading at $11.68, down 5.1 percent.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
French drug major Sanofi SA reported Friday higher profit in its fourth quarter with strong revenue growth mainly with strong sales of Dupixent. Looking ahead for fiscal 2023, the company projects higher business earnings, but the expected growth is slower than recorded in fiscal 2022. Sanofi shares were losing around 4 percent in the morning trading in Paris as well as in pre-market activity... Chinese electric vehicle manufacturer Xpeng announced the launch of its two latest smart EV models for a number of European markets. Xpeng G9 flagship SUV, and the new P7 sports sedan are now available for order in Denmark, Norway, the Netherlands, and Sweden. Both models are on show at eCar Expo 2023 in Stockholm from February 3 to 5. Herndon, Virginia- based Shop Me Ca is recalling its 10-gram tubes of "Diep Bao Cream" citing the potential to be contaminated with lead, the U.S. Food Drug Administration said. Diep Bao Cream was sold nationwide through Shop Me Ca's Facebook page and certain Vietnamese Moms' Facebook groups, which are not associated with Shop Me Ca.
Follow RTT