Revenues rise but profits pegged back in Vodafone H1
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Editor
| 16 November 2021
Just after it announced its huge ambition to be the UK’s leader in full-fibre broadband, Vodafone has released first half year results showing solid advances in revenue and cash inflow but with profits slipping back compared with a year ago.
Vodafone Germany 19July2019
For the six months ended 30 September 2021, Vodafone announced total revenues of €22.489 billion, an increase of 5.0% compared with the same period a year earlier driven by service revenue growth in Europe and Africa, recovery in handset sales following Covid-19 disruption in the prior year, as well as favourable foreign exchange movements. Adjusted EBITDAaL increased by 6.5% on an annual basis to €7.6 billion due to both the aforementioned revenue growth and a legal settlement in Italy. The Adjusted EBITDAaL margin was 0.7 percentage points higher year-on-year at 33.6%.

One of the drivers for the revenues was rising customer numbers. At the end of the half year, Vodafone had 66.0 million European mobile contract customers, up by 1 million on the same period a year earlier and grew broadband customers by 200,000 over the course of the year to total 25.6 million. Vodafone 5G was available in 244 European cities, almost double the number a year ago. Europe TV subscribers totalled 22.2 million, down by 100,000 compared with the end of the first half of 2020.

However, operating profit for the six months of the current fiscal year decreased by 21.9% compared with the previous one to €2.6 billion, reflecting said the operator a prior year gain of €1.0 billion arising on the merger of Vodafone Hutchison Australia into TPG Telecom.

Assessing the half year for the company, said that they showed how the company has demonstrated good sustainable growth and solid commercial momentum. “Our strengthened performance in Africa and Europe puts us on track to be at the top end of our guidance for this year, as well as firmly within our medium-term financial ambitions,” commented Vodafone group chief executive Nick Read. “We know there is more to do, and our focus remains on driving growth. We are structured for value creation, with operational priorities and portfolio actions which are designed to improve returns at pace.”