COM) 30/05/00 07:49: Vodafone posts FY profit close to 2.5 bln stg
Vodafone posts FY profit close to 2.5 bln stg
LONDON (AFX) - Vodafone AirTouch PLC, the world's largest mobile phone
company, reported full-year profits of almost 2.5 bln stg today, though most
attention will focus on its 26.9 bln stg sale of Orange to France Telecom.
In the year to March 31, Vodafone reported pretax profit, on a
pre-exceptional and goodwill basis, of 2.474 bln stg against the previous year's
1.80 bln. Analysts were anticipating profit to be between 2.15-2.37 bln stg.
The total dividend has been raised 5 pct to 1.335 pence from 1.272.
Chris Gent, chief executive of Vodafone, said the results cap a year which
more than quadrupled the size of the business. Over the year, the company bought
Mannesmann AG for more than 100 bln stg and closed its deals with Airtouch and
Bell Atlantic.
He said the group's strategy is aimed at pursuing growth in three different
ways, "accelerated customer growth, geographic expansion and the provision of
new services to customers".
The group's worldwide customer base at the end of March was 39.1 mln
proportionate customers, 54 pct higher than the prior year. The total number of
customers in ventures the group invests in or controls was 86.1 mln.
The company said it is very well positioned technically, financially and
managerially not only to enjoy the rapid growth still to come in mobile
telephony but also to lead the way in multi-access internet service development,
in the best markets in the world.
The company also said that the proceeds from the Orange sale will put it in
a strong financial position to bid for third generation mobile phone licences
across Europe. Earlier this year the group bid over 6 bln stg to win the largest
3G licence open to incumbents in the UK.
As part of the Orange sale, Vodafone will take a 9.9 pct stake in France
Telecom, though it will not have any voting rights. Vodafone can sell the shares
in the market, subject to a six-month lock-up period following completion.
France Telecom has agreed to provide the Vodafone marketing support for such
market sales.
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