Vodafone has lifted its full-year guidance for growth in underlying profit - as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) - to around 10%
London (AFP) - British mobile phone giant Vodafone rebounded back into first-half net profit after the previous year’s vast Indian writedown was not repeated, it said on Tuesday.
Earnings after taxation hit 1.131 billion euros ($1.318 billion) in the six months to the end of September, it revealed in a results statement.
Vodafone had suffered a spectacular net loss of 5.129 billion euros in the same part of last year, when it was plagued by an enormous writedown on the value of its Indian business.
Operating profit jumped almost a third to 2.0 billion euros in the first half of 2017, boosted by falling costs and lower taxation.
“In the first half of the year we have maintained good commercial momentum,” said chief executive Vittorio Colao.
Turnover meanwhile sagged 4.1 percent to 23.1 billion euros, due partly to the deconsolidation of its Dutch unit Vodafone Netherlands.
Sales were also impacted by the weak pound, which tumbled following last year’s shock EU exit referendum.
In India, Vodafone reported progress but admitted that competition remains fierce.
Turning to the outlook, Vodafone lifted its full-year guidance for growth in underlying profit – as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) – to around ten percent.
That compared with the previous range of between four and eight percent.
“We are able to report a strong financial performance, with substantial … profit growth, and we are raising our financial outlook for the year,” said Colao.