Why Vodafone's Quarterly Statement Disappoints the Market

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

LONDON --Vodafone Group (LSE: VOD.L  ) dropped 4 pence, or 2%, this morning to 179 pence after it announced its interim management statement for the quarter ended June 30.

Group revenue at 10.8 billion pounds was a reported 7.7% down on the previous year and group service revenue (10.0 billion pounds) decreased by 8.1%. European service revenue fell 1.6% with the U.K. (0.8%), Italy (7.7%), and Spain (10%) all contributing to the decrease. Bright notes were provided by Germany with a rise in service revenue of 4.2% and the emerging markets of Turkey (18.7%) and India (16.2%).

Free cash flow also fell by 24.9% to 0.9 billion pounds after capital investment of 1.1 billion pounds.

Vittorio Colao, chief executive, commented: 

Despite the difficult market conditions, particularly in southern Europe, we continue to make progress in the key areas of data, enterprise and emerging markets, while maintaining tight control of our cost base. We remain focused on driving through significant improvements to our customers' experience through our ongoing investment in our networks, stores and IT platforms.

The results underline the challenge faced by the telecoms companies in the current global climate, although in the United States, Verizon Wireless is performing well with service revenue growth of 8.2%

Vodafone is expected to complete the acquisition of Cable & Wireless Worldwide on July 27. The cash consideration for the acquisition of CWW is approximately 1,048 million pounds.

If you want to see if we rate telecoms as a top-performing sector, why not take a look at our completely free report "Top Sectors Of 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

If you are new to investing and want to know more about how to start then we have a great report for you too "What Every New Investor Must Learn". It's free and will be with you right away.

Further Motley Fool investment opportunities

Barry does not own shares in any of the companies mentioned. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1950811, ~/Articles/ArticleHandler.aspx, 10/23/2016 8:04:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes