Vodafone Posts £3.3 Billion Half-Year Loss as European Rivalry Bites

Vodafone reported a loss of 3.3 billion pounds (about 6.3 billion dollars) for the first half of its financial year, as intensifying competition across European markets weighed heavily on the British telecommunications giant.

CEO Arun Sarin said the company remained on course to hit its full-year targets, noting a pre-tax profit of 4.8 billion pounds before one-off charges of 8 billion pounds were factored in. Total revenues for the six months through September rose 4 percent to 15.6 billion pounds.

Revenue declines in the UK, Germany, and Italy dragged on overall results. UK sales slipped to 2.55 billion pounds from 2.57 billion pounds a year earlier, while Germany fell 3 percent and Italy dropped 2.9 percent.

Growth in other markets helped cushion the blow. Spain delivered a 15 percent revenue increase to 2.7 billion pounds, and Vodafone's US partner network, Verizon Wireless, posted 18 percent growth. Developing markets including Egypt, South Africa, and Romania also contributed positively to the period's performance.

Historical summary. TurkishPress restated this wire report, first published in November 2006, in its own words.