14 DAY TRIAL // Wireless carrier Vodafone has recently announced its financial results for the first half of 2009 plus plans to become more cost effective, by reducing its expenses by £1 billion ($1.67 billion) by March next year. Moreover, the company's CEO Vittorio Colao also stated that the company would make further savings of £1 billion by 2012. Although Vodafone said that it would lower its expenses, no details on possible job cuts have been unveiled, even if it stated it seeks “efficiencies” in call centers and through outsourcing.
When it comes to the carrier's earnings, during the six months ended on September 30, Vodafone saw its revenue rising up to £21.76 billion ($36.46 billion), a 9.3 percent increase when compared to the first half of the last year, while the operating profit was of £5.48 billion ($9.18 billion), up 3.6 percent year on year. The company stated that the earlier full-year profit forecast of around £11 billion ($18.4 billion) to £11.8 billion ($19.77 billion) with free cash flow of around £6.0 billion to £6.5 billion remains unchanged.
When it comes to the various markets in which Vodafone operates, Europe saw revenue going down by 5.1 percent in the time frame, while EBITDA was down 8 percent. In Asia, Pacific, Middle East, it saw its revenues rising by 11.3 percent at constant currencies, complemented by a 48.2 percent increase in customer base. In addition, the company added that Verizon Wireless, its United States joint venture, contributed with about 34 percent of adjusted operating profit to the total figures. Detailed information on its earning results can be found in this press-release (PDF link). Vodafone CEO Vittorio Colao stated the following, “The Group has performed in line with our expectations and we have made strong progress with our strategic priorities, in particular in mobile data and cash generation. We have confirmed our guidance for the full year, despite the uncertainties of current economic trends. The £1 billion cost reduction programme is expected to be delivered a year ahead of plan and we have extended this to a further £1 billion of cost savings by 2012. At the same time, we have maintained our capital investment at £2.6 billion in the first half, delivering further improvements in network quality and performance for our customers.”