Vodafone profit declines 8.7%

“We recorded impairment charges of GBP 6.1 billion relating to our businesses in Spain, Greece, Portugal, Italy and Ireland, which were primarily driven by higher discount rates given sharply increased interest rates,” Vodafone Chief Executive Officer Vittorio Colao said.
Revenue, however, rose 3.2 per cent to GBP 45.88 billion.

Despite the dip in profit, Vodafone said the company is well-positioned to deliver further value to its shareholders. Vodafone has forecast that its operating profit in fiscal 2012 will be between 11.0 billion and 11.8 billion pounds. Colao said its Indian business had registered an organic growth of 16.2 per cent. “Our performance in India has been driven by increasing voice penetration and a more stable pricing environment,” he added.

Last month, Vodafone also paid $5 billion to buy out its joint-venture partner Essar in India to strengthen operations. Growth in India was driven by 39 per cent jump in average mobile customer base and stable per customer usage trends.

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