Telecom giant Vodafone has reported profits of £8.7 billion for the 09/10 financial year, after growth in its data and broadband services helped the company record £44.5 billion in annual revenue.
The £11.9 billion it recorded in operating profits exceeded the guidance Vodafone posted in February. Although the Newbury-based telecom company suffered a year on year drop of 4.7% in its annual revenue, it was a better-than-expected outcome following a tough 12 months for the telecom sector.
A £1 billion cost savings programme, improved revenue trends in key markets such as the UK, and strong performance in emerging markets has helped Vodafone avoid a major downturn in these recession-hit times.
Revenue growth in emerging economies, in particular India and Africa, is expected to continue to be strong, as the group expands its data service offering in these markets, and intensifies its marketing activities.
Company sources said that if the current economic and employment trends in Europe persist, Vodafone can expect a return to organic revenue growth within the current financial year.
The group pre-tax profit for the year stood at £8.7 billion, compared to last year’s £4.2 billion. Although the group was forced to write-down £2.3 billion from its India operations in the face of intense competition and the award of six new national licenses, the write-downs in previous years had been even bigger.
Vodafone shares were up 2% when the markets opened on Tuesday.