Saturday April 19, 2014


QUESTION OF THE WEEK

Survey results are meant for general information only, and are not based on recognised statistical methods.



Home »  News »  Business

Problems in Spain and Italy drive Vodafone to 2 billion pounds loss in first half


British Formula One driver Lewis Hamilton drives a car with the Vodafone brand in Mumbai on Sept. 16, 2012.THE CANADIAN PRESS/AP, Rajanish Kakade

LONDON - Mobile communications company Vodafone Group PLC reported a big half-year loss after booking a hefty charge on its Spanish and Italian operations.

For the six months ending Sept. 30, Vodafone made a loss of 1.98 billion pounds ($3.18 billion), compared to a net profit of 6.68 billion pounds a year earlier.

Revenue fell 7 per cent to 21.8 billion pounds largely because of adverse currency movements.

The company said Tuesday the 5.9 billion pounds ($9.4 billion) impairment charge for Spain and Italy reflected lower projected cash flows and increased discount rates.

Vodafone shares opened 3 per cent lower at 161.55 pence on the London Stock Exchange.

"The wider market has held concerns over Southern Europe for some time now, and these numbers from Vodafone are uncomfortable proof that the financial fears are well-founded," said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.

Vodafone does stand to collect a $3.8 billion dividend by the end of the year from its 45 per cent stake in Verizon Wireless, the U.S. joint venture with Verizon Communications Inc. Vodafone said it would use most of that dividend for a share buyback program worth 1.5 billion pounds.

The dividend announced Monday is the second from Verizon Wireless this year. In January, Verizon Wireless ended a policy of using its cash to pay debt, freeing up money to pay a $10 billion dividend to both owners.


Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Alaska Highway News welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus


About Us | Advertise | Contact Us | Sitemap / RSS   Glacier Community Media: www.glaciermedia.ca    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy

LOG IN



Lost your password?