Vodafone IMS

Vodafone Group PLC is engaged in providing voice and data communications services for both consumers and business customers, with a significant presence in Europe, the Middle East, Africa and the Asia Pacific region.  I have a holding in my income portfolio (epic code: VOD).

 

Vodafone issued their first quarter IMS today and was much as expected.  Group revenue at £10.2bn was down 4.4% on an organic basis and service revenue down 4.2% at £9.4bn, Europe service revenue declined -7.9% and AMAP grew by 4.7%.  Fastest growing markets appeared to be India at 10.3% and Turkey at 3.7%. 

 

Capital expenditure of £1.9bn in the quarter nearly doubled year-on-year as they started their two-year £19bn investment programme.

 

Management have stated that "...Trading in the first quarter was consistent with management's expectation underlying the outlook statement for the 2015 financial year1. The Group therefore confirms its outlook for the 2015 financial year..."  Management's guidance is for EBITDA to be in the range of £11.4bn to £11.9bn and free cash flow to be positive, after all capex, but before spectrum and restructuring costs.