Vodafone is having a tough time of it lately with customers heading elsewhere in search of cheaper plans and bigger allowances and the group had another tough period over the past year as a whole company.
The company is still the world’s second largest wireless carrier, but they saw a 4.2% drop in their “organic service revenue”, which is Vodafone slang for their total gross earnings for their fiscal year up to March the 31st this year. This was in line with their forecasts, but they didn't expect to have to withhold their dividend from the Verizon branch of the company, which Vodafone own 45% of, like they chose to. Instead the £2 billion, which would have been paid to investors, will be ploughed into the company.
According to Reuters these results are a reflection of the economic climate which the company faces and the financial problems which Europe is still dealing with are affecting Vodafone quite badly because these are the company's core markets. There were also regulatory cuts which negatively affected the company in the last three months of their fiscal year, which didn't help either.
There's not too much to worry about though because even with their 4.2% decline in revenue they turned in £44.4 billion ($67.58 billion) in total revenue.
Ohh and for those of you in the USA who have heard speculation about Vodafone selling their 45% stake in Verizon, we think this news makes it increasingly unlikely that that will happen and
Vodafone made no reference at all to the rumours surrounding that deal.
Reuters Via PhoneArena.
