Vodafone posts biggest ever UK company loss

Vodafone posts biggest ever UK company loss

Vodafone this morning (Tuesday) posted a massive £13.5bn pre-tax loss, thought to be the biggest in UK corporate history.

The loss, which equates to £37m a day, was a result of paying over the odds for acquisitions made during the telecoms boom.

The company said the acquisitions in question were those of Japan Telecom and J-Phone, and its £113bn takeover of German industrial group Mannesmann two years ago.

But it was not all bad news, Vodafone reported that proportionate revenues increased by 44% to just over £10m and operating cash flow was up by 60% to 11.92p.

The company’s profit for the year ending 31 March 2002 before tax and one-off costs was £6.12bn, compared with £4.03bn a year earlier. Turnover rose 52% to £22.85bn, and Vodafone’s full-year dividend was up 5% to 1.47p per share.

The company also said it had seen continued growth in its customer base, with a 22% increase in proportionate registered customers to 101.1 million.

Chief executive Sir Christopher Gent was upbeat: ‘The past year has seen the group successfully execute its adjusted strategy, delivering very strong operational performance and exceptional financial results, including the generation of substantial free cashflow.’

Gent added that in the current year, he envisages net customer growth of just below 10%, allowing for the expected disconnections of non-revenue generating handsets, and a ‘modest but real’ improvement in average revenue per user in most of the company’s major European markets.

‘This combination should lead to double-digit revenue growth,’ he added.

‘We have every confidence in the continued growth potential of the business. This year will see many exciting new developments which will sustain the long-term growth of Vodafone in the years to come.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource