Vodafone meets earnings expectations, pulls guidance due to Covid-19
The Vodafone logo seen displayed on a smartphone with a computer model of the coronavirus in the background.
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Vodafone, the second largest mobile operator in the world, met expectations with a 2.6% increase in full-year basic profit to 14.9 billion euros ($ 16.10 billion), but n ‘has not given any outlook for the current year due to the uncertainty caused by the coronavirus.
“We are experiencing a direct impact on our roaming revenues from the decline in international travel and we also anticipate that economic pressures will impact our customers’ revenues over time,” he said on Tuesday.
“However, we are also seeing significant increases in data volumes and further improvements in loyalty as our customers place greater importance on the quality, speed and reliability of our networks.”
The company said that given the uncertainties and impacts of the global pandemic, it was unable to provide adjusted baseline earnings forecasts for the current year.
But he said that based on an assessment of the global economy, it could be flat to slightly down from 14.5 billion euros rebased for 2020.
He provided guidance on free cash flow before spectrum costs, which underpins his dividend, estimating that it would be at least 5 billion euros.
Vodafone chief executive Nick Read cut the company’s dividend a year ago, easing immediate pressure on the group’s balance sheet. He maintained his annual payment at 9.00 euro cents per share.