This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/may/21/vodafone-first-revenue-fall-southern-europe

The article has changed 8 times. There is an RSS feed of changes available.

Version 1 Version 2
Vodafone reports first ever fall in revenues as southern Europe slumps Vodafone reports first ever fall in revenues as southern Europe slumps
(about 1 hour later)
Vodafone has recorded its first ever fall in annual revenues as the recession in southern Europe saw its takings there fall by almost 17%. Vodafone has recorded its first ever fall in annual revenues as the recession in southern Europe caused its takings there to dip by almost 17%.
With its finances under pressure, the British mobile phone giant said it would reinvest next month's £2.1bn dividend from US subsidiary Verizon Wireless in the business, rather than returning cash to shareholders.With its finances under pressure, the British mobile phone giant said it would reinvest next month's £2.1bn dividend from US subsidiary Verizon Wireless in the business, rather than returning cash to shareholders.
Overall revenues at the British mobile phone company fell by 4.2% to £44.4bn, marking the first such contraction in the company's history.Overall revenues at the British mobile phone company fell by 4.2% to £44.4bn, marking the first such contraction in the company's history.
Tuesday's results also marked the largest fall in organic service revenue, which counts income from calls but excludes handset sales, and takes into account mergers and disposals and changes in currency values, since the measure was introduced in 2003.Tuesday's results also marked the largest fall in organic service revenue, which counts income from calls but excludes handset sales, and takes into account mergers and disposals and changes in currency values, since the measure was introduced in 2003.
The company wrote down the value of its businesses by £1.8bn, bringing to £7.7bn the reduction in book value of its operations in Italy and Spain this year.The company wrote down the value of its businesses by £1.8bn, bringing to £7.7bn the reduction in book value of its operations in Italy and Spain this year.
"We have faced headwinds from a combination of continued tough economic conditions, particularly in southern Europe, and an adverse European regulatory environment," said chief executive Vittorio Colao. "We have faced headwinds from a combination of continued tough economic conditions, particularly in southern Europe, and an adverse European regulatory environment," said the Vodafone chief executive, Vittorio Colao.
Regulation has been gradually reducing the cost of connections to mobile phones in recent years, bringing down service revenues for operators.Regulation has been gradually reducing the cost of connections to mobile phones in recent years, bringing down service revenues for operators.
Colao made no comment on Vodafone's discussions over selling all or part of the 45% stake in its US network to co-owner Verizon Communications.Colao made no comment on Vodafone's discussions over selling all or part of the 45% stake in its US network to co-owner Verizon Communications.
Vodafone ordinary final dividend will increase to 6.92p, a 7% increase this year and a 22% increase over the last three years. The firm said it would "at least maintain" the ordinary dividend per share at current levels. Vodafone's ordinary final dividend will increase to 6.92p, a 7% increase this year and a 22% rise over the past three years. The firm said it would "at least maintain" the ordinary dividend per share at current levels.
With results a slightly better than City forecasters had feared, shares remained flat at just under 198p during morning trading. With results slightly better than City forecasters had feared, shares remained flat at just under 198p during morning trading on Tuesday.
Operating profit was £12.3bn, comfortably above the top of the range set by the company last May. Vodafone guided that next year's number would be between £12bn and £12.8bn. Operating profit was £12.3bn, comfortably above the top of the range set by the company last May. Vodafone guided that profit next year would be between £12bn and £12.8bn.
Revenue from internet connections rose 13.8%, while major emerging markets remained buoyant, with India up nearly 11% and Turkey up 17%.Revenue from internet connections rose 13.8%, while major emerging markets remained buoyant, with India up nearly 11% and Turkey up 17%.
Vodafone said it would continue investing to build video-quality networks across Europe so that it could manage the high demand for data from smartphones, and extend 4G coverage across 40% of its networks in its top five European markets by March next year.Vodafone said it would continue investing to build video-quality networks across Europe so that it could manage the high demand for data from smartphones, and extend 4G coverage across 40% of its networks in its top five European markets by March next year.