Vodafone’s Adjusted Earnings Fell in Fiscal 1H16
Overview of Vodafone's Fiscal 1H16 Results
Vodafone’s adjusted earnings in fiscal 1H16
In the previous part of the series, we got a glimpse of the geographic diversification of operations and scale of Vodafone (VOD). We also mentioned that, globally, Vodafone had the fourth largest market capitalization after China Mobile (CHL), AT&T (T), and Verizon (VZ) as of November 27, 2015. Here, we’ll look at the company’s fiscal 1H16 performance. Vodafone’s adjusted profit fell by ~4.3% YoY (year-over-year) to reach ~667 million pounds in fiscal 1H16.
Meanwhile, the revenue of the telecom company fell by ~2.3% YoY to ~20.3 billion pounds during the period.
On a YoY basis, Vodafone’s margin expanded during fiscal 1H16. Vodafone’s EBITDA margin rose from ~28.4% in fiscal 1H15 to ~28.6% in fiscal 1H16. The telecom company’s EBITDA fell ~1.7% YoY to ~5.8 billion pounds during fiscal 1H16.
Vodafone’s guidance for fiscal 2016
Vodafone pushed up the lower side of the EBITDA guidance for fiscal 2016. According to the company, this EBITDA figure is expected in the range of 11.7 billion pounds to 12.0 billion pounds. According to the company, including Ono, Vodafone’s expected band for annual capital expenditure in pounds is between 8.5 billion and 9.0 billion. Also, the company expects to have a positive free cash flow, excluding the impact from restructuring costs, mergers and acquisitions, and buying spectrums during the period.
The PowerShares QQQ Trust (QQQ) had around 0.27% of its holdings in Vodafone at the end of September 2015.
Browse this series on Market Realist: