Investment earnings in the network. Network Marketing
Shares in the stock dropped 4. The latest charge takes the total impairment figure for Vodafone in the last four years to To fight back, Vodafone has stepped up spending on its network - the first among its rivals Telefonica, Deutsche Telekom and Orange to boost its investment plans.
All have all reported lower profits due to competition and the need to rebuild.
But before the spending and improvements can kick in, Vodafone has suffered particularly poor revenues in Germany, Italy and other European markets and said on Tuesday it had been forced to write down the value of its assets across Europe due to lower projected cash flows. It has bought cable operators in Germany and Spain to increase the range of services it can sell - betting, like its rivals, on fibre-optic networks and packages of services combining mobile and fixed-line phone, high-speed internet and TV to attract customers and boost future growth.
A man speaks on his mobile phone as he walks past logos of Vodafone painted on a roadside wall in Kolkata May 20, The forecast for was well below the average expectations of We reiterate our Neutral recommendation.
That had been expected however and was largely overlooked due to the weaker than expected earnings outlook. Colao said the highlights for the year came from India and its African unit Vodacom, where an increasing number of customers are using data, and where prices have held up. Germany and Italy were deemed to be particularly difficult, while Britain and Spain showed some signs of improvement.
Colao said Italy had turned highly competitive again in recent months and that Vodafone investment earnings in the network respond to the more aggressive tariffs. Group organic service revenue for the fourth quarter fell by 3.
For the year, organic service revenue - which strips out items such as handset sales, currency movements and acquisitions - was down 4. Shares in the group were down 4.