Mobile phone giant Vodafone has reported a first-half loss after its revenues were hit by tough market conditions in southern Europe, although it said full-year profits should be at the top end of forecasts.
The group reported a pre-tax loss of £492 million for the six months to 30 September, compared with a £6.6 billion profit a year earlier, on revenues 7.4 per cent lower at £22.8bn.
Chief executive Vittorio Colao said Vodafone had taken a £5.9bn hit after writing down the value of its business in Italy and Spain.
He added: “We now expect adjusted operating profit for the full year to be in the upper half of the range of £11.1bn to £11.9bn indicated in May.”
However, Colao said free cash flow is forecast to be in the lower half of the £5.3bn to £5.8bn range previously indicated.
The group has been helped by the strong performance of its joint venture Verizon Wireless in the US, and expects to get a £2.4bn dividend from the business by the end of the year.
Shareholders will receive an interim dividend of 3.27p per share, up 7.2 per cent over last year’s payout, and Vodafone also said it would start a £1.5bn share buyback programme after receiving the Verizon Wireless dividend.