LONDON (Alliance News) - Vodafone PLC Tuesday posted earnings and revenue ahead of expectations for its recently ended financial year, and delivered a return to organic growth in its fourth quarter as it saw "increasing signs of stabilisation" in many of its European markets.
For the year to end-March Vodafone reported earnings before interest, tax, depreciation and amortisation of GBP11.92 billion, up from GBP11.08 billion a year before, and beating analyst expectations of GBP11.87 billion.
This was on group revenue of GBP42.22 billion, increased from GBP38.35 billion a year before, and ahead of analyst expectations of GBP41.89 billion.
Group organic service revenue declined 1.6% for the year as a whole. However, organic service revenue returned to growth in the fourth quarter, rising 0.1%, which Vodafone attributed to steady recovery in Europe and continued good growth in Africa, the Middle East and Asia.
The company said it had continued to make good progress with its GBP19 billion investment programme 'Project Spring', with 63% of its mobile network build plans completed.
The integration of its acquisitions of Kabel Deutschland and Grupo Corporative Ono SA are on track, Vodafone said, with synergies in line with its expectations.
For its current financial year Vodafone is guiding Ebitda in the range of between GBP11.5 billion and GBP12.0 billion, and to be free cash flow positive after all capital expenditure, before mergers and acquisitions, spectrum and restructuring costs.
Vodafone proposed a final dividend of 7.62 pence per share, taking its total dividend for the year to 11.22 pence, up from 11.0 pence a year before. The company reiterated its intention to increase its full-year dividend annually, which it said demonstrates its confidence for future cash flow generation.
"With the assets and skills we have today, further enhanced by the completion of Project Spring, we will be strongly positioned to provide ever improving services to customers and seize these opportunities," said Chief Executive Vittorio Colao in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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