LONDON (Alliance News) - FTSE 100 telecommunications firm Vodafone Group PLC on Tuesday reported organic earnings growth came in above guidance, while also saying Chief Executive Vittorio Colao will depart later this year.
Total revenue for the year ended March 31 was down 2.2% to EUR46.57 billion, "primarily due to the deconsolidation of Vodafone Netherlands and FX movements".
Adjusted earnings before interest, tax, depreciation and amortisation rose 12% on an organic basis to EUR14.73 billion from EUR14.15 billion.
The Ebitda growth was above the company's revised guidance range of around 10%, while free cash flow pre-spectrum came in at EUR5.6 billion, delivering on its target to exceed EUR5 billion.
Pretax profit rose to EUR3.88 billion from EUR2.79 billion last year.
Organic service revenue was up 1.6%, with fourth quarter growth of 1.4%, showing good momentum in data, fixed/convergence and Enterprise.
The blue-chip firm declared a final dividend of 10.23 cents, up 2.0%, bringing its total payout for the year to 15.07 cents compared to last year's 14.77 cents.
"We expect to sustain our profit growth in the year ahead, despite the arrival of a new entrant in Italy and competitive pressure in Spain, supported by the third year in a row of lower net operating costs," said CEO Colao.
Looking ahead, Vodafone expects to grow adjusted organic Ebitda by 1% to 5%, excluding the impact of UK handset financing in both years, and the significant benefit in the prior year from regulatory settlements in the UK and a legal settlement in Germany.
Based on guidance FX rates, and under IAS18 accounting standards, this implies an adjusted Ebitda range of EUR14.15 billion to EUR14.65 billion for the year.
Separately, Vodafone said that, effective October 2018, CEO Colao will be succeeded by Chief Financial Officer Nick Read. Colao was appointed CEO in July 2008.
At the firm's annual general meeting on July 27, Deputy CFO Margherita Della Valle will succeed Read as CFO and will join the board, while Read will become CEO-designate.
Read was appointed CFO and joined the Vodafone board in April 2014. He was previously the company's chief executive for the Africa, Middle East and Asia Pacific region.
Vodafone (VOD)