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Date Posted: 22:44:11 05/27/03 Tue
Clear all Clippings Vodafone trims loss as its sales rise 33%
Heather Timmons The New York Times Wednesday, May 28, 2003
LONDON Vodafone Group PLC reported Tuesday that its annual loss narrowed, beating most analysts' expectations, as sales and cash flow increased.
.
The loss for the year to March 31 declined to £9.82 billion ($16.1 billion) from £16.2 billion the previous year. Sales rose 33 percent to £30.4 billion.
.
Vodafone said cash flow, or earnings before tax and depreciation, increased 26 percent to £12.7 billion as it increased its worldwide customers count by 18 percent.
.
The company had a net loss because it took a £14 billion charge to revalue several acquisitions, including its purchase of Mannesmann AG of Germany.
.
But Vodafone did not revalue its 3G, or third-generation mobile-phone licenses, despite the fact that many of its biggest competitors have done so. Last week, Vodafone's British rival mmO2 PLC said it had reduced the value of its 3G licenses by £9.7 billion.
.
Analysts said Vodafone's results showed a strong underlying business.
.
"I've got no problems with these numbers," said Arnab Roychowdhury, an analyst at Barclays Stockbrokers. "They're picking up a lot of customers, who are spending more per person."
.
During the year, the company introduced Vodafone Live, which provides mobile phone customers with new services such as music, games and photos.
.
As of March 31, Vodafone Live had 1 million customers.
.
Overall customer growth is expected to slow in 2003 to about 10 percent, the company said, because the mobile phone market is becoming more saturated.
.
This earnings presentation was the last time Vodafone's chief executive, Sir Christopher Gent, will publicly speak for the company. He said in December that he would step down this summer after having led Vodafone since 1997 and increasing its size tenfold through a string of acquisitions.
.
Gent took the occasion to chronicle the changes in the company's 15 years as a public company, noting that Vodafone now has 25 percent of mobile phone market share worldwide and operations in 28 countries.
.
Gent, 54, also reiterated his reasons for leaving. The company needs a younger chief executive, he said, who is more in touch with what customers want. "It's better to have someone running the company who has empathy" for what its users need, he said.
.
Gent will be replaced by Arun Sarin, who first joined the company in 1999 and has run its American and Asian operations. Sarin indicated Tuesday that he planned to focus on selling more products to existing customers.
.
"Don't expect acquisition and retention to grow faster than margins," he said. , The New York Times reported.
.
But Gent warned that "there is nothing definite here." Ripplewood will have to get funding for its offer, he said, "and there is no guarantee that they can do that." Vodafone would probably retain J-Phone Co., the subsidiary's profitable mobile-phone service, he said.
.
The sale would be worth about ¥260 billion ($2.2 billion), Japanese news media reported.
.
The Japanese cellular phone market has continued to grow through good and bad times. About 60 percent of the people in Japan, which has been in a deep economic slump for more than a decade, already have cell phones.
.
Japan Telecom, meanwhile, said Tuesday that it had swung back into profit in the financial year that ended in March, lifted by camera-phone services at J-Phone, Reuters reported.
.
Japan Telecom said it had posted a consolidated net profit of ¥79.5 billion, reversing a net loss of ¥65.97 billion a year earlier. Revenue grew 5.5 percent to ¥1.80 trillion.
< < Back to Start of Article LONDON Vodafone Group PLC reported Tuesday that its annual loss narrowed, beating most analysts' expectations, as sales and cash flow increased.
.
The loss for the year to March 31 declined to £9.82 billion ($16.1 billion) from £16.2 billion the previous year. Sales rose 33 percent to £30.4 billion.
.
Vodafone said cash flow, or earnings before tax and depreciation, increased 26 percent to £12.7 billion as it increased its worldwide customers count by 18 percent.
.
The company had a net loss because it took a £14 billion charge to revalue several acquisitions, including its purchase of Mannesmann AG of Germany.
.
But Vodafone did not revalue its 3G, or third-generation mobile-phone licenses, despite the fact that many of its biggest competitors have done so. Last week, Vodafone's British rival mmO2 PLC said it had reduced the value of its 3G licenses by £9.7 billion.
.
Analysts said Vodafone's results showed a strong underlying business.
.
"I've got no problems with these numbers," said Arnab Roychowdhury, an analyst at Barclays Stockbrokers. "They're picking up a lot of customers, who are spending more per person."
.
During the year, the company introduced Vodafone Live, which provides mobile phone customers with new services such as music, games and photos.
.
As of March 31, Vodafone Live had 1 million customers.
.
Overall customer growth is expected to slow in 2003 to about 10 percent, the company said, because the mobile phone market is becoming more saturated.
.
This earnings presentation was the last time Vodafone's chief executive, Sir Christopher Gent, will publicly speak for the company. He said in December that he would step down this summer after having led Vodafone since 1997 and increasing its size tenfold through a string of acquisitions.
.
Gent took the occasion to chronicle the changes in the company's 15 years as a public company, noting that Vodafone now has 25 percent of mobile phone market share worldwide and operations in 28 countries.
.
Gent, 54, also reiterated his reasons for leaving. The company needs a younger chief executive, he said, who is more in touch with what customers want. "It's better to have someone running the company who has empathy" for what its users need, he said.
.
Gent will be replaced by Arun Sarin, who first joined the company in 1999 and has run its American and Asian operations. Sarin indicated Tuesday that he planned to focus on selling more products to existing customers.
.
"Don't expect acquisition and retention to grow faster than margins," he said. , The New York Times reported.
.
But Gent warned that "there is nothing definite here." Ripplewood will have to get funding for its offer, he said, "and there is no guarantee that they can do that." Vodafone would probably retain J-Phone Co., the subsidiary's profitable mobile-phone service, he said.
.
The sale would be worth about ¥260 billion ($2.2 billion), Japanese news media reported.
.
The Japanese cellular phone market has continued to grow through good and bad times. About 60 percent of the people in Japan, which has been in a deep economic slump for more than a decade, already have cell phones.
.
Japan Telecom, meanwhile, said Tuesday that it had swung back into profit in the financial year that ended in March, lifted by camera-phone services at J-Phone, Reuters reported.
.
Japan Telecom said it had posted a consolidated net profit of ¥79.5 billion, reversing a net loss of ¥65.97 billion a year earlier. Revenue grew 5.5 percent to ¥1.80 trillion. LONDON Vodafone Group PLC reported Tuesday that its annual loss narrowed, beating most analysts' expectations, as sales and cash flow increased.
.
The loss for the year to March 31 declined to £9.82 billion ($16.1 billion) from £16.2 billion the previous year. Sales rose 33 percent to £30.4 billion.
.
Vodafone said cash flow, or earnings before tax and depreciation, increased 26 percent to £12.7 billion as it increased its worldwide customers count by 18 percent.
.
The company had a net loss because it took a £14 billion charge to revalue several acquisitions, including its purchase of Mannesmann AG of Germany.
.
But Vodafone did not revalue its 3G, or third-generation mobile-phone licenses, despite the fact that many of its biggest competitors have done so. Last week, Vodafone's British rival mmO2 PLC said it had reduced the value of its 3G licenses by £9.7 billion.
.
Analysts said Vodafone's results showed a strong underlying business.
.
"I've got no problems with these numbers," said Arnab Roychowdhury, an analyst at Barclays Stockbrokers. "They're picking up a lot of customers, who are spending more per person."
.
During the year, the company introduced Vodafone Live, which provides mobile phone customers with new services such as music, games and photos.
.
As of March 31, Vodafone Live had 1 million customers.
.
Overall customer growth is expected to slow in 2003 to about 10 percent, the company said, because the mobile phone market is becoming more saturated.
.
This earnings presentation was the last time Vodafone's chief executive, Sir Christopher Gent, will publicly speak for the company. He said in December that he would step down this summer after having led Vodafone since 1997 and increasing its size tenfold through a string of acquisitions.
.
Gent took the occasion to chronicle the changes in the company's 15 years as a public company, noting that Vodafone now has 25 percent of mobile phone market share worldwide and operations in 28 countries.
.
Gent, 54, also reiterated his reasons for leaving. The company needs a younger chief executive, he said, who is more in touch with what customers want. "It's better to have someone running the company who has empathy" for what its users need, he said.
.
Gent will be replaced by Arun Sarin, who first joined the company in 1999 and has run its American and Asian operations. Sarin indicated Tuesday that he planned to focus on selling more products to existing customers.
.
"Don't expect acquisition and retention to grow faster than margins," he said. , The New York Times reported.
.
But Gent warned that "there is nothing definite here." Ripplewood will have to get funding for its offer, he said, "and there is no guarantee that they can do that." Vodafone would probably retain J-Phone Co., the subsidiary's profitable mobile-phone service, he said.
.
The sale would be worth about ¥260 billion ($2.2 billion), Japanese news media reported.
.
The Japanese cellular phone market has continued to grow through good and bad times. About 60 percent of the people in Japan, which has been in a deep economic slump for more than a decade, already have cell phones.
.
Japan Telecom, meanwhile, said Tuesday that it had swung back into profit in the financial year that ended in March, lifted by camera-phone services at J-Phone, Reuters reported.
.
Japan Telecom said it had posted a consolidated net profit of ¥79.5 billion, reversing a net loss of ¥65.97 billion a year earlier. Revenue grew 5.5 percent to ¥1.80 trillion. LONDON Vodafone Group PLC reported Tuesday that its annual loss narrowed, beating most analysts' expectations, as sales and cash flow increased.
.
The loss for the year to March 31 declined to £9.82 billion ($16.1 billion) from £16.2 billion the previous year. Sales rose 33 percent to £30.4 billion.
.
Vodafone said cash flow, or earnings before tax and depreciation, increased 26 percent to £12.7 billion as it increased its worldwide customers count by 18 percent.
.
The company had a net loss because it took a £14 billion charge to revalue several acquisitions, including its purchase of Mannesmann AG of Germany.
.
But Vodafone did not revalue its 3G, or third-generation mobile-phone licenses, despite the fact that many of its biggest competitors have done so. Last week, Vodafone's British rival mmO2 PLC said it had reduced the value of its 3G licenses by £9.7 billion.
.
Analysts said Vodafone's results showed a strong underlying business.
.
"I've got no problems with these numbers," said Arnab Roychowdhury, an analyst at Barclays Stockbrokers. "They're picking up a lot of customers, who are spending more per person."
.
During the year, the company introduced Vodafone Live, which provides mobile phone customers with new services such as music, games and photos.
.
As of March 31, Vodafone Live had 1 million customers.
.
Overall customer growth is expected to slow in 2003 to about 10 percent, the company said, because the mobile phone market is becoming more saturated.
.
This earnings presentation was the last time Vodafone's chief executive, Sir Christopher Gent, will publicly speak for the company. He said in December that he would step down this summer after having led Vodafone since 1997 and increasing its size tenfold through a string of acquisitions.
.
Gent took the occasion to chronicle the changes in the company's 15 years as a public company, noting that Vodafone now has 25 percent of mobile phone market share worldwide and operations in 28 countries.
.
Gent, 54, also reiterated his reasons for leaving. The company needs a younger chief executive, he said, who is more in touch with what customers want. "It's better to have someone running the company who has empathy" for what its users need, he said.
.
Gent will be replaced by Arun Sarin, who first joined the company in 1999 and has run its American and Asian operations. Sarin indicated Tuesday that he planned to focus on selling more products to existing customers.
.
"Don't expect acquisition and retention to grow faster than margins," he said. , The New York Times reported.
.
But Gent warned that "there is nothing definite here." Ripplewood will have to get funding for its offer, he said, "and there is no guarantee that they can do that." Vodafone would probably retain J-Phone Co., the subsidiary's profitable mobile-phone service, he said.
.
The sale would be worth about ¥260 billion ($2.2 billion), Japanese news media reported.
.
The Japanese cellular phone market has continued to grow through good and bad times. About 60 percent of the people in Japan, which has been in a deep economic slump for more than a decade, already have cell phones.
.
Japan Telecom, meanwhile, said Tuesday that it had swung back into profit in the financial year that ended in March, lifted by camera-phone services at J-Phone, Reuters reported.
.
Japan Telecom said it had posted a consolidated net profit of ¥79.5 billion, reversing a net loss of ¥65.97 billion a year earlier. Revenue grew 5.5 percent to ¥1.80 trillion.
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Clear all Clippings Vodafone trims loss as its sales rise 33%