Vodafone Posts HY Profit

(RTTNews) - Vodafone Group Plc (VOD.L, VOD) reported that its profit attributable to owners of the parent for six-month ended 30 September 2024 was 1.06 billion euros or 3.97 cents per share compared to a loss of 346 million euros or 1.28 cents per share in the prior year. The return to profit in the latest period was primarily due to higher operating profit, combined with lower net financing costs.

Adjusted basic earnings per share was 4.84 eurocents, compared to 3.72 eurocents in the prior year. The increase was primarily due to lower adjusted net financing costs. Operating profit increased by 28.3% to 2.38 billion euros from the prior year, primarily driven by a 0.7 billion euros gain on the disposal of an 18% stake in Indus Towers in the first-quarter.

Adjusted EBITDAaL increased by 3.8% on an organic basis in the first-half, supported by service revenue growth and lower energy costs in Europe.

Total revenue for the period increased by 1.6% to 18.28 billion euros from last year, as service revenue growth was partially offset by adverse foreign exchange movements.

The company still expects adjusted EBITDAaL to be about 11 billion euros and Adjusted free cash flow of at least 2.4 billion euros for fiscal year 2025.

Vodafone said it also progressing with the 3,100 role reductions announced in Germany.

Vodafone Board targets a full year dividend of 4.5 eurocents per share for fiscal year 2025, with an ambition to grow it over time, and has declared an interim dividend of 2.25 eurocents per share compared to 4.50 eurocents last year.

The Board also approved a capital return through share buybacks of up to 2.0 billion euros of the proceeds from the sale of Vodafone Spain. The Board anticipates the opportunity for further share buybacks of up to 2.0 billion euros following the completion of the sale of Vodafone Italy, which is expected to occur in early 2025.

The Board has announced an interim dividend per share of 2.25 eurocents compared to 4.50 eurocents paid last year. The ex-dividend date for the interim dividend is 21 November 2024 for ordinary shareholders and 22 November 2024 for ADR holders, the record date is 22 November 2024 and the dividend is payable on 7 February 2025.

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