Nov 13, 2018

Vodafone posts loss after writing down asset value

Vodafone recorded a loss of €7.8bn in the first six months of the year after writing down the value of some of its assets as the company pledged to hold its dividend for the year. Nick Read, who was promoted to chief executive this year, unveiled a mixed set of numbers for the first half, his first since taking over from Vittorio Colao. Guidance for the year for adjusted earnings before interest, taxation, depreciation and amortisation was narrowed to 3 per cent from the wider range of 1 per cent to 5 per cent while it increased its outlook for free cash flow to €5.4bn from €5.2bn. Despite pressure to cut the dividend, Mr Read made good on his previous commitment to hold firm and match last year's pay out. Vodafone shares have been trading at nine year lows in the run-up to the results partly due to concerns over the dividend. The huge loss was triggered by a €3.5bn impairment charge to reflect the lower value of its Spanish, Romanian and Indian businesses.

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