Vodafone reports FY loss of £14.9 billion |
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Published
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Tue, 30 May 2006 10:10
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LONDON - Vodafone Group PLC today reported a loss of £14.9 billion for the last year after writing down the value of key assets including German business Mannesmann, which was acquired by it in 2000.
Vodafone also incurred one-off costs of £23.5 billion, but said that trading was in line with its expectations and that it had acquired 21 million new customers. If the one-off costs were to be excluded, Vodafone made a profit of £8.7 billion last year as compared to £7.8 billion reported in the previous year. The company is also looking to cut 400 jobs at its office in Newbury, Berkshire in order to save costs.
The company is looking to save £170 million within the next three to five years by contracting out its IT and maintenance activities. Savings of £260 million are to be made from streamlining the supply chain and £100 million is to be saved by consolidating the existing data centers. Arun Sarin, Vodafone's chief executive remained upbeat despite the poor results and said that the company would be concentrating on growth in the emerging markets in the near future.
"Vodafone has met or exceeded expectations, outperforming its competitors in an increasingly challenging marketplace. We have restructured the group and updated our strategy and we will seize the opportunities provided by new technologies to continue delivering innovative services to our customers," Mr Sarin said.
He has already split the group's business activities into three zones namely Europe, Eastern Europe and affiliates, and New Businesses. Sarin has been under immense pressure due to the poor performance of the world's largest mobile company. In order to maintain his hold, Sarin has pulled Vodafone out of Japan and has restructured the company.
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Vodafone posts higher revenue, forecasts cautious year ahead 