Vodafone Annual Report 2012-2013 | Quarterly Earnings Figures Of Last Five Years

Vodafone Group plc is a British multinational telecommunications company that started as subsidiaries of Racal Electronics Plc in 1982 with Vodafone brand. It was the second largest mobile communications company in 2011 both by subscriber base and revenue with presence of own network in over 30 countries and with shared or network in partnership in over 40 additional countries. The company as per record of July 6, 2012, has a market capitalization of approximately £89.1 billion. The Company provides services to fixed line, mobile voice, messaging and data. Vodafone Cloud allows users to store their personal digital content, such as, photos, contacts, videos in the Vodafone network and it can be accessed while on move with any connected devices. Vodafone One Net combines mobiles and landlines with a communication solution. Vodafone Secure Device Manager helps users to manage many of their smart devices. Vodafone India is the third-largest contributor to Vodafone Group Plc.’s in revenue. The Company operates in Continental Europe, the United Kingdom, Asia Pacific, the United States, Africa and the Middle East through its subsidiaries, associates, and investments.

Vodafone Annual Sales, Annual Revenue, Annual Profits

Group revenue increased 1.2% to £46.4 billion in March 2012 with a strong demand for data services and further voice penetration in emerging markets. However, total revenue dropped by 4.25% in March end 2013. In last September, Vodafone decided to sell its 45% stake in Verizon for $130 billion in stock and cash. The company bought this stake about 10 years ago for $70 billion. The deal is expected to be closed by first quarter of 2014. On November 12, 2013, the company has decided to invest £7 billion to revamp the deteriorating operations in core European countries. The company has further decided to invest another £1 billion to £6  billion to strengthen its business around the world with a commitment on additional capital expenditure of £19 billion for sensible acquisition in its main market.

The figures shown in the table below shows that, gain in the sale of investment inflated the net income figures of other two previous year ends on March 2011 and 2012. The main reason of lower Net Income in the last year end is the reason for drastic drop in the Earnings from Continuing Operations during the year.

Currency in Million (British Pound)

March 31, 2013

March 31, 2012

March 31, 2011

March 31, 2010

Revenues 44,445.0 46,417.0 45,884.0 44,472.0
Total Revenues 44,445.0 46,417.0 45,884.0 44,472.0
Cost Of Goods Sold 30,505.0 31,546.0 30,814.0 29,439.0
Gross Profit 13,940.0 14,871.0 15,070.0 15,033.0
Total Selling General & Admin Expenses 8,457.0 8,302.0 8,367.0 8,309.0
Other Operating Expenses 5.0 10.0 16.0 -114.0
Total Other Operating Expenses 8,462.0 8,312.0 8,383.0 8,195.0
Operating Income 5,478.0 6,559.0 6,687.0 6,838.0
Interest Expense -1,557.0 -1,644.0 -1,225.0 -1,263.0
Interest And Investment Income 305.0 456.0 1,309.0 716.0
Total Other Non-Operating Expenses 6,256.0 4,513.0 5,858.0 4,483.0
Other Non-Operating Income (Expenses) -221.0 -450.0 799.0 -259.0
Impairment Of Goodwill -7,227.0 -4,050.0 -6,150.0 -2,100.0
Gain (Loss) On Sale Of Investments 3,715.0 3,019.0
EBT, Including Unusual Items 3,255.0 9,549.0 9,498.0 8,674.0
Income Tax Expense 2,582.0 2,546.0 1,628.0 56.0
Minority Interest In Earnings -244.0 -46.0 98.0 27.0
Earnings From Continuing Operations 673.0 7,003.0 7,870.0 8,618.0
Net Income 429.0 6,957.0 7,968.0 8,645.0
Net Income To Common Including Extra Items 429.0 6,957.0 7,968.0 8,645.0
Net Income To Common Excluding Extra Items 429.0 6,957.0 7,968.0 8,645.0

Data Source:: Businessweek

Vodafone Quarterly Earnings

The company reported revenue worse than expected in the middle of February 2013 and attributed the reason to the difficult condition in European market although the emerging markets continued to grow but at a low pace due to competitive pressures and macroeconomic reasons. The market in Southern Europe was worst hit and dropped by £2.3billion (11.9%). This was followed by Italy 2.6% to £10.37 billion, Spain by 11.3%. On the up side, Asia Pacific, Middle East and Africa service revenue jumped 2.7% to £3.14 billion.

The revenue of previous year end £46,417 million dropped to £44,445 million on March 2013 year end and did not show any considerable sign of recovery  in the last twelve month period ended September 30, 2013 (£44,908 million). A slight rise in the revenue in TTM figure is again associated with drop in gross profit margin. However, the increase in Operating Income and Net Income have lifted the Earnings per Share and Book Value per share of the company on September end 2013 (TTM). These good gains consequently have also improved the Net Margin, Return on Asset and Return on Equity percentages. The Interest Coverage (6.64) and Book Value per Share ($27.87) had almost came back to its previous level.

Financials TTM March 2013 March 2012 March 2011 March 2010 March 2009
Revenue GBP Mil

44,908

44,445

46,417

45,884

44,472

41,017

Gross Margin %

30.5

31.4

32.0

32.8

33.8

37.0

Operating Income GBP Mil

10,139

4,728

11,187

5,596

9,480

5,857

Operating Margin %

22.6

10.6

24.1

12.2

21.3

14.3

Net Income GBP Mil

20,366

429

6,957

7,968

8,645

3,080

Earnings Per Share GBP

4.14

0.09

1.37

1.51

1.64

0.58

Dividends GBP

0.99

0.96

0.89

0.88

0.78

0.74

Payout Ratio %

23.9

64.9

58.3

47.9

126.5

Shares Mil

4,918

4,943

5,096

5,275

5,285

5,297

Book Value Per Share USD

27.87

22.10

24.73

27.28

25.86

22.66

             
Profitability            
Tax Rate %

79.32

26.66

17.14

0.65

26.47

Net Margin %

45.35

0.97

14.99

17.37

19.44

7.51

Asset Turnover (Average)

0.32

0.31

0.32

0.30

0.29

0.29

Return on Assets %

14.74

0.30

4.78

5.17

5.58

2.20

Financial Leverage (Average)

1.75

2.00

1.81

1.73

1.74

1.77

Return on Equity %

26.67

0.58

8.46

8.96

9.79

3.75

Return on Invested Capital %

17.28

-0.76

4.77

5.26

5.42

1.59

Interest Coverage

6.64

2.93

6.41

7.35

6.21

3.50

             

Data Source::: Morningstar

Here is a synopsis of few recent key financial facts of the Vodafone Company:

Profitability Profit Margin (TTM) 45.35%
  Operating Margin (TTM) 11.43%
Management Effectiveness Return on Assets 2.32 %
  Return on Equity (TTM) 26.70 %
Income Statement Revenue (TTM) $72.18 Billion
  Revenue Per Share (TTM) $1.48
  Quarterly Revenue Growth (YOY): 2.50 %
  Quarterly Earnings Growth (YOY) N/A
  Gross Profit (TTM) $21.18 billion
Balance Sheet Current Ratio (Most recent Quarter) 1.67
  Book Value Per Share (Most recent Quarter)          $2.76

TTM= Trailing Twelve Months (As of Sep 30, 2013) 

Data Source:: Yahoo Finance

 

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Sandra
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