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UK’s Vodafone suffers 70% H1 profit slump

UK’s Vodafone suffers  70% H1 profit slump
Vodafone's profits plunged in the first half, hit by much lower one-off tax gains and costs linked to a series of acquisitions, but still beat analysts' expectations, the British mobile phone giant said on Tuesday.

Net profit dived 70 percent to $8.589 billion in the six months ending 30 September, compared with the equivalent period one year earlier, the world's second-largest mobile operator said in a statement.

But its share price jumped in early deals in London as investors cheered the better-than-expected result and news that Vodafone has upgraded its full-year profits forecast, traders said.

The British group, second only to China Mobile in terms of subscriber numbers, is snapping up companies after last year selling its 45-percent stake in Verizon Wireless to Verizon for $130 billion, clinching one of the biggest transactions in global corporate history.

Vodafone has since bought Spanish cable firm Ono and Kabel Deutschland (KDG), the largest cable operator in Germany. Vodafone shares were up 4.71 percent to 217.5 pence in morning deals on London's FTSE 100 index, which was up 0.12 percent at 6,619.18 points.

Meanwhile, Vodafone India reported an 11.7 per cent growth in its revenue at Rs 20,746.9 crore for the April-September quarter of this fiscal on the back of data revenues, customer additions and stable pricing. The company had reported a total revenue of Rs 18,571.1 crore in the same period last fiscal.

The data segment now contributes 13.5 per cent to service revenues of the company.

'We have delivered a healthy double digit revenue growth driven by strong customer additions and robust growth in data, 'Vodafone India MD and CEO Marten Pieters said here. The average revenue per minute for the company stood at 49.9 paisa and average revenue per user at Rs 200.

Vodafone has a network of over 1,24,000 sites. The company made a capital expenditure of Rs 3,509.1 crore for the half yearly period (April-September) of  fiscal 2014-15.


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