UK mobile phone giant Vodafone has announced that group net profits almost trebled to £8.6 billion in the 12 months to March 31.
The steep rise, which compared with ┬ú3.07 billion pounds for the same period a year earlier, is partly thanks to cutting costs and increasing sales of VodafoneÔÇÖs broadband internet services.
Revenues for the year rose 8.4 per cent, to £44.5 billion, thanks to favourable currency exchanges.
The company also said that Verizon Wireless, its operation in the US, posted another set of strong results for the financial year, with service revenue growth of 6.3 per cent.
Commenting on the results, Vittorio Colao, VodafoneÔÇÖs chief executive officer, said: ÔÇ£VodafoneÔÇÖs financial results exceeded our upgraded guidance on all measures. Revenue trends have improved again in Q4 driven by growth in mobile data and fixed broadband. Cost reduction targets were delivered ahead of schedule enabling commercial reinvestment to improve market share and further strengthen our technology platforms.
ÔÇ£Free cash flow of ┬ú7.2 billion and confidence in VodafoneÔÇÖs prospects have enabled us to increase dividends by 7% and to target 7% per annum growth in total dividends per share for the next three years.ÔÇØ
He concluded: ÔÇ£We are creating a stronger Vodafone, which is positioned to return to revenue growth during the 2011 financial year, as economic recovery should benefit our key markets.ÔÇØ
The Newbury, Berkshire-based group guided that adjusted operating profit would be in the range of £11.2 billion to £12 billion at the end of the current financial year.
Quarter one results are expected to report a 150 per cent jump in profits. Analysts have predicted that the group will report first quarter profits of £10.4 billion, compared with £4.1 billion for the same period in 2009.
Vodafone is expected to report quarter one growth in Europe as it reveals sales figures for the iPhone for the first timeÔÇöwith an expected figure of 500,000 handsets sold since Vodafone first began offering the device.
Vodafone is the world's biggest mobile telecommunications network company based on revenue, with operations in 31 countries and partner networks in a further 40. It has a significant presence in Europe, the Middle East, Africa, Asia Pacific and the US.
In March 2009, the company announced a pan-European collaboration with SpainÔÇÖs Telefonica to share network infrastructure in Germany, Spain, Ireland and the UK.
As of 31 December 2009, the Vodafone had 333 million customers worldwide.
