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Vodafone reports another loss

The Vodafone group reported a first half loss of £5.1bn ($9.7bn) Monday after writing down the value of its German and Italian units.

The loss, which will prompt further questions about the company’s leadership, contrasts with a net profit of £2.77bn in the same period last year. The loss amounted to 8.88p per share and included an £8.1bn goodwill charge, Vodafone said. That charge related to Vodafone’s operations in Germany and Italy which the company blamed on “increased competition” in both markets and “regulatory pressures in Germany”.

Revenue for the period was £15.6bn, representing a rise of 6.9 per cent on the same period last year.

Despite the results, the company’s chief executive, Arun Sarin, remained confident. “These results show that Vodafone is on track to deliver on its key targets for the current financial year,” he said. “Competitive and regulatory pressures in the European region have been offset by strong performances in our developing markets and the United States.”

Vodafone reported an adjusted operating profit of £1bn in the US during the period, representing a rise of 31.5 per cent on the same period last year.

The company told Reuters Tuesday, that it was “highly unlikely” it will sell its 44 per cent stake in French mobile operator, SFR, to Vivendi. It did however, say that it would look at its 25 per cent stake in Swisscom Mobile “if there was a full offer put on the table”, Reuters quotes the company as saying.

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