Telecommunications provider Vodafone has this morning released its half-yearly results, while at the same time announcing a 7.0% increase in its interim dividend, to 3.05p, along with the payment of a special dividend of 4p.
Nonetheless, the latter was already announced in July and itself reflects the receipt of a dividend from Verizon Wireless.
Total revenue at the group level rose 2.2% in organic terms, to £23.52bn, or by 4.1% in reported terms.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In greater detail, the group's organic service revenue rose by 1.3% in the second quarter, with a decrease of 1.2% in Europe but an advance of 8.2% in America and Asia Pacific.
Organic data revenue, meantime, increased 23.8% while enterprise revenue did so by another 2.6%.
The group has also highlighted "continued" strong momentum in emerging markets such as India, where service revenue rose by +18.4% or Turkey, which saw a +27.9% improvement.
First half EBITDA rose 2.3% to £7.5 bn, although its EBITDA margin fell 0.6 percentage points, to 32.0%.
Adjusted operating profit for the period has come in at £6.0bn, with the outfit now forecasting operating profits of between £11.4 and £11.8bn for the full year, in the upper part of its previous forecast.
Free cash flow generation was £2.6bn for the half year, with a target of between £6.0bn and £6.5bn confirmed for the full year.
Vodafone expects to pay a £2.0bn dividend at the beginning of 2012 and has already committed to a £4.0bn share repurchase programme.
According to the group's chief executive, Vittorio Colao, the firm continues to execute its strategy of concentrating on the highest growth and cash-generating business opportunities. At the same time, he believes that Vodafone has delivered on its commitment to, "crystallise value from our non-controlled assets through a successful programme of disposals and the announcement of a dividend from Verizon Wireless."
The British telecoms operator has become a favourite of UK pension schemes given its cash generation abilities and following British Petroleum's 'annus horribilis' last year, with the effect which that had on its dividend policy.
AB
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
