dpa
London
British telecommunications company Vodafone reported on Tuesday that its profit attributable to owners of the parent for the six months ending 30 September 2024 was €1.06 billion ($1.13 billion) or 3.97 cents per share, compared to a loss of €346 million or 1.28 cents per share in the prior year.
The return to profit in the latest period was primarily due to higher operating profit, combined with lower net financing costs. Adjusted basic earnings per share was 4.84 cents, compared to 3.72 cents in the prior year.
The increase was primarily due to lower adjusted net financing costs. Operating profit increased by 28.3 percent to €2.38 billion from the prior year, primarily driven by a €0.7 billion gain on the disposal of an 18 percent stake in Indian telecommunications company Indus Towers in the first quarter.
Adjusted EBITDAaL (earnings before interest, taxes, depreciation and amortization, but after lease obligations) increased by 3.8 percent on an organic basis in the first half, supported by service revenue growth and lower energy costs in Europe.
Total revenue for the period increased by 1.6 percent to €18.28 billion from last year, as service revenue growth was partially offset by adverse foreign exchange movements.
The company still expects adjusted EBITDAaL to be about €11 billion and adjusted free cash flow of at least €2.4 billion for fiscal year 2025.
Vodafone said it is also progressing with 3,100 role reductions announced in Germany.
Vodafone said its board targets a full-year dividend of 4.5 cents per share for fiscal year 2025, with an ambition to grow it over time, and had declared an interim dividend of 2.25 cents per share compared to 4.5 cents last year.
The board also approved a capital return through share buybacks of up to €2 billion of the proceeds from the sale of Vodafone Spain.
The board anticipates the opportunity for further share buybacks of up to €2 billion following the completion of the sale of Vodafone Italy, which is expected to occur in early 2025.
The board announced an interim dividend per share of 2.25 cents compared to 4.5 cents paid last year.
The ex-dividend date for the interim dividend is November 21 for ordinary shareholders, the record date is November 22, and the dividend is payable on February 7.