Vodafone FY 2011/12 results: Revenue growth improves, margins shakier

23 May 2012

Vodafone Europe’s revenue growth improved by 1.5ppts on a reported basis and by 0.3ppts on an underlying basis; given the deterioration in macroeconomic conditions, this is a strong result, and Vodafone extended its outperformance of competitors

Margins were weaker with European EBITDA margin dropping about 1ppt on an underlying basis in H2. SAC/SRCs were for once well under control, but a very small rise in ‘other’ costs pushed margins down; with revenue growth well below inflation, maintaining margins is a massive challenge

The Group’s strategy continues to be sound, and is validated by its competitive outperformance, but market conditions are likely to keep its revenue growth negative and margins slightly declining for the next year at least

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