Vodafone revenues drop, share price follows suit
- Vodafone Group total revenue dropped 3.6% year on year to 11.8 billion euros in the third quarter ended 31 December 2017, the mobile carrier announced on Thursday. The contraction comes on the back of the deconsolidation of Vodafone Netherlands and FX movements.
- Organic service revenue grew 1.1% to EUR 10.2 billion, a similar performance to the prior quarter (1.3%)
- Nearly two thirds of Vodafone revenues are generated in Europe where sales were down 2.8% yr/yr. Revenues in the Africa, Middle East & Asia Pacific (AMAP) region dropped 5.6%.
- Management confirmed its guidance for 2018. They project organic adjusted EBITDA growth of around 10%, implying a range of EUR 14.75 bn to EUR 14.95 bn at guidance exchange rates.
- Free cash flow pre-spectrum is expected to exceed EUR 5 billion.
- Shareholders do not like the decline in revenues; Vodafone’s share price dropped nearly 2% today and 6% so far this year.