LONDON: British mobile phone giant Vodafone yesterday said that it surged back into first-half profit on a huge taxation credit, and pledged to invest after the sale of its US division.
Earnings after taxation stood at £17.95bn ($28.6bn) in the six months to September 30, boosted by a tax credit of almost £15bn, it said in a results statement.
Vodafone had suffered a net loss of £1.98bn in the same part of the previous fiscal year, when the group was rocked by impairment charges in indebted eurozone nations Spain and Italy.
The London-listed group is, meanwhile, using some of the proceeds from its recent blockbuster Verizon deal to improve network quality and speed across Europe.
Vodafone said that it will invest £7bn to boost businesses in key European and emerging markets, following its gigantic $130bn deal to sell its US joint-venture stake to partner Verizon. That compared with its previous plans to invest £6bn. Chief Executive Vittorio Colao added that the group also hoped to reward its shareholders for their loyalty.
The group had agreed the deal in September with Verizon, clinching one of the biggest transactions in global corporate history. One month later, Vodafone completed a ¤7.7bn ($10bn) takeover of Kabel Deutschland — the largest cable operator in Germany — as it sought to grow in Europe.
Vodafone said revenues rose 1.2 percent to £22.03bn in the first half, despite “tough” trade in Europe, as emerging markets continued to deliver growth.AFP
