Vodafone profits increase by 8.4%

Vodafone Group has posted an 8.4% increase in revenues to £44.5bn in the last financial year, boosted by making a series of cost-efficiencies including simplifying its marketing operations.

vodafone

In its results, posted today, Vittorio Colao, chief executive, says: “The specific responsibilities of group technology, group marketing and our local operating companies have been simplified, eliminating overlapping areas and coordination activities. We are also shifting progressively into incentive schemes which emphasise reward for competitive performance and cash generation.”

In April, Vodafone began a corporate review of its group marketing team following the departure of global brand director David Wheldon and global director of customer insight Andy Moore.

The company says it made an adjusted operating profit of £11.9bn, though service revenues declined worldwide in the last quarter.

The revenue increases were boosted by £1bn cost savings programme delivered one year ahead of schedule, partially used to finance growth initiatives and volume increases. New two-year £1bn cost programme, announced in November 2009, now
under execution.

Coalo adds: “Vodafone’s financial results exceeded our upgraded guidance on all measures. Revenue trends have improved again in Q4 driven by growth in mobile data and fixed broadband. Cost reduction targets were delivered ahead of schedule enabling commercial reinvestment to improve market share and further strengthen our technology platforms.”

Vodafone’s current marketing is hoping to boost its brand credentials and attract younger consumers in the underperforming UK market, under its new global positioning “Power to you”.

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