Form 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rules 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Dated May 24, 2007
VODAFONE GROUP
PUBLIC LIMITED COMPANY
(Exact name of registrant as specified in its charter)
VODAFONE HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE,
RG14 2FN, ENGLAND (Address of principal
executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
|
Form 20-F |
ü |
|
Form 40-F |
|
|
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
|
Yes |
|
|
No |
ü |
|
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
This Report on Form 6-K contains a news release issued by Vodafone Group Plc on May 23, 2007, entitled INFORMATION RELATING TO PRELIMINARY RESULTS .
23 May 2007
Vodafone Group Plc (Vodafone) is publishing today additional information to assist investors and analysts in their understanding of Vodafones results for the year ended 31 March 2007 and outlook statement for the year ending 31 March 2008 (2008 financial year) to be announced on 29 May 2007.
Regional structure
In April 2006, Vodafone announced a revised organisational structure, principally aimed at creating a Europe Region and an Eastern Europe, Middle East and Africa, Asia, Pacific and Affiliates (EMAPA) Region, effective from 1 May 2006.
Arcor, the Groups fixed line business in Germany, was managed independently from these two regions and therefore financial information for Arcor was presented separately. With effect from October 2006, Arcor has been managed within the Europe Region and consequently the preliminary results will present segmental financial information, including comparative information, for the Group in accordance with this structure.
Certain unaudited comparative information for the year ended 31 March 2006 and the six months ended 30 September 2006 is provided below on this basis.
Basis for outlook statement
The Group has previously stated that its outlook statement on revenue and profitability will move from a proportionate basis to a statutory basis with effect for the 2008 financial year. The outlook for profitability will be based on adjusted operating profit, which is representative of all the Groups businesses, rather than statutory EBITDA, which excludes the results from associates. There will be no change in basis for capital expenditure or cash flow. The Groups outlook will reflect current expectations for average foreign exchange rates for the 2008 financial year.
Accordingly, the Group will provide an outlook statement based on the following measures and in the format illustrated:
|
Group revenue |
£ to billion |
|
|
|
|
Group adjusted operating profit |
£ to billion |
|
|
|
|
Capitalised fixed asset additions |
£ to billion |
|
|
|
|
Free cash flow |
£ to billion |
The Group will provide an estimate for total depreciation and amortisation. The outlook for free cash flow and capitalised fixed asset additions will be stated including the impact of any known spectrum or licence purchases only.
Following completion of the Hutchison Essar acquisition on 8 May 2007, its results will be consolidated and reflected in the outlook statement from that date.
For further information:
Vodafone Group |
|
|
Investor Relations |
Media Relations |
|
Tel: +44 (0) 1635 664447 |
|
Tel: +44 (0) 1635 664444 |
The financial information contained in this document is for convenience only and does not contain sufficient information to allow a full understanding of the historical results and state of affairs of Vodafone and the Vodafone Group. For more detailed information, including definitions of terms, regarding the financial results of the Vodafone Group for the financial periods referred to in this announcement, please refer to Vodafones Annual Report for the year ended 31 March 2006 or Vodafones interim results announcement for the six months ended 30 September 2006 relating to such financial period, as appropriate, which in each case can be found on our website (www.vodafone.com).
TRADING RESULTS
SIX MONTHS ENDED 30 SEPTEMBER 2006
|
|
Europe(1) |
|
EMAPA |
|
Common |
|
Eliminations |
|
Group |
|
|
|
|
|
|
|
functions |
|
|
|
|
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice revenue |
|
8,968 |
|
2,436 |
|
- |
|
(34 |
) |
11,370 |
|
Messaging revenue(2) |
|
1,458 |
|
331 |
|
- |
|
(3 |
) |
1,786 |
|
Data revenue(2) |
|
603 |
|
56 |
|
- |
|
(9 |
) |
650 |
|
Fixed line operators and DSL revenue |
|
683 |
|
34 |
|
- |
|
- |
|
717 |
|
Total service revenue |
|
11,712 |
|
2,857 |
|
- |
|
(46 |
) |
14,523 |
|
Acquisition revenue |
|
466 |
|
176 |
|
- |
|
- |
|
642 |
|
Retention revenue |
|
174 |
|
8 |
|
- |
|
- |
|
182 |
|
Other revenue |
|
132 |
|
34 |
|
86 |
|
(5 |
) |
247 |
|
Total revenue |
|
12,484 |
|
3,075 |
|
86 |
|
(51 |
) |
15,594 |
|
Interconnect costs |
|
(1,880 |
) |
(520 |
) |
- |
|
46 |
|
(2,354 |
) |
Other direct costs |
|
(899 |
) |
(353 |
) |
- |
|
5 |
|
(1,247 |
) |
Acquisition costs |
|
(1,243 |
) |
(313 |
) |
- |
|
- |
|
(1,556 |
) |
Retention costs |
|
(763 |
) |
(91 |
) |
- |
|
- |
|
(854 |
) |
Operating expenses |
|
(2,765 |
) |
(698 |
) |
122 |
|
- |
|
(3,341 |
) |
EBITDA |
|
4,934 |
|
1,100 |
|
208 |
|
- |
|
6,242 |
|
Acquired intangibles amortisation |
|
(8 |
) |
(189 |
) |
- |
|
- |
|
(197 |
) |
Purchased licence amortisation |
|
(443 |
) |
(24 |
) |
- |
|
- |
|
(467 |
) |
Depreciation and other amortisation |
|
(1,408 |
) |
(364 |
) |
(72 |
) |
- |
|
(1,844 |
) |
Share of result in associates |
|
2 |
|
1,405 |
|
- |
|
- |
|
1,407 |
|
Adjusted operating profit |
|
3,077 |
|
1,928 |
|
136 |
|
- |
|
5,141 |
|
Adjustments for: |
|
|
|
|
|
|
|
- |
|
|
|
- Non-operating income of associates |
|
- |
|
6 |
|
- |
|
- |
|
6 |
|
- Impairment losses |
|
(8,100 |
) |
- |
|
- |
|
- |
|
(8,100 |
) |
- Other income and expense |
|
- |
|
- |
|
1 |
|
- |
|
1 |
|
Operating profit/(loss) |
|
(5,023 |
) |
1,934 |
|
137 |
|
- |
|
(2,952 |
) |
TRADING RESULTS
YEAR ENDED 31 MARCH 2006
|
|
Europe(1) |
|
EMAPA |
|
Common |
|
Eliminations |
|
Group |
|
|
|
|
|
|
|
functions |
|
|
|
|
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice revenue |
|
17,827 |
|
3,636 |
|
- |
|
(58 |
) |
21,405 |
|
Messaging revenue(2) |
|
2,836 |
|
454 |
|
- |
|
(1 |
) |
3,289 |
|
Data revenue(2) |
|
1,023 |
|
86 |
|
- |
|
(11 |
) |
1,098 |
|
Fixed line operators and DSL revenue |
|
1,271 |
|
19 |
|
- |
|
- |
|
1,290 |
|
Total service revenue |
|
22,957 |
|
4,195 |
|
- |
|
(70 |
) |
27,082 |
|
Acquisition revenue |
|
1,018 |
|
277 |
|
- |
|
- |
|
1,295 |
|
Retention revenue |
|
434 |
|
14 |
|
- |
|
- |
|
448 |
|
Other revenue |
|
324 |
|
68 |
|
145 |
|
(12 |
) |
525 |
|
Total revenue |
|
24,733 |
|
4,554 |
|
145 |
|
(82 |
) |
29,350 |
|
Interconnect costs |
|
(3,739 |
) |
(794 |
) |
- |
|
70 |
|
(4,463 |
) |
Other direct costs |
|
(1,666 |
) |
(442 |
) |
- |
|
12 |
|
(2,096 |
) |
Acquisition costs |
|
(2,501 |
) |
(467 |
) |
- |
|
- |
|
(2,968 |
) |
Retention costs |
|
(1,752 |
) |
(139 |
) |
- |
|
- |
|
(1,891 |
) |
Operating expenses |
|
(5,243 |
) |
(1,053 |
) |
130 |
|
- |
|
(6,166 |
) |
EBITDA |
|
9,832 |
|
1,659 |
|
275 |
|
- |
|
11,766 |
|
Acquired intangibles amortisation |
|
(2 |
) |
(155 |
) |
- |
|
- |
|
(157 |
) |
Purchased licence amortisation |
|
(884 |
) |
(63 |
) |
- |
|
- |
|
(947 |
) |
Depreciation and other amortisation |
|
(3,000 |
) |
(602 |
) |
(72 |
) |
- |
|
(3,674 |
) |
Share of result in associates |
|
5 |
|
2,398 |
|
8 |
|
- |
|
2,411 |
|
Adjusted operating profit |
|
5,951 |
|
3,237 |
|
211 |
|
- |
|
9,399 |
|
Adjustments for: |
|
|
|
|
|
- |
|
- |
|
|
|
- Non-operating income of associates |
|
- |
|
17 |
|
- |
|
- |
|
17 |
|
- Impairment losses |
|
(23,515 |
) |
- |
|
- |
|
- |
|
(23,515 |
) |
- Other income and expense |
|
3 |
|
- |
|
12 |
|
- |
|
15 |
|
Operating profit/(loss) |
|
(17,561 |
) |
3,254 |
|
223 |
|
- |
|
(14,084 |
) |
Notes: |
||
(1) |
|
Within the Europe region, certain revenue and costs relating to Arcor have been reclassified. All prior periods have been adjusted accordingly. The reclassification had no effect on total revenue, EBITDA or adjusted operating profit. |
(2) |
|
Certain revenue relating to content delivered by SMS and MMS has been reclassified from messaging revenue to data revenue. All prior periods have been adjusted accordingly. |
REGIONAL ANALYSIS
|
|
Revenue |
|
|
EBITDA |
|
|
Adjusted operating profit |
|
|
Capitalised fixed asset additions |
|
|
Free cash flow(1) |
|
||||||||||
|
|
Six months ended |
|
Year |
|
|
Six months |
|
Year |
|
|
Six months ended |
|
Year |
|
Six months ended |
|
Year |
|
Six months ended |
|
Year |
|
||
|
|
£m |
|
£m |
|
|
£m |
|
£m |
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
||
EUROPE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Germany |
|
2,827 |
|
5,754 |
|
|
1,263 |
|
2,703 |
|
|
724 |
|
1,496 |
|
198 |
|
592 |
|
990 |
|
2,167 |
|
||
Italy(2) |
|
2,174 |
|
4,363 |
|
|
1,128 |
|
2,270 |
|
|
839 |
|
1,672 |
|
184 |
|
541 |
|
878 |
|
1,808 |
|
||
Spain |
|
2,268 |
|
3,995 |
|
|
813 |
|
1,373 |
|
|
585 |
|
968 |
|
213 |
|
502 |
|
432 |
|
958 |
|
||
UK |
|
2,549 |
|
5,048 |
|
|
785 |
|
1,623 |
|
|
318 |
|
698 |
|
305 |
|
665 |
|
393 |
|
942 |
|
||
Arcor |
|
706 |
|
1,320 |
|
|
126 |
|
228 |
|
|
83 |
|
139 |
|
76 |
|
129 |
|
(16 |
) |
56 |
|
||
Greece |
|
636 |
|
1,233 |
|
|
250 |
|
470 |
|
|
167 |
|
317 |
|
74 |
|
108 |
|
160 |
|
336 |
|
||
Netherlands |
|
600 |
|
1,174 |
|
|
176 |
|
369 |
|
|
102 |
|
219 |
|
50 |
|
124 |
|
136 |
|
224 |
|
||
Portugal |
|
466 |
|
899 |
|
|
168 |
|
286 |
|
|
107 |
|
163 |
|
44 |
|
115 |
|
101 |
|
153 |
|
||
Other |
|
519 |
|
1,400 |
|
|
225 |
|
510 |
|
|
152 |
|
279 |
|
55 |
|
164 |
|
146 |
|
310 |
|
||
Intra-region revenue |
|
(261 |
) |
(453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Europe |
|
12,484 |
|
24,733 |
|
|
4,934 |
|
9,832 |
|
|
3,077 |
|
5,951 |
|
1,199 |
|
2,940 |
|
3,220 |
|
6,954 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
EMAPA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Romania(3) |
|
355 |
|
533 |
|
|
175 |
|
254 |
|
|
68 |
|
88 |
|
82 |
|
104 |
|
121 |
|
159 |
|
||
Turkey(4) |
|
283 |
|
|
|
|
65 |
|
|
|
|
(18 |
) |
|
|
36 |
|
|
|
134 |
|
|
|
||
Egypt |
|
355 |
|
555 |
|
|
198 |
|
307 |
|
|
155 |
|
212 |
|
66 |
|
167 |
|
137 |
|
190 |
|
||
South Africa(2) |
|
727 |
|
1,070 |
|
|
261 |
|
388 |
|
|
152 |
|
271 |
|
92 |
|
202 |
|
139 |
|
178 |
|
||
Pacific |
|
666 |
|
1,335 |
|
|
165 |
|
362 |
|
|
66 |
|
140 |
|
104 |
|
247 |
|
61 |
|
112 |
|
||
Other subsidiaries |
|
397 |
|
675 |
|
|
120 |
|
195 |
|
|
41 |
|
42 |
|
77 |
|
132 |
|
72 |
|
61 |
|
||
Other joint ventures(2) |
|
294 |
|
387 |
|
|
116 |
|
153 |
|
|
59 |
|
86 |
|
101 |
|
101 |
|
27 |
|
60 |
|
||
United States |
|
|
|
|
|
|
|
|
|
|
|
1,015 |
|
1,732 |
|
|
|
|
|
|
|
|
|
||
Other Associates |
|
|
|
|
|
|
|
|
|
|
|
390 |
|
666 |
|
|
|
|
|
|
|
|
|
||
Intra-region revenue |
|
(2 |
) |
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total EMAPA |
|
3,075 |
|
4,554 |
|
|
1,100 |
|
1,659 |
|
|
1,928 |
|
3,237 |
|
558 |
|
953 |
|
691 |
|
760 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common functions |
|
86 |
|
145 |
|
|
208 |
|
275 |
|
|
136 |
|
211 |
|
67 |
|
112 |
|
110 |
|
(19 |
) |
||
Inter-region revenue |
|
(51 |
) |
(82 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Group |
|
15,594 |
|
29,350 |
|
|
6,242 |
|
11,766 |
|
|
5,141 |
|
9,399 |
|
|
1,824 |
|
4,005 |
|
|
4,021 |
|
7,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net interest paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(186 |
) |
(349 |
) |
||
Tax paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,217 |
) |
(1,712 |
) |
||
Dividends received and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
337 |
|
784 |
|
||
Free cash flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,955 |
|
6,418 |
|
||
Discontinued operations(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8 |
) |
701 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,947 |
|
7,119 |
|
Notes:
(1) |
|
For the Groups operating companies and common functions, the cash flows presented reflect operating free cash flow |
(2) |
|
The results of joint ventures have been included using proportionate consolidation |
(3) |
|
Includes periods in the 2006 financial year where accounted for as a joint venture |
(4) |
|
Presents the results from 24 May 2006, being the date of acquisition |
(5) |
|
Discontinued operations represent Vodafone Japan |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.
|
VODAFONE GROUP |
|
PUBLIC LIMITED COMPANY |
|
(Registrant) |
|
|
|
|
|
|
Dated: May 24, 2007 |
By: |
|
Name: Stephen R. Scott |
|
Title: Group General Counsel and Company |
|
Secretary |