Vodafone reports turnaround as profits for year hit £2.5bn

Josh Mines
An Indian man walks past the signboard o
Vodafone turned around its loss-making 2017 to report a profit this year (Source: Getty)

On the same day that the company announced the departure of long-standing chief executive Vittorio Colao, Vodafone reported a turnaround from its loss-making performance in 2017.

The figures

Vodafone reported a profit for the year of €2.8bn (£2.5bn) for the year up to 31 March 2018, while revenues fell 2.2 per cent due to the deconsolidation of Vodafone Netherlands and FX movements.

It's a big improvement on last year, when the company reported a loss for the year of 6.1bn.

Operating profit was up 15.4 per cent to €4.3bn on 2017's figure of 3.7bn.

Why it's important

Colao will be able to bow out on a high note after what was a fairly turbulent year for the company.

Vodafone first announced the takeover of Malta-based TV and cable firm Melita, before it set it sights on a string of takeovers in Europe totalling €18.4bn.

The acquisitions will now place Vodafone as one of the biggest telcos in Europe, capable of taking on the likes of German giant Deutsche Telekom.

Colao also said the company was expecting to announce a merger with Idea Cellular in India "imminently."

Here in the UK, Vodafone also enjoyed success in the 4G and 5G spectrum auction, winning 50 MHz of 3.4 GHz spectrum for £378.2m.

What Vodafone said

Vittorio Colao, outgoing chief executive of Vodafone said:

This was a year of significant operational and strategic achievement and strong financial performance. Our sustained investment in network quality supported robust commercial momentum: we added a record number of fixed NGN and converged customers in Q4, mobile data usage continues to grow strongly and we grew both revenues and margins in Enterprise, despite roaming headwinds, and continued to reduce operating costs.

In short

Vodafone have turned around fortunes and look set to push on next year.

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