Vodafone reports operating loss

Electronic News, Nov 19, 2001 by Chris Druce, Melanie Reynolds

VODAFONE HAS REPORTED AN INTERIM OPERATING LOSS OF [pounds sterling]7.8 billion, resulting from the amortization of goodwill relating to the acquisition of Airtel and Mannesmann and other exceptional costs. This compares to the readjusted loss figure of [pounds sterling]3.3 billion from the same period a year earlier.

Before goodwill amortization and exceptional items, interim operating profit for 2001 was [pounds sterling]3.4 billion, a 40 percent increase from the [pounds sterling]2.4 billion made in the first six-months of 2000. This means that the group's net debt as of Sept. 30 stands at [pounds sterling] 9.2 billion, an increase from [pounds sterling]6.7 billion in the same period of 2000. "I am pleased to report that the group's performance reflects our shift in operational focus toward driving customer value and further cost improvements," said Julian Horn-Smith, group COO. The group's customer base grew by 15 percent to 95.6 million during the quarter. Despite this, Vodafone will cut 650 jobs from ac ross all areas of Vodafone's U.K. operations as it seeks to refocus its structure in-line with the current market.