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Hit by the disposal of its India operations, UK-headquartered telecom company Vodafone Group posted a half-year net loss of €7.8 billion, compared to a profit of €1.2 billion recorded in the year-ago period.
The operator’s revenue dipped 5.5 per cent to €21.8 billion, compared with €23 billion recorded during the same period of the previous fiscal.
The loss on disposal of Vodafone India stood at €3.4 billion, following the completion of the merger with Idea Cellular.
In India, Vodafone is making a “fast start” on capturing the $10-billion Net Present Value (NPV) of targeted cost and capex savings following the merger, it added.
Vodafone Group had announced the merger of its India unit Vodafone India with Idea Cellular (excluding its 42 per cent stake in Indus Towers) on March 20, 2017. The deal was completed on August 31, 2018.
The market environment in India remains “highly challenging” with significant pricing pressure, which has led to industry consolidation but a significantly lower level of profitability and greater pressure on financing, it added.
The company’s net debt stood at €32.1 billion as of September 30, 2018, compared with €29.6 billion as of March 31, 2018. “As part of our effort to improve returns, we are creating a virtual internal tower company across our European operations, and we are reviewing the best strategic and financial direction for these assets,” said Nick Read, Group Chief Executive at Vodafone Group.
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