London: Telecommunications company Vodafone
Group PLC today reported a 15 per cent increase in first-half
net profit. Results were boosted by favourable currency
movements, lower taxes and expansion at its Verizon Wireless
venture in the US.
For the six months ending Sept 30, Vodafone made a net
profit of USD 7.6 billion, up from a year ago.
Group revenue from continuing operations, however, was
down 3 per cent, the company said, while reported revenue -
which accounts for businesses it has bought or sold - rose 9
per cent to 21.8 billion pounds.
The company did not break out results for the second
Vodafone shares were down 2.9 per cent at 134 pence in
midmorning trading on the London Stock Exchange.
"Whilst the results have broadly met analysts`
expectations, a continued dependency on cost cutting measures
fails to truly inspire," said Keith Bowman, analyst at
Hargreaves Lansdown Stockbrokers.
"Management looks to be doing well in controlling the
levers it can to sustain performance in spite of the cyclical
and structural issues," said Morten Singleton, analyst at
Collins Stewart. "There was no good news in the top line,
however, with the organic metrics showing deterioration on
Q1." Singleton recommended selling the shares.