Vodafone – the world’s largest mobile operator by revenue – has reported a big rise in full-year profits, driven by growth in mobile data and fixed broadband. For the year ended March 31 2010, pre-tax profits totalled £8.7 billion, more than double the £4.2 billion profit reported last year. Revenues grew 8.4 percent to £44.47 billion, from £41.01 billion, helped by the pound’s fall against other currencies, including the euro. However, the UK-based group booked an impairment charge of £2.3 billion relating to its operations in India because of intense competition and a price war.

 “Revenue trends have improved again in Q4 driven by growth in mobile data and fixed broadband,” commented Vittorio Colao, chief executive. “Cost reduction targets were delivered ahead of
schedule enabling commercial reinvestment to improve market share and further strengthen our technology platforms. Free cash flow of £7.2 billion and confidence in Vodafone’s prospects have enabled us to increase dividends by 7 percent.” Colao noted that the company now generates 33 percent of service revenue from products other than mobile voice (with data revenue exceeding £4 billion for the first time), and has increased revenue from its operations in emerging markets. Geographically, service revenue in both Europe and Africa & Central Europe declined slightly (3.5 percent and 1.2 percent, respectively), whilst Asia Pacific & Middle East saw a 9.8 percent increase. Vodafone’s proportionate mobile customer base was 341 million at the end of the full financial year, with 8.5 million net additions during Q4. Colao added that the company is targeting 7 percent per annum growth in total dividends per share for the next three years. “We are creating a stronger Vodafone, which is positioned to return to revenue growth during the 2011 financial year, as economic recovery should benefit our key markets.”