Vodafone experiences losses due to writedowns
Vodafone has reported a significant loss following a €4.5 billion impact from writedowns related to its operations in Germany and Romania. However, the company remains optimistic about potential top-line growth in Germany, which is its most significant market.
For the year ending March 31, Vodafone recorded a pre-tax loss of €1.5 billion, compared to a profit of €1.6 billion in the previous year. The losses stemmed largely from impairments of €4.4 billion in Germany and €165 million in Romania, although revenues saw a slight increase of 2%, totaling €37.5 billion.
Despite the losses, Chief Executive Margherita Della Valle expressed a positive outlook.
We have restructured operations in Europe and are witnessing the benefits of our focus on customer satisfaction across all markets, particularly in the UK and Germany. Operational improvements are evident, and while there’s still much to achieve, this transition has set Vodafone up for several years of growth.
Looking further ahead, we anticipate a steady momentum across Europe and Africa, with expectations for Germany to regain top-line growth this year. This outlook is reflected in our profit and cash flow guidance for the upcoming year.
