British mobile phone giant Vodafone on Tuesday revealed it had slumped
into a net loss of £1.977 billion during its first half on massive
writedowns linked to indebted eurozone countries Spain and Italy.
loss after tax for the six months to September 30, equivalent to $3.138
billion or 2.473 billion euros, came as the company said it suffered
impairments of £5.9 billion linked to financial turmoil in Spain and
The net loss compared with profit after tax of £6.679
billion in the first half of Vodafone's 2011-12 financial year, the
company said in its earnings statement.
Chief executive Vittorio
Colao said the latest results "reflect tougher market conditions, mainly
in southern Europe" which would continue to impact the company in the
However he voiced optimism about the longer term owing to Vodafone's growth in emerging markets such as India and Turkey.
took a hit of £3.2 billion linked to its operations in Spain and an
impairment charge of £2.7 billion for Italy during its first half.
company added that it would carry out a share buyback totalling £1.5
billion on receipt by the end of 2012 of a £2.4-billion dividend from US
company Verizon Wireless, in which Vodafone has a 45-percent stake.
have continued to make progress on our strategic priorities over the
last six months, with good growth in data and emerging markets in
particular," Colao said.
"We remain very positive about the longer-term opportunities."