Report Overview


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Vodafone 2009/10 FY results: economic recovery benefits revenue, costs not-so-much


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Vodafone Europe’s organic revenue growth improved again, from -3.2% to -2.4%, with it enjoying a fair share of the improvement in mobile market growth driven by improving economies across Europe.
EBITDA margin fell, partly as a result of weak cost control but mainly because SAC/SRCs rose as Vodafone subsidised consumers getting more expensive handsets, which involves a short term (but not long term) profitability hit.
Vodafone Europe could move back into positive revenue growth this year as it rides the wave of market recovery, but short term margin targets will be hard to hit as handset subsidies continue to rise.