Report Overview


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Vodafone half year 2010/11 results: slow improvements, strong strategy


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Vodafone Europe’s underlying revenue growth rose slightly in the September quarter, performing well in a market that is still only slowly recovering. Control of fixed costs was strong, but rising handset subsidies pushed margins down again.
Vodafone’s updated strategy contains strong elements of a focus on the nitty gritty and a move away from the more expansive desires of the past, which is excellent. Successful implementation remains a challenge, but at least head office is likely to be a help, not a hindrance.
Vodafone’s medium term expectations are for growing revenue and stable margins, which is laudably ambitious compared to past performances, and may even be achievable if it can balance smartphone tariffs and handset subsidies to its net advantage.