VOD Vodafone Group PLC

By Adria Calatayud

Vodafone Group PLC reported results for fiscal 2021 on Tuesday. Here is what you need to know:

REVENUE: The U.K. telecommunications group generated revenue for the year to March 31 of 43.81 billion euros ($53.23 billion), down 2.6% on year. This was ahead of expectations of EUR43.64 billion, according to a consensus provided by the company and based on estimates by 16 analysts.

ADJUSTED EBITDA: Vodafone's adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred metric, which strips out exceptional and other one-off items--for fiscal 2021 declined 3.3% to EUR14.39 billion. This fell short of analysts' expectations of EUR14.54 billion, according to a company-collated consensus.

WHAT WE WATCHED:

-OUTLOOK: Vodafone said it expects adjusted Ebitda for fiscal 2022 to be between EUR15.0 billion and EUR15.4 billion, with an adjusted free cash flow of at least EUR5.2 billion. While the mid point of company's adjusted Ebitda guidance range is broadly in line with consensus expectations of EUR15.22 billion, analysts anticipated a free cash flow before spectrum costs of EUR5.44 billion for this year.

Over the medium term, Vodafone said it is targeting revenue growth in both Europe and Africa and mid-single digit growth in both adjusted Ebitda and adjusted free cash flow. The company also committed to a minimum annual dividend of 9 European cents a share.

-COVID-19 IMPACT: The company said it took a hit from the effect of the coronavirus pandemic on revenue from roaming and visitors. As a result of the conditions related to Covid-19, Vodafone accelerated cost-saving initiatives which led to a EUR500 million net reduction in expenditure from European operations, it said.

-NET DEBT: Vodafone ended fiscal 2021 with net debt of EUR40.54 billion, down from EUR42.05 billion a year earlier and ahead of consensus expectations of EUR42.97 billion. The company said free cash flow and net proceeds from the initial public offering of its European infrastructure company, Vantage Towers AG, contributed to the reduction in net debt.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

May 18, 2021 05:50 ET (09:50 GMT)

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