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Press Release -- May 13th, 2020
Source: Vodafone Group
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FY20 Preliminary results

Connecting society, businesses and government delivers Vodafone a good financial performance

Highlights

  • Supporting society with rapid, comprehensive and coordinated COVID-19 response
  • Good financial performance with growth in revenue, adjusted EBITDA and free cash flow
  • Delivering against our strategic priorities and focusing activity to create value for stakeholders
  • Accelerating digital transformation with new 3-year ambition of over €1 billion net cost savings
  • European TowerCo now operational, on-track for early 2021 monetisation
  • Group revenue grew by 3.0% to €45.0 billion, supported by improving commercial momentum in Europe
  • Adjusted EBITDA grew by 2.6%* to €14.9 billion, reflecting revenue progression and cost programme success
  • Free cash flow grew by 12.2% to €4.9 billion, supported by disciplined capital management
  • Dividends per share of 9.00 eurocents
  • Resilient business model with expected free cash flow (pre-spectrum) of at least €5 billion in FY21

Nick Read, Group Chief Executive, commented:

“Vodafone has delivered a good financial performance - growing revenue, adjusted EBITDA and free cash flow - whilst building strong commercial momentum through the year and executing at pace on our strategic priorities. We have also continued to invest in our fixed and mobile Gigabit network infrastructure and digital services, to provide faster speeds for our customers, as well as successfully managing the recent surges in demand. The services Vodafone provides are more important than ever and we are committed to playing a key role in society’s recovery to the ‘new normal’.

I am pleased with the rapid, comprehensive and coordinated way we responded to the COVID-19 crisis. I want to give my personal thanks to the entire Vodafone team, who through their dedication, expertise and professionalism, have kept families, friends and communities connected, enabled students to continue their education, helped businesses operate and proactively supported governments to deliver critical services.”

Financial results (unaudited)
FY20
€m
FY19
€m
Change
%
Group revenue 44,974 43,666 +3.0
Operating profit / (loss) 4,099 (951) NM
Loss for the financial year (455) (7,644) NM
Basic loss per share (3.13c) (29.05c) NM
Total dividends per share 9.00c 9.00c NM
Alternative performance measures1
Group service revenue 37,871 36,458 +0.8*
Adjusted EBITDA 14,881 13,918 +2.6*
Adjusted earnings per share 5.60c 6.27c (10.7))
Free cash flow (pre-spectrum) 5,700 5,443 +4.7
Free cash flow 4,949 4,411 +12.2
Net debt** (42,168) (27,033) (56.0)
Net debt to adjusted EBITDA** 2.8x 1.9x NM
Pre-tax return on capital employed (controlled) 6.1% 5.3% NM

Notes to Editors

  1. See page 56 for the location of the reconciliation to the closest equivalent GAAP measure.

All amounts in this document marked with an “*” represent organic growth, which presents performance on a comparable basis, both in terms of merger and acquisition activity (notably by excluding the disposal of Vodafone New Zealand and the acquired Liberty Global assets), movements in foreign exchange rates and the impact from the implementation of IFRS 16 ‘Leases’. Organic growth is an alternative performance measure. See “Alternative performance measures” on page 54 for further details and page 56 for the location of the reconciliation to the respective closest equivalent GAAP measure.

Net debt marked with a “**” represents net debt adjusted in FY20 to exclude derivative gains in cash flow hedge reserves, the corresponding losses for which are not recognised on the bonds within net debt and which are significantly increased due to COVID-19 related market conditions.

For further information

Vodafone Group, Media Relations
www.vodafone.com/media/contact

Investor Relations
Email: ir@vodafone.co.uk

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