Vodafone H1 net declines 35%, India revenue grows 41%

UK-based Vodafone has posted a 35 per cent drop in its first half net profit to 2.14 billion pounds in the midst of a global slowdown even as its India revenue grew 41 per cent after the acquisition of the Hutchison stake in the erstwhile Hutchison-Essar.

Vodafone-Essar's revenue was 1.18 billion pounds, growing by 41 per cent. Adjusted operating profit was 7 million pounds, the company said.

Network expansion continued, with an average of 2,000 base stations constructed per month during the period from May 2007 to date, including new service areas, while site sharing increased and the joint venture, Indus Towers, was launched and steadily increased its operations.

Growth in network expansion in the second quarter was 36 per cent as compared with 46 per cent in the first quarter, with around five per cent of the decline in the growth rate being a result of market-driven cuts and the balance attributable to a higher revenue base in the second quarter of the prior period.

Revenues in Eastern Europe, the Middle East, Africa, Asia and the Pacific (EMAPA) region registered strong growth of 25.7 per cent to 5.4 billion pounds, driven by the India acquisition last year.

During H1, Vodafone Group's revenue rose to 19.9 billion pounds, up 17 per cent from the 17 billion pounds in the year-ago period, due to forex shifts.

The telecom giant cut its full-year sales forecast as consumer spending hit a low globally to 38.8-39.7 billion pounds. It said it planned to cut costs by about one billion pounds annually from 2011.