Vodafone Group has posted a €7.8 billion loss in the first six months of this fiscal year on account of sale of its India business and impairment charges in Spain and Romania.
For the April-September period of the previous last financial year, Vodafone Group had posted a profit of €1.2 billion.
The loss owing to the disposal of the Vodafone India, which has merged with Idea Cellular owned by the Aditya Birla Group, stood at €3.4 billion. The entity now operates as Vodafone Idea, in which Vodafone owns a 45.2% stake and Aditya Birla Group holds 26%.
Operating loss was€2.1 billion, largely due to impairments of €3.5 billion in Spain, Romania and Vodafone Idea. It was down from €4.1 billion in the year-ago period.
The revenue of Vodafone Group declined by 5.5% to €2.18 billion at the end of the reported period compared to €2.3 billion a year ago.
The group’s financial numbers include performance during July and August of Vodafone India, which posted €955 million revenue from services.
“Six months ended September 30, 2018, includes €3.5 billion of impairment charges in respect of the Group’s investments in Spain, Romania and Vodafone Idea and a €3.4 billion loss on the disposal of Vodafone India,” Vodafone said.
Vodafone India and Idea Cellular the announced merger in March 2017 and it got completed on August 31, 2018.
This is why Vodafone India has been excluded from group figures for all periods up to August 31, 2018 and the results of Vodafone Idea have been included in all group figures for all periods thereafter, unless otherwise stated, the company said.
The market environment in India remains highly challenging with significant pricing pressure. Management continues to consider it reasonable to assume an overall market and pricing recovery. However, the timing and magnitude remain highly uncertain, Vodafone said.
Vodafone Idea is expected to announce its first results on November 14.
DISTRESS CALL
- €3.4 bn – Loss owing to the disposal of the Vodafone India, which has merged with Idea Cellular
- €955 mn – Vodafone India’s revenue from services during July and August
