Vodafone PLC released its half-year earnings report citing £4.3 billion in operational revenue.
Europe is the main source of revenue (75%). Penetration in the main Euro countries has reached over 100% in many places, which is possible due to multiple sim cards. This is a ceiling on growth in Europe. Revenue from Europe has been coming under increased pressure due to competition from VOIP and MVNO operators like Virgin Mobile. Revenue from data services also has very limited room to grow due to maximum penetration. International growth is still a big story but it won't be a driver of revenue for some time, thus the current transition in share price from growth to value multiples.
At a meeting shareholder meeting, over 93% of all the owners of Vodafone's stock voted to retain the company's 45% stake in Verizon Wireless, rejecting a proposal to sell the stake to Verizon Communications (VZ) or create a tracking stock for the U.S.-based wirless provider.
Rumors that Vodafone may be the exclusive carrier of the iPhone in Europe sent the company's stock price to $33.07, up from $32.06 the previous day.
Vodafone released financial statements today for the fiscal year ending March 31st. Total net losses were down to 5.43bn pounds from 21.9B pounds in the previous year, due to strong growth in emerging markets and the company's reduction of operating costs in Europe.
Mobile phone giant Vodafone Group said Thursday that it has signed a deal with Sagem Communications, to produce a Vodafone-only handset by June 2007.
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