Added by admin on November 13, 2010
Vodafone has reviewed its strategy and is considering disposing unproductive assets and re-pricing data plans for smartphone users to boost income.
The largest organization in terms of revenue is flush with funds generated by a sale of interest in Softbank, Japanese carrier, good all round results and income that has beaten forecasts.
Vodafone now aims to earn profit of close to $20 billion, slightly more than its earlier estimates. Organic revenue is expected to grow around 1 per cent – 4 per cent every year. The strategy of re-pricing data plans is expected to convince high end customers to pay more for better speeds.
On the whole, operating income is expected to stabilize at 6-7 billion pounds per year. Revenue in the first half of the year has beaten forecasts by Reuters’ poll. It was calculated at 22.6 billion pounds as compared to expected 22.3 billion pounds.
Core earnings were expected to fall but fell less than forecasted. This has encouraged the company to state that it will enjoy full year cash flow in excess of 6.5 billion pounds.
Good results have resulted in rise in share price by more than 16 per cent. This has coincided with the stake sale in China Mobile as well. Their French and Polish businesses are expected to go under the hammer next.