Vodafone Group Plc
Full Year 20 Preliminary results
Connecting society, businesses and government delivers Vodafone a good financial performance
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Supporting society with rapid, comprehensive and coordinated COVID-19 response |
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Good financial performance with growth in revenue, adjusted EBITDA and free cash flow |
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Delivering against our strategic priorities and focusing activity to create value for stakeholders |
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Accelerating digital transformation with new 3-year ambition of over €1 billion net cost savings |
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European TowerCo now operational, on-track for early 2021 monetisation |
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Financial results (unaudited) |
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FY20 |
FY19 |
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Page |
€m |
€m |
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Change(%) |
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Group revenue |
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33 |
44,974 |
43,666 |
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+3.0 |
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Operating profit / (loss) |
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33 |
4,099 |
(951) |
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n/m |
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Loss for the financial year |
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33 |
(455) |
(7,644) |
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n/m |
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Basic loss per share |
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33 |
(3.13c) |
(29.05c) |
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n/m |
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Total dividends per share |
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47 |
9.00c |
9.00c |
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n/m |
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Alternative performance measures 1 |
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Group service revenue |
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13 |
37,871 |
36,458 |
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+0.8* |
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Adjusted EBITDA |
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13 |
14,881 |
13,918 |
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+2.6* |
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Adjusted earnings per share |
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24 |
5.60c |
6.27c |
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(10.7) |
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Free cash flow (pre-spectrum) |
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25 |
5,700 |
5,443 |
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+4.7 |
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Free cash flow |
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25 |
4,949 |
4,411 |
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+12.2 |
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Net debt** |
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25 |
(42,168) |
(27,033) |
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(56.0) |
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Net debt to adjusted EBITDA** |
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27 |
2.8x |
1.9x |
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n/m |
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Pre-tax return on capital employed (controlled) |
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28 |
6.1% |
5.3% |
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n/m |
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1. See page 56 for the location of the reconciliation to the closest equivalent GAAP measure. |
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Group revenue grew by 3.0% to €45.0 billion, supported by improving commercial momentum in Europe |
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Adjusted EBITDA grew by 2.6%* to €14.9 billion, reflecting revenue progression and cost programme success |
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Free cash flow grew by 12.2% to €4.9 billion, supported by disciplined capital management |
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Dividends per share of 9.00 eurocents |
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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.”