Vodafone Group PLC, the world's biggest mobile phone company by sales, on Tuesday posted a 37 percent gain in full-year profit, helped by the fall in the pound's value, but warned that it won't repeat that strong performance this year.
For the year ending March 31, Vodafone said its net profit was 9.06 billion pounds ($14 billion) compared to 6.6 billion pounds a year earlier. Revenue rose 16 percent to 41 billion pounds.
The depreciation of the pound against the euro helped the bottom line, the company said. Every 1 per cent change in the euro-pound exchange rate translates to a 70-million-pound change in operating profit, Vodafone said.
Adjusted operating profit (before tax) was 11.8 billion pounds, up 17 percent, but Vodafone said it expected that figure to be no higher in the current year, and perhaps as low as 11 billion pounds. "In Europe and central Europe, operating conditions will be challenging in the 2010 financial year," the company said.
"IMF forecasts indicate a GDP decline of 4 percent in 2009 across the Vodafone footprint within Europe and Central Europe and that unemployment could increase significantly."
Vodafone said full-year revenue was up in all regions: 32 percent in Asia Pacific and Middle East, 14 percent in Europe and 11 percent in Africa and central Europe.
The company's shares were up 0.6 percent at 128.2 pence on the London Stock Exchange.