Vodafone raises profit forecast

Vodafone shop frontVodafone said it would focus on markets in Europe, Africa and India
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Mobile phone operator Vodafone has upped its full-year operating profit forecast to £11.8-12.2bn ($19-19.7bn).

The company also revealed an agreement to sell its remaining interest in Vodafone Japan to new owner Softbank for £3.1bn, as part of its new strategy of offloading non-core assets.

Vodafone said it would focus on India, Europe and Africa.

Both news items came as the company said profits for the six months to September had risen 43% to £8.2bn.

The sale of its Japanese business – with the first £1.6bn payment from Softbank scheduled for this December – follows the mobile operator’s withdrawal earlier this year from China.

Vodafone sold its 3.2% stake in China Mobile for $6.5bn in September.

The company did not include the US in its list of target markets, even though Vodafone reported stronger-than-expected earnings growth at Verizon Wireless, its key US business interest.

Vodafone said revenues in western Europe had fallen in the past six months, down 4.3% from a year earlier. But this was more than offset by strong revenue growth in developing markets.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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