Form 6-K

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Report of Foreign Private Issuer

 

Pursuant to Rules 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

Dated May 24, 2007

 

VODAFONE GROUP

PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

 

VODAFONE HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN, ENGLAND (Address of principal
executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

 

Form 20-F

ü

 

Form 40-F

 

 

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

 

Yes

 

 

No

ü

 

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

 


 

This Report on Form 6-K contains a news release issued by Vodafone Group Plc on May 23, 2007, entitled “INFORMATION RELATING TO PRELIMINARY RESULTS “.

 

 


 

23 May 2007

 

INFORMATION RELATING TO PRELIMINARY RESULTS

 

Vodafone Group Plc (“Vodafone”) is publishing today additional information to assist investors and analysts in their understanding of Vodafone’s results for the year ended 31 March 2007 and outlook statement for the year ending 31 March 2008 (“2008 financial year”) to be announced on 29 May 2007.

 

Regional structure

 

In April 2006, Vodafone announced a revised organisational structure, principally aimed at creating a Europe Region and an Eastern Europe, Middle East and Africa, Asia, Pacific and Affiliates (“EMAPA”) Region, effective from 1 May 2006.

 

Arcor, the Group’s fixed line business in Germany, was managed independently from these two regions and therefore financial information for Arcor was presented separately. With effect from October 2006, Arcor has been managed within the Europe Region and consequently the preliminary results will present segmental financial information, including comparative information, for the Group in accordance with this structure.

 

Certain unaudited comparative information for the year ended 31 March 2006 and the six months ended 30 September 2006 is provided below on this basis.

 

Basis for outlook statement

 

The Group has previously stated that its outlook statement on revenue and profitability will move from a proportionate basis to a statutory basis with effect for the 2008 financial year. The outlook for profitability will be based on adjusted operating profit, which is representative of all the Group’s businesses, rather than statutory EBITDA, which excludes the results from associates. There will be no change in basis for capital expenditure or cash flow. The Group’s outlook will reflect current expectations for average foreign exchange rates for the 2008 financial year.

 


 

Accordingly, the Group will provide an outlook statement based on the following measures and in the format illustrated:

 

Group revenue

£ • to • billion

 

 

 

Group adjusted operating profit

£ • to • billion

 

 

 

Capitalised fixed asset additions

£ • to • billion

 

 

 

Free cash flow

£ • to • billion

 

The Group will provide an estimate for total depreciation and amortisation. The outlook for free cash flow and capitalised fixed asset additions will be stated including the impact of any known spectrum or licence purchases only.

 

Following completion of the Hutchison Essar acquisition on 8 May 2007, its results will be consolidated and reflected in the outlook statement from that date.

 

 

For further information:

 

Vodafone Group

 

 

Investor Relations

Media Relations

Tel: +44 (0) 1635 664447

 

Tel: +44 (0) 1635 664444

 

 

 

The financial information contained in this document is for convenience only and does not contain sufficient information to allow a full understanding of the historical results and state of affairs of Vodafone and the Vodafone Group. For more detailed information, including definitions of terms, regarding the financial results of the Vodafone Group for the financial periods referred to in this announcement, please refer to Vodafone’s Annual Report for the year ended 31 March 2006 or Vodafone’s interim results announcement for the six months ended 30 September 2006 relating to such financial period, as appropriate, which in each case can be found on our website (www.vodafone.com).

 

 


 

TRADING RESULTS

SIX MONTHS ENDED 30 SEPTEMBER 2006

 

 

 

Europe(1)

 

EMAPA

 

Common

 

Eliminations

 

Group

 

 

 

 

 

 

 

functions

 

 

 

 

 

 

 

£m

 

£m

 

£m

 

£m

 

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

8,968

 

2,436

 

-

 

(34

)

11,370

 

Messaging revenue(2)

 

1,458

 

331

 

-

 

(3

)

1,786

 

Data revenue(2)

 

603

 

56

 

-

 

(9

)

650

 

Fixed line operators and DSL revenue

 

683

 

34

 

-

 

-

 

717

 

Total service revenue

 

11,712

 

2,857

 

-

 

(46

)

14,523

 

Acquisition revenue

 

466

 

176

 

-

 

-

 

642

 

Retention revenue

 

174

 

8

 

-

 

-

 

182

 

Other revenue

 

132

 

34

 

86

 

(5

)

247

 

Total revenue

 

12,484

 

3,075

 

86

 

(51

)

15,594

 

Interconnect costs

 

(1,880

)

(520

)

-

 

46

 

(2,354

)

Other direct costs

 

(899

)

(353

)

-

 

5

 

(1,247

)

Acquisition costs

 

(1,243

)

(313

)

-

 

-

 

(1,556

)

Retention costs

 

(763

)

(91

)

-

 

-

 

(854

)

Operating expenses

 

(2,765

)

(698

)

122

 

-

 

(3,341

)

EBITDA

 

4,934

 

1,100

 

208

 

-

 

6,242

 

Acquired intangibles amortisation

 

(8

)

(189

)

-

 

-

 

(197

)

Purchased licence amortisation

 

(443

)

(24

)

-

 

-

 

(467

)

Depreciation and other amortisation

 

(1,408

)

(364

)

(72

)

-

 

(1,844

)

Share of result in associates

 

2

 

1,405

 

-

 

-

 

1,407

 

Adjusted operating profit

 

3,077

 

1,928

 

136

 

-

 

5,141

 

Adjustments for:

 

 

 

 

 

 

 

-

 

 

 

- Non-operating income of associates

 

-

 

6

 

-

 

-

 

6

 

- Impairment losses

 

(8,100

)

-

 

-

 

-

 

(8,100

)

- Other income and expense

 

-

 

-

 

1

 

-

 

1

 

Operating profit/(loss)

 

(5,023

)

1,934

 

137

 

-

 

(2,952

)

 

 

TRADING RESULTS

YEAR ENDED 31 MARCH 2006

 

 

 

Europe(1)

 

EMAPA

 

Common

 

Eliminations

 

Group

 

 

 

 

 

 

 

functions

 

 

 

 

 

 

 

£m

 

£m

 

£m

 

£m

 

£m

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice revenue

 

17,827

 

3,636

 

-

 

(58

)

21,405

 

Messaging revenue(2)

 

2,836

 

454

 

-

 

(1

)

3,289

 

Data revenue(2)

 

1,023

 

86

 

-

 

(11

)

1,098

 

Fixed line operators and DSL revenue

 

1,271

 

19

 

-

 

-

 

1,290

 

Total service revenue

 

22,957

 

4,195

 

-

 

(70

)

27,082

 

Acquisition revenue

 

1,018

 

277

 

-

 

-

 

1,295

 

Retention revenue

 

434

 

14

 

-

 

-

 

448

 

Other revenue

 

324

 

68

 

145

 

(12

)

525

 

Total revenue

 

24,733

 

4,554

 

145

 

(82

)

29,350

 

Interconnect costs

 

(3,739

)

(794

)

-

 

70

 

(4,463

)

Other direct costs

 

(1,666

)

(442

)

-

 

12

 

(2,096

)

Acquisition costs

 

(2,501

)

(467

)

-

 

-

 

(2,968

)

Retention costs

 

(1,752

)

(139

)

-

 

-

 

(1,891

)

Operating expenses

 

(5,243

)

(1,053

)

130

 

-

 

(6,166

)

EBITDA

 

9,832

 

1,659

 

275

 

-

 

11,766

 

Acquired intangibles amortisation

 

(2

)

(155

)

-

 

-

 

(157

)

Purchased licence amortisation

 

(884

)

(63

)

-

 

-

 

(947

)

Depreciation and other amortisation

 

(3,000

)

(602

)

(72

)

-

 

(3,674

)

Share of result in associates

 

5

 

2,398

 

8

 

-

 

2,411

 

Adjusted operating profit

 

5,951

 

3,237

 

211

 

-

 

9,399

 

Adjustments for:

 

 

 

 

 

-

 

-

 

 

 

- Non-operating income of associates

 

-

 

17

 

-

 

-

 

17

 

- Impairment losses

 

(23,515

)

-

 

-

 

-

 

(23,515

)

- Other income and expense

 

3

 

-

 

12

 

-

 

15

 

Operating profit/(loss)

 

(17,561

)

3,254

 

223

 

-

 

(14,084

)

 

 

Notes:

(1)

 

Within the Europe region, certain revenue and costs relating to Arcor have been reclassified. All prior periods have been adjusted accordingly. The reclassification had no effect on total revenue, EBITDA or adjusted operating profit.

(2)

 

Certain revenue relating to content delivered by SMS and MMS has been reclassified from messaging revenue to data revenue. All prior periods have been adjusted accordingly.

 

 


 

REGIONAL ANALYSIS

 

 

 

Revenue

 

 

EBITDA

 

 

Adjusted operating profit

 

 

Capitalised fixed asset additions

 

 

Free cash flow(1)

 

 

 

Six months ended
30 September
2006

 

Year
ended
31 March
2006

 

 

Six months
ended
30 September
2006

 

Year
ended
31 March 2006

 

 

Six months ended
30 September
2006

 

Year
ended
31 March 2006

 

Six months ended
30 September
2006

 

Year
ended
31 March 2006

 

Six months ended
30 September
2006

 

Year
ended
31 March
2006

 

 

 

£m

 

£m

 

 

£m  

 

£m  

 

 

£m 

 

£m

 

£m  

 

£m

 

£m 

 

£m 

 

EUROPE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

2,827

 

5,754

 

 

1,263

 

2,703

 

 

724

 

1,496

 

198

 

592

 

990

 

2,167

 

Italy(2)

 

2,174

 

4,363

 

 

1,128

 

2,270

 

 

839

 

1,672

 

184

 

541

 

878

 

1,808

 

Spain

 

2,268

 

3,995

 

 

813

 

1,373

 

 

585

 

968

 

213

 

502

 

432

 

958

 

UK

 

2,549

 

5,048

 

 

785

 

1,623

 

 

318

 

698

 

305

 

665

 

393

 

942

 

Arcor

 

706

 

1,320

 

 

126

 

228

 

 

83

 

139

 

76

 

129

 

(16

)

56

 

Greece

 

636

 

1,233

 

 

250

 

470

 

 

167

 

317

 

74

 

108

 

160

 

336

 

Netherlands

 

600

 

1,174

 

 

176

 

369

 

 

102

 

219

 

50

 

124

 

136

 

224

 

Portugal

 

466

 

899

 

 

168

 

286

 

 

107

 

163

 

44

 

115

 

101

 

153

 

Other

 

519

 

1,400

 

 

225

 

510

 

 

152

 

279

 

55

 

164

 

146

 

310

 

Intra-region revenue

 

(261

)

(453

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Europe

 

12,484

 

24,733

 

 

4,934

 

9,832

 

 

3,077

 

5,951

 

1,199

 

2,940

 

3,220

 

6,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMAPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Romania(3)

 

355

 

533

 

 

175

 

254

 

 

68

 

88

 

82

 

104

 

121

 

159

 

Turkey(4)

 

283

 

 

 

65

 

 

 

(18

)

 

36

 

 

134

 

 

Egypt

 

355

 

555

 

 

198

 

307

 

 

155

 

212

 

66

 

167

 

137

 

190

 

South Africa(2)

 

727

 

1,070

 

 

261

 

388

 

 

152

 

271

 

92

 

202

 

139

 

178

 

Pacific

 

666

 

1,335

 

 

165

 

362

 

 

66

 

140

 

104

 

247

 

61

 

112

 

Other subsidiaries

 

397

 

675

 

 

120

 

195

 

 

41

 

42

 

77

 

132

 

72

 

61

 

Other joint ventures(2)

 

294

 

387

 

 

116

 

153

 

 

59

 

86

 

101

 

101

 

27

 

60

 

United States

 

 

 

 

 

 

 

1,015

 

1,732

 

 

 

 

 

Other Associates

 

 

 

 

 

 

 

390

 

666

 

 

 

 

 

Intra-region revenue

 

(2

)

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Total EMAPA

 

3,075

 

4,554

 

 

1,100

 

1,659

 

 

1,928

 

3,237

 

558

 

953

 

691

 

760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common functions

 

86

 

145

 

 

208

 

275

 

 

136

 

211

 

67

 

112

 

110

 

(19

)

Inter-region revenue

 

(51

)

(82

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Group

 

15,594

 

29,350

 

 

6,242

 

11,766

 

 

5,141

 

9,399

 

 

1,824

 

4,005

 

 

4,021

 

7,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(186

)

(349

)

Tax paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,217

)

(1,712

)

Dividends received and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

337

 

784

 

Free cash flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 – Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,955

 

6,418

 

 – Discontinued operations(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8

)

701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,947

 

7,119

 

 

Notes:

(1)

 

For the Group’s operating companies and common functions, the cash flows presented reflect operating free cash flow

(2)

 

The results of joint ventures have been included using proportionate consolidation

(3)

 

Includes periods in the 2006 financial year where accounted for as a joint venture

(4)

 

Presents the results from 24 May 2006, being the date of acquisition

(5)

 

Discontinued operations represent Vodafone Japan

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

 

 

VODAFONE GROUP

 

PUBLIC LIMITED COMPANY

 

(Registrant)

 

 

 

 

 

 

Dated:  May 24, 2007

By:

 

Name:  Stephen R. Scott

 

Title:   Group General Counsel and Company

 

Secretary