Vodafone 1997 Annual Report Download - page 11

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Vodafone Group Plc Annual Report & Accounts for the year ended 31 March 1997 - Review of results
Germany 40 16 150
Greece 101 57 77
Hong Kong 41 38 8
Malta & Sweden 33 20 65
Netherlands 36 2 1,700
South Africa 107 84 27
Uganda & Fiji 4 3 33
TOTAL 2,234 1,781 25
TOTAL International 673 412 63
Profit on ordinary activities before interest
Operating profit increased by 14% to £529.6m.
In the UK, operating profit rose by 5% to £519.1m and grew at a slower rate
than turnover as the costs of migrating subscribers from the analogue to the
GSM digital network grew to £52.0m, expenditure on marketing increased and
the results of the acquired Service Providers, Talkland, Peoples Phone and
Astec, were consolidated with those of the higher margin network operator. UK
network Service Provider incentives and support amounted to £189 per gross
connection (1996 - £168). This figure includes the cost of the migration
programme which, if excluded, would reduce the cost per connection to £154
(1996 - £164), reflecting the effect of lower mobile phone wholesale prices.
International operations made an operating profit for the first time of £10.5m
compared to a loss of £27.0m last year. The largest contribution to this advance was achieved in
Continental Europe, which improved by £34.8m as Panafon continued to perform strongly and was fully
consolidated from 1 February 1997. Losses in the Pacific Rim increased by £5.9m to £41.6m because of
lower profits in Hong Kong due to the roll out of a new network and distribution difficulties in Australia.
Profits nearly doubled in the Rest of the World to £19.7m as strong growth continued in South Africa.
The profit on disposal of fixed asset investments arose from the sale of the Group's 50% holding in Orbitel
Mobile Communications Limited, the sale of 5% of the Group's investment in Vodafone Pty to AAP
Information Services Pty Ltd and the sale by the Group's associate, Europolitan, of its 20% interest in
Sonofon, a Danish GSM operator.
Interest
http://www.vodafone.com/download/investor/reports/annual97/3/1.htm (2 of 4)29/03/2007 22:32:38