Vodafone 1998 Annual Report Download - page 34

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Annual Report and Accounts 1998 - Review of Operations - Introduction
C C Gent
CHIEF EXECUTIVE
Vodafone estimates that this demand will lead to
penetration levels that exceed 50% of the population in
all markets in the developed world and that mobile
telephony will become the preferred means of personal
communications.
During the last financial year, the Vodafone Group continued to focus its business activities on
satisfying the huge demand that continues to exist for mobile telecommunications services on
an international basis. Vodafone estimates that this demand will lead to penetration levels that
exceed 50% of the population in all markets in the developed world and that mobile telephony
will become the preferred means of personal communications.
The scale of this opportunity is such that it should lead to substantial growth in profit and
operating cash flow for the Vodafone Group over the next five years.
In this context, the advances that have been made by Vodafone's international operations over
the last year are highly significant and the process of generating international earnings that are
on a par with those from the UK is well under way.
The Group's strategy for international investments is to further develop existing businesses, build
shareholdings in associates and, where appropriate, bid for new licences and make acquisitions. This
has already had a positive effect on the Group's financial performance.
In the last year, overall international customer growth exceeded expectations with more than 1.25 million
customers being added and international operations contributed 17.8% of total Group operating profit,
against 3.3% in the previous year.
In the UK, the Group is committed to maintaining the strength of its core businesses. As part of this
commitment, a major review of operations was initiated in early 1997, to ensure that Vodafone continues
to maintain market leadership and to remain at the leading edge of mobile telephony, not just in
technical terms but also in the way it is able to respond both to customer needs and market
opportunities.
http://www.vodafone.com/download/investor/reports/annual98/reviewops/intro.html (1 of 2)29/03/2007 23:07:29