Vodafone 1998 Annual Report Download - page 53

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Vodafone Report and Accounts - Financial Review
Profit and loss account
Turnover
Group turnover for the financial year increased by 41% to £2,470.8m, up 23%
excluding the effects of acquisitions. This increase included £62.8m as a
result of the acquisition of a controlling interest in the Dutch network operator
Libertel, and its service provider Liberfone, in January 1998.
Turnover in the UK increased by 20%, principally as a result of the 20%
growth in customers connected to the network, higher roaming revenues from
both visitors using the UK digital network and UK customers using overseas
networks and incremental turnover from service providers acquired in the
previous financial year.
In Continental Europe, turnover increased by 259% to £502.5m due to the
acquisition of Libertel in the year and the continuing impact of the
consolidation of Panafon which was acquired in February 1997. In the Pacific
Rim, turnover grew by £66.3m to £196.6m, mostly in Australia where
Vodafone Network Pty's customer base grew by 99%.
Total Group proportionate turnover, which reflects the Group's ownership
interests in its worldwide operations, increased by 29% in the year, whilst total
proportionate customers increased by 46% to 5,844,000. The increase in
proportionate turnover, excluding the effects of acquisitions, was 25%.
International businesses increased proportionate turnover by 54% to
£1,036.1m as proportionate customers increased by 110% to 2,414,000.
Total Group operating profit
Total Group operating profit increased by 27% to £686.4m.
In the UK, operating profit rose by 8% to £564.0m. This grew at a slower rate
than turnover due to the impact of the lower margin service providers
acquired in the previous financial year and exceptional costs associated with
the reorganisation of the service provider businesses.
International operations made a total operating profit of £122.4m (1997 -
£18.0m). The adverse impact of exchange rates on profit was £19.7m and
http://www.vodafone.com/download/investor/reports/annual98/financialreview/profitandloss.html (1 of 2)29/03/2007 23:08:54