Vodafone 1999 Annual Report Download - page 3

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Chairman's Statement
Chairman's Statement
Lord MacLaurin of Knebworth, DL, Chairman
I am delighted, in my first report to you as Chairman of Vodafone, to
be able to confirm record results for the year and the excellent
prospects for your Company. Group turnover increased by 36% to
£3,360m (1998 – £2,471m) and profit before tax was £935m (1998 –
£650m), an increase of 44%. Proportionate EBITDA rose by 33%,
from £919m last year to £1,218m.
During the year, proportionate to equity stakes, the Group added
over 4,600,000 new customers to its networks, ending the year with a
world-wide customer base of 10,445,000. International customers
totalled 4,870,000, representing over 46% of the Group’s total
proportionate customer base, and the total operating profit
contribution from international operations increased to £319m from
£122m in 1998.
Basic earnings per share increased by 51% from 13.63p to 20.61p
and the Board has declared a second interim dividend of 3.24p per
share (1998 final dividend – 2.82p), making a total for the year of
6.36p.
The results for the year show that Vodafone remains at the head of an exciting industry which continues to develop at a
tremendous pace in all its markets. The investments made in networks outside the UK, a process which continued in the
year with the acquisition of the only GSM network in New Zealand and the opening for service of a new network in Egypt,
provided a substantially increased contribution to total Group operating profits. Total UK operating profit also grew, by
14%, in an increasingly competitive marketplace and the UK businesses continued to provide strong cash flow to finance
the Group’s expansion both nationally and internationally.
The increase in the number of customers connected to the UK network was exceptional, although the dramatic growth
experienced in the final three months of 1998 did cause some problems to the Company’s customer service operations. A
record 933,000 new customers joined the UK network in the October to December quarter, over three times more than in
any previous quarter. Customer service remains a priority for the Company and in the last six months of the financial year
over £20m was invested in customer care systems and staff in the UK, including the acquisition of a new 500 seat call
centre in Birmingham, to ensure that the overall level of customer service improves with the growth. In the UK, Vodafone
is the market leader with over 1,000,000 more customers than any other network. Maintaining this leadership requires
careful attention to be paid to the needs of customers and Vodafone remains committed to continuous improvement in the
quality and value of its services.
The most exciting development for the Group in the year was the announcement in January 1999 of its intended merger
with AirTouch Communications, Inc. of San Francisco, California.
http://www.vodafone.com/download/investor/reports/annual99/ChaimansStatement.htm (1 of 2)30/03/2007 00:05:29