11 seconds ago 2009-12-10T07:06:27-08:00
LONDON (AFP) – Mobile phone giant Vodafone said on Tuesday that net profits soared 125 percent during its first half, adding that it planned to double annual cost savings to two billion pounds.
Profit after tax soared to 4.82 billion pounds in the six months to September 30 compared with 2.14 billion pounds in the equivalent period a year earlier, Vodafone said in a statement.
Net earnings were skewed largely owing to a huge write-off linked to its Turkish business a year earlier but a nine percent increase in group revenues to 21.8 billion pounds did contribute to the group's strong interim profits.
Operating profit rose 2.9 percent to 7.5 billion pounds during the first half, while revenues climbed 9.3 percent to 21.761 billion pounds.
"The group has performed in line with our expectations and we have made strong progress," Vodafone chief executive Vittorio Colao said in the earnings release.
"The one billion-pound cost reduction programme is expected to be delivered a year ahead of plan and we have extended this to a further one billion pounds of cost savings by 2012."
"At the same time, we have maintained our capital investment at 2.6 billion pounds in the first half, delivering further improvements in network quality and performance for our customers."
Vodafone, which employs around 10,000 people in Britain, had launched a major cost-cutting programme in November to reduce costs by 1.0 billion pounds by March 2011.
In late afternoon trade, Vodafone's share price fell 1.96 percent to 135.25 pence on the FSTE 100 index, which in turn edged 0.05 percent higher to 5,237.90 pence.
