Vodafone to cut costs by further £1bn
Vodafone announces half yearly financial report and further £1 billion cost-cutting measures
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Vodafone has announced plans to cut costs by a further £1 billion, reporting pre-tax profits of £5.48 billion.
The mobile phone giant saw pre-tax profits up 3.6 per cent in the six months to September 30th, with revenues up nine per cent to £21.8 billion.
Vodafone said group revenue from continuing operations were down three per cent, and the company announced it would be extending cost cuts to £1 billion of savings by 2012.
Vittorio Colao, chief executive, said: "The group has performed in line with our expectations and we have made strong progress with our strategic priorities, in particular in mobile data and cash generation.
"We have confirmed our guidance for the full year, despite the uncertainties of current economic trends. The £1 billion cost reduction programme is expected to be delivered a year ahead of plan and we have extended this to a further £1 billion of cost savings by 2012.
"At the same time, we have maintained our capital investment at £2.6 billion in the first half, delivering further improvements in network quality and performance for our customers."