One of the world’s largest mobile operators, Vodafone Group Plc reported its biggest fall in fourth-quarter wireless service revenue on Tuesday. Vodafone are still struggling with the weak economy.
Service sales slipped by 4.2% in the past three months ended March 2013 which marks the third straight quarterly decline. The mobile operator struggles with the economy cuts to the charged rates for other carriers. According to analysts, a 4.4 % drop on average was predicted and the operating profit excludes items that will be between 12bn pounds and 12.8bn pounds according to reports compiled by Bloomberg.The biggest fall in revenue came from the southern Europe, where operators were cutting prices to win business from struggling consumers .Service profits in Italy slipped by 12.8% while in Spain fell by 11.5%.
Since 2005, Vodafone sales went down 4.2 % to 44.4bn pounds while earning fell to 3.1% to 13.3bn pounds according to reports released.
The company did not address the speculations and assumptions of selling its stake to joint venture partner Verizon Communication.
“We have faced headwinds from a combination of continued tough economic conditions, particularly in Southern Europe, and an adverse European regulatory environment,” said Chief Executive Vittorio Colao said.
“The board remains focused on balancing ongoing shareholder remuneration with the long-term investment needs of the business, and going forward aims at least to maintain the ordinary dividend per share at current levels.”
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