Our goal is to be the communications leader in an increasingly connected world!

HIGHLIGHTS
Progress towards strategic objectives

• Europe: 2.0% revenue growth with outgoing usage up 20.1% and data revenue up 35.7%, all on an organic basis
• 9.9% mobile capital intensity for Europe and common functions
• EMAPA: revenue growth of 45.1%, reflecting acquisitions in India and Turkey. Organic growth of 14.5%
• Group data revenue up 52.7% to £2.2 billion, with organic growth of 40.6%

Key financials

• Adjusted earnings per share up 11.0% to 12.50 pence.
• Basic earnings per share of 12.56 pence
• Free cash flow of £5.5 billion. Net cash flow from operating activities of £10.5 billion

Other highlights

• Final dividend per share of 5.02 pence, giving total dividends per share of 7.51 pence
• Dividend pay out ratio of 60%, in line with policy, and a total payout of £4.0 billion for the financial year
• 1st in UK and 11th globally in the BrandZ most powerful brands ranking

Download Vodafone Annual Report 2008

PDF format, 5MB, 160Pages.

Vodafone is the world’s leading international mobile communications group, providing a wide range of communications services.

Vodafone is seeing significant change in its operating environment. Traditional market boundaries are shifting as customers benefit from a growing choice in communications services.

Read Vodafone Annual Report Online

Prospects for the year ahead
Operating conditions are expected to continue to be challenging in Europe given the current economic environment and ongoing pricing and regulatory pressures but with continued positive trends in messaging and data revenue and voice usage growth.

We expect increasing market penetration to continue to result in overall strong growth for the EMAPA region.

Our geographically diverse portfolio should provide some resilience in the current economic environment. We also anticipate significant benefit from recent changes in foreign exchange rates compared to 2008, particularly in respect of the euro, which we have assumed to be on average at 1.30 to sterling for the year.

Our revenue expectations for the year ahead reflect our drive for growth, particularly in respect of our total communications strategy for data and fixed broadband services and in emerging markets. Adjusted operating profit is therefore anticipated to reflect a greater proportion of lower margin fixed broadband services together with continued strong performance from Verizon Wireless in the US.

Capital expenditure on fixed assets includes an increase in investment in India to drive further strong growth. Capital intensity is expected to be maintained at around 10% of revenue for the total of our Europe region and common functions, with continued investment in growth. Free cash flow excludes spectrum and licence payments and is after taking into account £0.3 billion from payments for capital expenditure deferred from 2008.

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