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Vodafone's underlying earnings rise, losses through Luxembourg tax hit


Vodafone's underlying earnings rise, losses through Luxembourg tax hit

Mixed results from Vodafone, the world’s second-largest mobile phone operator.

The British based company posted full-year underlying earnings – before interest, tax, depreciation and amortisation – that were up 2.7 percent at 11.6 billion pounds (14.8 billion euros).

But losses after taxation came in at 4.02 billion pounds (5.14 billion euros) in the year to the end of March.

That was mostly because of a large charge from the revaluation of its investments in Luxembourg.

The shares rose on Tuesday as investors focused on Vodafone’s forecast that its earnings growth would accelerate this year after a two-year 19 billion pound investment programme to improve its networks boosted demand in Europe, particularly in Italy and Germany.

Chief Executive Vittorio Colao said the programme had transformed the quality of the group’s technology and customer experience.

“I am confident we will sustain our positive momentum in the coming year, allowing us to maintain attractive returns for our shareholders,” he said.

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