Local Vodafone wins but int’l income falls

Local Vodafone wins but int’l income falls

ISTANBUL - Hürriyet Daily News
Local Vodafone wins but int’l income falls

The number of Vodafone subscribers in Turkey has increased, the company says. AFP Photo

Vodafone Turkey posted a large income increase for the six months ending Sept. 30, in contrast to the parent company’s overall loss during the same period, mainly because of the big losses of its Spanish and Italian operations.

The Turkey branch announced yesterday that its income increased to 2.7 billion Turkish Liras in the first half of its fiscal year, with a 19.1 percent increase from the same period a year earlier.
The number of subscribers of Vodafone increased to 18.7 million as its share in the mobile market slightly rose to 28.9 percent.

Shrinkage in Europe

However, the London-based parent company failed to paint a bright picture.

It wrote down the value of its business in Spain and Italy by 5.9 billion pounds ($9.4 billion) and lowered its cash flow forecast as recession-hit southern Europeans cut back on using their mobile phones.

The British mobile operator yesterday became the latest company to fall victim to a plunge in demand in peripheral eurozone countries, as they drive through austerity measures to reduce government deficits, Reuters said.

Better than rival firms

Last week, French bank Credit Agricole took a 2 billion-euro writedown on the sale of its Greek business, while companies from steelmakers to brewers have warned of weakening trade across the eurozone.

Vodafone is in a better position than many rivals thanks to its strength in the faster-growing U.S. and emerging markets, and continues to pay a dividend when others have cut back, the agency said.