Profits Soar As Vodafone Taps Into India And Turkey

Sun Herald

Sunday May 25, 2008

By Alex Armitage

VODAFONE Group Plc, the world's largest mobile phone company, is expected to report a full-year profit this week because of rising sales in India and Turkey and increased demand for wireless internet services.

Net income was #6.35 billion ($13.1 billion), compared with a loss of #5.43 billion a year earlier, according to the average estimate of 13 analysts compiled by Bloomberg.

Sales for the year ended in March rose 14 per cent to $73.05 billion, based on 28 estimates. Vodafone, based in Newbury, England, reports on May 27.

Chief executive Arun Sarin expanded Vodafone over the past two years in Turkey and India - the fastest growing of the world's top 20 mobile phone markets - by buying stakes in wireless operators.

The purchase of Tele2 AB's Spanish and Italian broadband units, as well as mobile internet and email services, increased revenue.

"India has seen steady growth," said John Davies, an analyst at Dresdner Kleinwort in London. "There is still plenty of ground for optimism in data growth."

Of 31 analysts covering Vodafone in the past six months, 21 recommend buying the stock, six advise selling and four rate it "hold", according to Bloomberg.

© 2008 Sun Herald

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