Interim management statement for the quarter ended 31 December 2011
- Strong performance in growth markets; southern Europe becoming more challenging
- Group service revenue growth +0.9%; or +3.1% excluding mobile termination rate cuts
- Strong service revenue growth in India +20.0%, Vodacom +8.0% and Turkey +23.5%; continued progress in Germany +0.7% and the UK +1.1%
- Economic conditions in southern Europe showing further deterioration: greater service revenue decline in Italy, -4.9%; fall in Spain broadly stable at -8.8% benefiting from our commercial actions
- Continued strong growth in our US associate, Verizon Wireless; service revenue +6.8% driven by strong customer and data revenue growth
- Data revenue +21.8%; European smartphone penetration now 24.4% (Q3 10/11: 16.5%)
- Free cash flow 1.5 billion; net debt 25.5 billion after 0.8 billion proceeds from Polkomtel disposal, 0.8 billion of share buybacks and 1.0 billion of spectrum payments
- Full year guidance for adjusted operating profit and free cash flow confirmed
