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Investing.com — Vodafone Group PLC (LON:VOD) has narrowed its annual income guidance after the telecommunications group flagged that soaring consumer prices and elevated energy costs weighed on its half-year performance.
The U.K.-based firm said it now expects to report adjusted earnings before interest, tax, depreciation and amortization after lease of €15.0 – €15.2 billion (€1 = $1.039) in its 2023 fiscal year. It had previously estimated that the figure would register in between €15.0 – €15.5B.
Adjusted free cash flow is also seen at around €5.1B, down from €5.3B.
“Since this guidance was set in May 2022, the global macroeconomic climate has worsened, with energy costs and broader inflation in particular, impacting our financial performance,” Vodafone said.
However, in a statement, Group Chief Executive Officer Nick Read said the company is working to mitigate these broader economic headwinds through price hikes across Europe and energy expense reductions.
Meanwhile, analysts at Goldman Sachs noted that the lowered outlook was “well-anticipated.”
In the six months ended on September 30, adjusted core profit slid by 2.6% year-on-year to €7.2B, missing analysts’ expectations of €7.5B. A 2% uptick in total revenue, buoyed by elevated equipment sales, was offset by weak performance in Germany and higher prior-year comparables in Italy.
Shares in Vodafone fell in early trading on Tuesday.
