Vodafone cuts full-year forecast as climate worsens
© Reuters. FILE PHOTO: A branded sign is displayed on a Vodafone store in London, Britain May 16, 2017. REUTERS / Neil Hall
LONDON (Reuters) – Vodafone cut its full-year free cash flow forecast by 200 million euros on Tuesday and said earnings would fall to the bottom of its range, reflecting the global macroeconomic situation. is deteriorating and energy costs are higher.
The mobile phone operator said free cash flow would be around 5.1 billion euros ($5.3 billion), down from the previous guidance of 5.3 billion, and adjusted core earnings would between 15.0 and 15.2 billion euros, down from 15.0 to 15.5 billion euros.
CEO Nick Read said Vodafone (NASDAQ:NY) is delivering steady performance amid a challenging macroeconomic environment.
“We are taking a number of steps to mitigate the economic backdrop of high energy costs and rising inflation,” he said, adding that these include price increases across Europe. Europe.
Vodafone reported a 2.6% drop in adjusted earnings for the first six months, attributed to poor commercial performance in Germany, its biggest market, and a one-off legal settlement. in Italy last year.
($1 = 0.9666 euros)