Vodafone reports a profit boost and dividend increase

This will be of interest to the company's thousands of Irish shareholders...

Vodafone reports a profit boost and dividend increase

File photo of a Vodafone store | Image: PA / PA Archive/Press Association Images

Vodafone has published annual results to March, EBITDA or operating profits grew by close to 3% to £11.6bn.

The total dividend for the year – which will be of interest to thousands of Irish shareholders - was 2% higher at 11.45p per share.

Across Europe, the telecom company beat market expectations as 'organic service revenue' which includes customer fees but not handset sales, grew by 2.5%.

The company narrowed losses in markets including Germany, Italy, Spain and the UK while it grew in Turkey and South Africa.

Just over 25% of small Irish shareholders in Vodafone have taken up an offer to sell their shares free of charge as of May 3rd. Under 61,000 or slightly over a quarter of the 231,000 shareholders holding between 51 and 1,000 shares had responded to an offer to sell their shares at a discounted price

The Vodafone offer expired on May 24th. The company hopes to clean up its share register - some 80% of its small shareholders are in Ireland.

Many Irish people were issued with the shares after originally investing in Telecom Eireann (now Eir) when it was floated in 1999.

Revenue has determined that investors would need to sell their shares for €4.58 to make a profit - they are currently trading for under £2.20, meaning that 16 years on there is little chance of these investors breaking even.