Vodafone sees big growth in mobile data

But £5.6bn write-off hits profits

Mobile data is growing fast

Vodafone customers spent 43 per cent more on data services during the mobile operator’s latest financial year, reaching a total of £3bn for the first time.

The growth in data revenue helped to alleviate the impact of a £5.9bn write-off at the company, caused mainly by problems in the firm’s Spanish arm.

Before the one-off charges, operating profit of £11.8bn for the year to 31 March showed growth of 16.7 per cent, on group revenue up 15.6 per cent to £ 41bn.

Vodafone’s existing cost-cutting programme is to be accelerated, with 65 per cent of the £1bn target expected to be achieved in the next financial year.

"These results demonstrate the impact of the early actions we took to address the current economic conditions and highlight the benefits of our geographic diversity,” said chief executive Vittorio Colao.

“The business continues to generate cash strongly and we have made good progress in implementing the strategy announced in November. Data revenue grew to £3bn for the year and our broadband and enterprise businesses continue to perform well.”

Vodafone announced in February it was to cut 500 jobs as part of its cost-saving plan.