One of the best-known mobile communication groups in the UK, and indeed around the world, Vodafone have seen some serious hits to their business and their confidence this month. The mobile giant has fallen drastically into the red with an annual loss estimated at around £5.2 billion after they took a significant hit to their Indian sector.
The Vodafone team recently confirmed that they have seen a £3.2 billion write-down for their Indian business, which has been struggling significantly in the recent months. The write-down announcement comes not so long after a deal was struck in March of this year to combine the Indian operation with the "Idea Cellular" group, in an attempt to deal with the price war that the country was currently facing.
Problems for the UK Branch
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Vittorio Colao, CEO, Vodafone[/caption]
It's not just the Indian business that's suffering in Vodafone's eyes either. The mobile company have also seen a huge plunge in their earnings within the UK. The latest revenue announcements revealed that the UK has been hit by seriously falling sales. Experts believe that some of the reasoning behind the current UK problems can be linked back to the impact of the falling pound value ever since the Brexit vote took effect.
Overall, the underlying earnings for Vodafone saw a boost of around 5.8% to 12 billion, excluding the issues with the Indian division, and the group are currently forecasting a stronger level of growth to their profit margins of around 8% during the remainder of the current financial year.
