Mobile phone giant Vodafone today said it expects mobile revenue growth to slow and a key measure of profitability to fall in its next financial year.
The company has predicted mobile revenue growth on an organic basis - excluding acquisitions or disposals - will be between 5 per cent and 6.5 per cent in the year to March 31st, 2007, down from its forecast for growth in the middle of a 6 per cent and 9 per cent range this year.
The mobile group said it expected an impairment to the carrying value of goodwill of between £23 billion and £28 billion, reflecting lower growth prospects than previously assumed.
Mobile earnings before interest, tax, depreciation and amortisation, excluding Japan, would fall around 1 per cent next financial year, it added.
The firm blamed stiff competition, as well as regulatory cuts in termination rates, but said its outlook for the current financial year was unchanged and its expectations for adjusted earnings next fiscal year were in line with market forecasts.
The firm said most of the impairment would be attributable to Vodafone Germany.
