The benefit of Vodafone Spain falls 44% in its last fiscal year

Vodafone not things going well in Spain. The consumption crisis has hit him. So much so that it has motivated a radical turn to his trade policy and even a change in the directive dome. The reasons of the turbulence must be sought in the results. Vodafone Spain recorded a net profit in its last fiscal year of 2011 (from 31 March 2011 to 31 March 2012) of 372,5 million euros, which represents a decrease of 44.3% with respect to the previous year, according to accounts deposited in the register. The British multinational does not publish the results of its subsidiaries.

The fall of results is much worse than the evolution of income, they reached 5,418 million, a decrease of 9.9%. Also dropped by 41.2%, to 534,6 million operating result. The reason is the increased commercial costs that, along with falling prices, has prompted a strong narrowing of margins.

The Spanish subsidiary account contrasts with the general progress of the group. Thus, worldwide revenues grew 1.2% up to 46,400 million pounds (55.860 million euros) and gross operating profit (Ebitda) of the Vodafone Group fell only 1.3 per cent to £ 14,500 m.

The company has justified the deterioration of their results the ERE that negotiates with unions for 900 workers

The company has justified the deterioration of their results the record of employment regulation which negotiates with unions for 900 workers. In 2012, Vodafone Spain announced a record of regulating temporary employment (ERTE) 15 days for all workers, but not resorted to layoffs. According to the accounts of the registry, the template in Spain just dropped: went from 4.394 in 2011 to 4.368 in 2012.

The multinational is aware of the bad situation of the Spanish market. In their latest accounts has provided 4 billion pounds (5 billion euros) by the depreciation in value of its business in Spain, Italy, Portugal and Greece, and it is estimated that half of this amount corresponds only to Spain.

Vodafone wants to straighten the situation with an aggressive trade policy. Its new CEO, Antonio Coimbra, has presented Vodafone network, the closest thing on the market to a flat-rate, with free calls and unlimited text (SMS) messages to any number 24.

Finance; Economic; Business

Finance; Economic; Business

Title Post: The benefit of Vodafone Spain falls 44% in its last fiscal year
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