Vodafone Silent on Verizon, Posts Fall in Revenue
Vodafone posted its largest ever quarterly fall in key organic service revenue on Tuesday, down 4.2 percent, the worst fall in its main sales measurement since the company started using that metric in 2003.
As a result the telecommunications giant held onto its dividend from its U.S. arm and reinvested it into the business rather than returning it to shareholders.
The world's second largest mobile operator made no mention of a much anticipated announcement as to whether it will sell its 45 percent stake in Verizon Wireless to partner Verizon Communications.
Vodafone's full year revenues for the year ended 31 March 2013 were down more than 4 percent to 44.4 billion pounds, the first drop in full-year sales since 2005, while core earnings fell 3.1 percent to 13.3 billion pounds.
The group upped its total dividend by 7 percent to 10.19 pence per share.
"With the announcement of today's 7 percent increase, the ordinary dividend per share has grown over 22 percent in the last three years. The board remains focused on balancing ongoing shareholder remuneration with the long-term investment needs of the business, and going forward aims at least to maintain the ordinary dividend per share at current levels," Vittorio Colao, Group Chief Executive said in a statement:
Emeka Obiodou, principal analyst in Ovum's industry, which provides telecommunications analysis told CNBC the results are a manifestation of the challenges the firm faces in southern Europe.
"Vodafone should be focusing on trying to revitalize its European operations, but everyone else wants to hear what they have got to say about Verizon, so they are caught in this Catch 22 scenario," said Obiodou.
The firm also failed to grow their business in emerging markets, Africa and India, seeing a slide in revenue of 3.2 percent over the period.
"India is a basket case in terms of competition, everyone is lowering their prices. The fact that emerging markets are no longer enough to offset the challenges in Europe has become the dominant theme for Vodafone, France Telecom and Deutsche Telekom," he said.
—By CNBC.com's Jenny Cosgrave; Follow her on Twitter @jenny_cosgrave