Notes to the consolidated
financial statements
3. Segment analysis
The Group has a single group of related services and products being the supply of communications services and products. Segment information is provided on the basis of geographic areas, being the basis on which the Group manages its worldwide interests. Revenue is attributed to a country or region based on the location of the Group company reporting the revenue. Inter-segment sales are charged at arm’s length prices.
During the year ended 31 March 2010 the Group changed how it determines and discloses segmental EBITDA and adjusted operating profit in order to ensure the Group’s disclosures better reflect the contribution of each segment to the Group’s underlying operating performance and remain consistent with internal reporting to management. The changes do not impact Vodafone’s consolidated results. Intercompany revenue and expenses arising from royalty fees for the use of the Vodafone brand, which were previously included within operating expenses, are now excluded from the calculation of EBITDA and adjusted operating profit of each segment and Common Functions. In addition, intercompany charges for fixed asset usage, which were also previously included within operating expenses, are now reported within depreciation for purposes of calculating EBITDA of each segment. The tables below present segment information on the revised basis, with prior years amended to conform to the current year presentation.
| Segment revenue £m | Common Functions £m | Intra-region revenue £m | Regional revenue £m | Inter-region revenue £m | Group revenue £m | EBITDA £m |
|
|---|---|---|---|---|---|---|---|
| 31 March 2010 | |||||||
| Germany | 8,008 | (37) | 7,971 | (12) | 7,959 | 3,122 | |
| Italy | 6,027 | (37) | 5,990 | (5) | 5,985 | 2,843 | |
| Spain | 5,713 | (79) | 5,634 | (4) | 5,630 | 1,956 | |
| UK | 5,025 | (45) | 4,980 | (12) | 4,968 | 1,141 | |
| Other Europe(1) | 5,354 | (51) | 5,303 | (5) | 5,298 | 1,865 | |
| Europe | 30,127 | (249) | 29,878 | (38) | 29,840 | 10,927 | |
| Vodacom(2) | 4,450 | – | 4,450 | (7) | 4,443 | 1,528 | |
| Other Africa and Central Europe(3) | 3,576 | – | 3,576 | (53) | 3,523 | 799 | |
| Africa and Central Europe | 8,026 | – | 8,026 | (60) | 7,966 | 2,327 | |
| India | 3,114 | (1) | 3,113 | (20) | 3,093 | 807 | |
| Other Asia Pacific and Middle East(4) | 3,368 | – | 3,368 | (31) | 3,337 | 1,033 | |
| Asia Pacific and Middle East | 6,482 | (1) | 6,481 | (51) | 6,430 | 1,840 | |
| Common Functions(5) | – | 269 | – | 269 | (33) | 236 | (359) |
| Group(6) | 44,635 | 269 | (250) | 44,654 | (182) | 44,472 | 14,735 |
| Verizon Wireless(6) | 17,222 | 6,689 | |||||
| 31 March 2009 | |||||||
| Germany | 7,847 | (52) | 7,795 | (16) | 7,779 | 3,225 | |
| Italy | 5,547 | (36) | 5,511 | (6) | 5,505 | 2,565 | |
| Spain | 5,812 | (93) | 5,719 | (4) | 5,715 | 2,034 | |
| UK | 5,392 | (46) | 5,346 | (10) | 5,336 | 1,368 | |
| Other Europe(1) | 5,329 | (66) | 5,263 | (5) | 5,258 | 1,957 | |
| Europe | 29,927 | (293) | 29,634 | (41) | 29,593 | 11,149 | |
| Vodacom(2) | 1,778 | – | 1,778 | – | 1,778 | 606 | |
| Other Africa and Central Europe(3) | 3,723 | – | 3,723 | (48) | 3,675 | 1,114 | |
| Africa and Central Europe | 5,501 | – | 5,501 | (48) | 5,453 | 1,720 | |
| India | 2,689 | (1) | 2,688 | (19) | 2,669 | 717 | |
| Other Asia Pacific and Middle East(4) | 3,131 | – | 3,131 | (31) | 3,100 | 1,062 | |
| Asia Pacific and Middle East | 5,820 | (1) | 5,819 | (50) | 5,769 | 1,779 | |
| Common Functions(5) | – | 216 | – | 216 | (14) | 202 | (158) |
| Group(6) | 41,248 | 216 | (294) | 41,170 | (153) | 41,017 | 14,490 |
| Verizon Wireless(6) | 14,085 | 5,543 | |||||
| 31 March 2008 | |||||||
| Germany | 6,866 | (51) | 6,815 | (11) | 6,804 | 2,816 | |
| Italy | 4,435 | (33) | 4,402 | (6) | 4,396 | 2,148 | |
| Spain | 5,063 | (96) | 4,967 | (4) | 4,963 | 1,908 | |
| UK | 5,424 | (46) | 5,378 | (10) | 5,368 | 1,560 | |
| Other Europe(1) | 4,583 | (64) | 4,519 | (3) | 4,516 | 1,735 | |
| Europe | 26,371 | (290) | 26,081 | (34) | 26,047 | 10,167 | |
| Vodacom(2) | 1,609 | – | 1,609 | – | 1,609 | 586 | |
| Other Africa and Central Europe(3) | 3,337 | – | 3,337 | (35) | 3,302 | 1,108 | |
| Africa and Central Europe | 4,946 | – | 4,946 | (35) | 4,911 | 1,694 | |
| India | 1,822 | – | 1,822 | (12) | 1,810 | 598 | |
| Other Asia Pacific and Middle East(4) | 2,577 | – | 2,577 | (26) | 2,551 | 906 | |
| Asia Pacific and Middle East | 4,399 | – | 4,399 | (38) | 4,361 | 1,504 | |
| Common Functions(5) | – | 170 | – | 170 | (11) | 159 | (187) |
| Group(6) | 35,716 | 170 | (290) | 35,596 | (118) | 35,478 | 13,178 |
| Verizon Wireless(6) | 10,144 | 3,930 |
- Notes:
- (1)
- EBITDA is stated before £574 million (2009: £520 million; 2008: £425 million) representing the Group’s share of results in associates.
- (2)
- EBITDA is stated before £(2) million (2009: £(1); 2008: £nil) representing the Group’s share of results in associates.
- (3)
- EBITDA is stated before £50 million (2009: £27; 2008: £nil) representing the Group’s share of results in associates.
- (4)
- EBITDA is stated before £6 million (2009: £4 million; 2008: £2 million) representing the Group’s share of results in associates.
- (5)
- EBITDA is stated before £2 million (2009: £(1) million; 2008: £2 million) relating to the Group’s share of results in associates.
- (6)
- Values shown for Verizon Wireless are not included in the calculation of Group revenue or EBITDA as Verizon Wireless is an associate.
A reconciliation of EBITDA to operating profit is shown below. For a reconciliation of operating profit to profit before taxation, see the "Consolidated income statement".
| 2010 £m | 2009 £m | 2008 £m |
|||
|---|---|---|---|---|---|
| EBITDA | 14,735 | 14,490 | 13,178 | ||
| Depreciation and amortisation including loss on disposal of fixed assets | (8,011) | (6,824) | (5,979) | ||
| Share of results in associates | 4,742 | 4,091 | 2,876 | ||
| Impairment losses, net | (2,100) | (5,900) | – | ||
| Other income and expense |
114 | – | (28) | ||
| Operating profit | 9,480 | 5,857 | 10,047 |
| Non-current assets (1) £m | Capital expenditure(2) £m | Other expenditure on intangible assets £m | Depreciation and amortisation £m | Impairment losses, net £m |
|
|---|---|---|---|---|---|
| 31 March 2010 | |||||
| Germany | 20,211 | 766 | 18 | 1,422 | – |
| Italy | 17,941 | 610 | 60 | 732 | – |
| Spain | 12,746 | 543 | – | 638 | – |
| UK | 6,977 | 494 | – | 963 | – |
| Other Europe | 8,862 | 618 | – | 781 | – |
| Europe | 66,737 | 3,031 | 78 | 4,536 | – |
| Vodacom | 7,783 | 520 | – | 1,005 | – |
| Other Africa and Central Europe | 6,357 | 869 | 228 | 811 | (200) |
| Africa and Central Europe | 14,140 | 1,389 | 228 | 1,816 | (200) |
| India | 8,665 | 853 | – | 848 | 2,300 |
| Other Asia Pacific and Middle East | 4,589 | 552 | – | 634 | – |
| Asia Pacific and Middle East | 13,254 | 1,405 | – | 1,482 | 2,300 |
| Common Functions | 769 | 367 | 19 | 76 | – |
| Group | 94,900 | 6,192 | 325 | 7,910 | 2,100 |
| 31 March 2009 | |||||
| Germany | 21,617 | 750 | 16 | 1,378 | – |
| Italy | 18,666 | 521 | – | 735 | – |
| Spain | 13,324 | 632 | – | 606 | 3,400 |
| UK | 7,414 | 446 | – | 1,010 | – |
| Other Europe | 9,375 | 511 | – | 766 | – |
| Europe | 70,396 | 2,860 | 16 | 4,495 | 3,400 |
| Vodacom | 2,287 | 237 | – | 231 | – |
| Other Africa and Central Europe | 5,700 | 625 | 21 | 837 | 2,500 |
| Africa and Central Europe | 7,987 | 862 | 21 | 1,068 | 2,500 |
| India | 10,308 | 1,351 | – | 746 | – |
| Other Asia Pacific and Middle East | 4,687 | 524 | 1,101 | 484 | – |
| Asia Pacific and Middle East | 14,995 | 1,875 | 1,101 | 1,230 | – |
| Common Functions | 810 | 312 | – | 21 | – |
| Group | 94,188 | 5,909 | 1,138 | 6,814 | 5,900 |
| 31 March 2008 | |||||
| Germany | 613 | 14 | 1,229 | – | |
| Italy | 411 | 1 | 627 | – | |
| Spain | 533 | – | 522 | – | |
| UK | 465 | – | 1,016 | – | |
| Other Europe | 469 | 11 | 650 | – | |
| Europe | 2,491 | 26 | 4,044 | – | |
| Vodacom | 204 | 2 | 219 | – | |
| Other Africa and Central Europe | 702 | 5 | 698 | – | |
| Africa and Central Europe | 906 | 7 | 917 | – | |
| India | 1,030 | – | 562 | – | |
| Other Asia Pacific and Middle East | 463 | – | 394 | – | |
| Asia Pacific and Middle East | 1,493 | – | 956 | – | |
| Common Functions | 185 | 8 | (8) | – | |
| Group | 5,075 | 41 | 5,909 | – |
- Notes:
- (1)
- Includes goodwill, other intangible assets and property, plant and equipment.
- (2)
- Includes additions to property, plant and equipment and computer software, reported within intangible assets.
© Copyright Vodafone 2010
