Vodafone sees FY19 adjusted EBITDA EUR14.15B-EUR14.65B
Vodafone says, "Overall, we expect to grow our adjusted organic EBITDA by 1 - 5%, excluding the impact of UK handset financing in both years, and the significant benefit in the prior year from regulatory settlements in the UK and a legal settlement in Germany. Based on guidance FX rates, and under IAS18 accounting standards, this implies an adjusted EBITDA range of EURO$14.15-14.65 billion for the year. During the 2019 financial year the Group will adopt the IFRS15 accounting standard, which will be jointly reported alongside our results in FY2019 on an IAS18 basis. Under IFRS15, we expect our organic service revenue growth will be slightly higher and our absolute adjusted EBITDA will be slightly lower, primarily due to the elimination of the impact of UK handset financing under IAS18, with no impact on free cash flow. We continue to expect our capital additions, expressed as a percentage of our revenues, to remain in the 'mid-teens', excluding capital additions related to the Gigabit Investment Plan in Germany. The Plan is expected to ramp up during the year, with total incremental capital additions estimated to be c.EURO$2 billion over a four year period, and an annual drag on FCF in the initial years of the Plan of around EURO$100-200 million. We aim to generate FCF pre-spectrum of at least EURO$5.2 billion, after all capex, before M&A and restructuring costs, and based on guidance FX rates."