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Vodafone doubles profits, loses ground in UK

Vodafone's in the money
Vodafone's in the money

Vodafone has announced a massive surge in its pre-tax profits, growing to £8.7 billion from £4.2 billion the previous year.

It seems that consumers using their mobiles to actually phone people isn't the reason for the profit increase, though, but an increase in data package and broadband use.

Another reason for the profit growth is to do with company initiating a £1 billion cost-savings programme.

Although Vodafone has been prolific in bringing the latest handsets to the UK, including the HTC Desire and the iPhone, it did see its revenue in the UK slip by 4.7 per cent and earnings by 16.6 per cent to £1.14 billion.

Again this was put down to consumers not actually picking up their phones to speak and the fact that there has been some "intense" competition in the UK market.

Exceeded expectations

Speaking about the results Vittorio Colao, CEO of Vodafone, said: "Vodafone's financial results exceeded our upgraded guidance on all measures.

"Revenue trends have improved again in the fourth quarter, driven by growth in mobile data and fixed broadband."

Just last week, Vodafone announced its decision to drop unlimited internet on its data packages, something which has received a mixed reception from users.