Earnings release for the third quarter of FY2003, ended December 31, 2003 - 2

Fiscal 2003 consolidated financial forecasts

Vodafone Holdings is adjusting downward its fiscal 2003 forecasts.

Consolidated revenue is now expected to reach 1,660 billion yen, a downward adjustment of 20 billion yen compared to the previous forecast. Whilst December net additions were better than in previous months, and the increase in upgrade incentives, together with the retention plans Vodafone Happy Time, Vodafone Happy Bonus, Vodafone Happy Packet, have recently helped reduce churn, additions overall have been lower than forecast. The prepaid offering continues to be popular although customers in this segment tend to spend less than postpaid customers.

Consolidated ordinary income is expected to total 187 billion yen as lower revenues led to lower income levels, and as an increase in upgrade incentives resulted in greater handset upgrades than forecast and thus higher costs . As a result of the above, the Company now foresees a consolidated net loss of 114 billion yen.

Despite these adjustments, Vodafone Holdings K.K. believes that the recent commercial initiatives to bolster retention are on track to assist Vodafone K.K. in achieving its goal of keeping a healthy balance between attractive offerings for customers and overall profitability, and to regain competitiveness in the near future.

Consolidated forecasts for fiscal 2003

(billion yen)
  Revised FY03
Forecast
Prior FY03 Forecast
(as of 18 November 2003)
% change to
prior forecast
Operating revenue 1,660 1,680 -1.2%
Ordinary income 187 212 -11.8%
Net income (loss) (114) (104) NA