Earnings release for the FY2003 ended March 31, 2004 - 1

25 May 2004


("Vodafone Holdings") (TSE: 9434) today announces its results for fiscal year 2003, ended 31 March 2004. The results were broadly in line with the company's forecasts, which were adjusted on 28 January 2004 due to intensified competition in Vodafone K.K.'s operating environment and increased costs to enhance the attractiveness of its offerings.

The consolidated results marked a decline versus the prior fiscal year as Vodafone Holdings ceased to consolidate the results of its subsidiary Japan Telecom Co.,Ltd. ("Japan Telecom") from 1 October 2003, the sale of which legally completed on 14 November 2003. Consolidated operating revenues decreased 7.9% to 1,655.7 billion yen compared to the previous fiscal year, due to exclusion of the fixed line results for the second half of the fiscal year. Ordinary income totaled 181.2 billion yen, a 33.3% decrease compared to the same period one year ago owing to an increase in operating, marketing, and depreciation expenses at its mobile subsidiary Vodafone K.K. The company posted a net loss of 100.0 billion yen due to a write down of Japan Telecom shares.

Darryl E. Green, President of Vodafone Holdings and Vodafone K.K., said, "Market conditions in fiscal 2003 proved challenging, as our competitors offered increasingly competitive services and drove migration to their 3G networks. Despite these circumstances, we maintained an overall market share of 18%. We dramatically improved 3G coverage, achieving population coverage of 99%, and will focus on enhancing indoor coverage going forward. We also succeeded in enhancing operating efficiencies by consolidating four separate customer service centres into a single East Japan customer centre. To effectively address the challenges facing us, an extensive plan has also been put in place. To compete more effectively, we will deliver a wider range of 3G handsets before the end of 2004 by fully leveraging local and global synergies. We will also optimise our marketing approach and build a foundation for long-term growth by developing our people, processes and systems. Out of this programme we expect to emerge as a much stronger competitor."

Consolidated financial summary

(billion yen, except per share data)
  Fiscal 2003 Fiscal 2002 Change (%)
Operating revenue 1,655.7 1,796.9 (7.9%)
Ordinary income 181.2 271.9 (33.3%)
Net income (loss) (100.0) 79.5  
Earnings per share (31,310yen) 24,856yen  

Consolidated operating revenue breakdown

(billion yen)
  Fiscal 2003 Fiscal 2002 Change (%)
Mobile business *1 1,508.8 1,460.4 3.3%
Fixed-line business *2 175.1 384.9 (54.5%)
Other business - 16.3 -
Elimination (28.2) (64.6) -
Operating revenue 1,655.7 1,796.9 (7.9%)
  • *1 Consolidated operating revenue of mobile business subsidiaries including Vodafone.K.K.
  • *2 Consolidated operating revenue of fixed-line business subsidiaries including Japan Telecom reflecting results for 1 April to 30 September 2003.