For the six months ending 30 September, Vodafone made a loss of £1.98bn, compared with a net profit of £6.68bn a year earlier
Mobile communications company Vodafone reported a six-month loss as it booked a big charge on its Spanish and Italian operations.
For the six months ending 30 September, Vodafone made a loss of £1.98bn, compared with a net profit of £6.68bn a year earlier.
Revenue fell 7% to £21.8bn largely because of adverse currency movements.
The company said Tuesday the £5.9bn pounds impairment charge for Spain and Italy reflected lower projected cash flows and increased discount rates.
Service revenues across Southern Europe were down by 9.8% in the six months and the company said it was suffering from "margin erosion" in Italy, Greece and Portugal.
Vittorio Colao, chief executive, said: "We have continued to make progress on our strategic priorities over the last six months, with good growth in data and emerging markets in particular. In the short-term, however, our results reflect tougher market conditions, mainly in Southern Europe."
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, commented: "The wider market has held concerns over Southern Europe for some time now, and these numbers from Vodafone are uncomfortable proof that the financial fears are well-founded."
Vodafone shares fell 3.5% in early trading, to 161p.