Healthy rise in Vodafone profit

Vodafone has reported a healthy 25% increase in profit for the year to March 2011, but is warning tougher times are on the way.

The company’s annual report shows profits are up from $121.6 million to $151.5 million, with revenue rising 6% from $1.59 billion to $1.69 billion.

The profit increase comes at the same time as new rival 2degrees fights hard for a share of the market; however, the biggest threat to Vodafone’s profits is the decision by the Commerce Commission in May to cut Mobile Termination Rates (MTR).

"The provisional expected impact on Vodafone New Zealand Limited 2012 financial year is a decrease of $124m revenue and $55m other comprehensive income,” the report reads.

A dividend of $130 million was paid to Vodafone’s British parent, Vodafone PLC.