Mobile phone giant Vodafone (LON:VOD) today warned profits will remain flat next year reflecting the difficult European consumer environment.
Adjusted operating profit, which was £11.5 billion this year, is expected to be between £11.1 billion and £11.9 billion in 2013.
Pre-tax profits rose 0.5 per cent to £9.6 billion in the year to end March, but fell by 10 per cent on an underlying basis.
A strong performance from the company’s 45 per cent-owned US arm Verizon Wireless helped boost revenue by 1.2 per cent to £46.4 billion.
It also helped the group lift its annual dividend by seven per cent to 9.52 pence a share, as it underlined its status as Britain’s biggest dividend payer.
The group received £2.9 billion in dividends from Verizon, of which £2 billion was paid out as a special dividend to Vodafone shareholders.
“Our focus on the key growth areas of data, emerging markets and enterprise is positioning us well in a difficult macroeconomic environment,” said chief executive Vittorio Colao.
Shares edged up 2.5 per cent in early trading to 167.5 pence.