Vodafone Fiscal Net Falls 54% on Charges

Updated from 2:32 a.m. EDT

U.K. mobile phone company Vodafone(VOD Quote) said fiscal-year profit fell 54.4% to 3.08 billion pounds ($4.76 billion) as it recorded 5.9 billion pounds of impairments, mainly related to investments in Spain.

Revenue for the fiscal year ended March 31 rose 15.6% to 41 billion pounds. Adjusted operating profit rose 16.7% to 11.8 billion pounds before impairment charges, as a growing contribution from Verizon Wireless and foreign currency benefits offset weaker performance in Europe. Adjusted profit for the year attributable to equity shareholders rose 36.6% to 9.06 billion pounds.

Verizon Wireless, which Vodafone owns with Verizon Communications(VZ Quote), saw organic service revenue grow 10.5% in the year and profit rise 44.7%, driven by increased customer penetration and data. Vodafone said Verizon Wireless now contributes 30% of its adjusted operating profit.

The company said its cost-cutting plan of 1 billion pounds is "ahead of plan" and Vodafone continues to "explore further ways to reduce cost."

The company said it expects adjusted operating profit in fiscal-year 2010 of 11.0 billion pounds to 11.8 billion pounds.

The company said operating conditions will be challenging in 2010 in Europe and central Europe.